The free-fall of the local currency Kyat in recent months is having an impact on the real estate market as buyers keep putting their money into properties to hedge inflation, realtors say.
Kyat has fallen drastically since September last year – when it was trading around K970 for a US dollar – and was hovering around K1,150 last week.
Real estate agencies said they are witnessing an increase in dealings as the change in the currency exchange rate props up the market, which was going through a lull after experiencing three years of continuous boom.
U Sai Khun Naung, who owns a real estate agency in Yangon, told Myanmar Business Today, “Now, people do not dare to keep money in their hands because of the falling exchange rate. If they keep it, the value of their money will surely decrease. So, they are trying to put the money into buying hard assets.”
However, he said that average prices are not yet going up even if the market is seeing more activity. Land plots worth over K100 million are experiencing more sales, he added.
Properties around a major project, Yangon New Town (Myothit), has seen increased sales after the regional parliament re-approved it last month.
U Nay Min Thu, director of iMyanmar Online Media and Advertising, which caters to real estate firms, said that prices of lands around the project has now increased by about K10 million following the news of approval.
The new Yangon town was originally planned on 12,150 hectares of land area which called for an investment of $15.21 billion, and 70 percent of the project is targeted to be completed within three years.