Home MMBIZ News Property Prices ‘Should Stabilise’ in 2014

Property Prices ‘Should Stabilise’ in 2014

Despite a surge in prices in 2013, and the continued migration of expats into Myanmar amid the ongoing changes in the country, analysts predict that property prices will stabilise within the country this year.

“Property rental prices cannot rise much further because the cost of renting most types of accommodation reaches its highest level in 2013,” Ma May Htet Aung, managing director of Power 7 Real Estate told Mizzima.

One reason prices are expected to stay constant is that many of the condominium projects that began in 2013, and even late 2012, are expected to be completed this year, leading to a potential surplus in properties that should make rental and sale prices more reasonable.

Additionally, according to Property Report, the recently drafted Condominium Law is expected to make the acquisition of properties easier for foreigners.

Meanwhile, studies by global real estate firm Cushman and Wakefield, the improving global outlook is expected to spur property markets worldwide, with emerging Asian cities such as Manila and Jakarta in particular expected to benefit.

“The growing level of optismism and activity we are seeing in most regions has its roots in a belief that the global economy is set for calmer waters ahead,” said David Hutchings, research head of Europe, Middle East and Africa for Cushman and Wakfield’s.

“This is leading to an increase in risk appetites, which is manifest in a push to invest across borders,” he added. 

The company expects global property investment to increase by between 10 and 15 percent, reaching $1 trillion – up from $978 billion a year previously – for the first time since 2007. In the Asia-Pacific region, investment reached $439.2 billion, up about one percent from a year before.

The group expects increase of between five and seven percent in emerging economies such as Manila, Jakarta and Bangalore.

Additionally, Asian investors from China and Japan are expected to play a bigger role on the global property market, according to the firm.

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