Since the Yangon Regional government set land prices per square metre in September, the Yangon real estate market has slowed down, according to real estate traders in the city.
With spiralling land prices nationwide, the government introduced a scheme to try and tackle the issue, by setting a maximum price on land, depending on the township in which the property was located, with Bahan township in Yangon being one of the most expensive.
“In Yangon, many selling and buying properties fell silent when the news came that the government was fixing maximum prices for land,” said U Than Oo, chairman of Man Taing Real Estate Service Co. “We have watched the market since then, and it remains slow,” he added.
According to Deputy Finance Minister U Maung Maung Thein, the fixed land prices was set not to control the high price, but to allow the government better control taxes.
Market experts however have said that indirectly, the scheme has ensured that high land prices, which have been a barrier to many foreign investors coming into the country, have been curbed.