Home MMBIZ News Gov’t to Slash Budget Housing Cost to $10,000

Gov’t to Slash Budget Housing Cost to $10,000

The government is drafting a housing policy to develop low-cost housing projects where anyone with a regular income can own a home, a minister told the parliament.

“We are currently planning to reduce the price of budget housing to K10 million ($10,000),” deputy minister for construction U Soe Tint said.

Despite the term “low-cost housing”, apartments at those projects currently cost to the tune of $15,000-20,000.

The ministry and the Construction and Housing Development (CHD) Bank said they are in the planning stages of implementing a mortgage system that will allow the apartment buyers to pay off loans in instalments.

Currently, several townships in Yangon and Mon state are constructing budget housing projects as the government grapples to address the countrywide housing needs.

“Recently, the Department of Housing and Yangon City Development Committee (YCDC) started working to develop some budget housing projects. It is important that those houses go directly to the people who actually need it.

“Besides, the authorities need to make sure that those who buy apartments move in within one month. They also need to monitor the apartments to prevent buyers selling it off at a higher price,” an official from YCDC told Myanmar Business Today on condition of anonymity.

Myanmar’s real estate and construction sector in recent years has been bolstered by foreign investment and budget housing projects. As of January 31, Myanmar received $2.31 billion in FDI in real estate and construction sector. The FDI amount stood at only $715.5 million as of June 30 last year. 

However, the rate of illegal construction has also increased, leading YCDC to ease some restrictions, but also take action against illegal contractors by fining them or withdrawing their licences.

The committee also warned that there will provisions of more actions against illegal constructors under the upcoming Construction Law.

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