Land prices in Dala township, located on the southern bank of Yangon river across from downtown Yangon, have increased tenfold since talks of a bridge to be built to link Yangon and Dala emerged, local real estate agents say.
Local media reported last month that the Myanmar government had come to an agreement with the South Korean government to build a road bridge linking both sides of the river, but no agreement has yet been signed.
In previous years, land prices in Twante township were about K200,000 per acre, but the prices are now reaching K2 million in some places depending on their location within the township.
“As the prices increase, sellers who want to sell urgently are waiting for buyers who are offering higher prices,” Ko Aung Myint, a real estate dealer in Twante township, which is next to Dalah, told Myanmar Business Today.
“If they had received K1 million in the past, they are now aiming for K10 million. Many owners with acres of land are hoping for interest from foreign investors as they tend to have more money available,” he said, adding that land prices were continuing to increase nationwide.
Ko Aung Myint said land prices are increasing ten-fold not just in Twante township, but in other townships such as Dala, Konchankone, Kaukmtoo, Daydaye and Pharpone.
Additionally, land prices nationwide are having an impact on foreign investors in the country and many potential investors are waiting for prices to drop before investing, according to U Aung Myint, a local entrepreneur.
“Currently many foreign investors are surprised by the high land prices in Myanmar and for many investors, the cost of land is crucial,” he told Myanmar Business Today.
“The government must find a solution to prevent land prices from spiralling further. Otherwise foreign investment will decrease. Land prices in some parts are currently higher than in USA and the state and local entrepreneurs must work together to solve this,” he added.
