Real es­tate sec­tor FDI ap­provals ac­count for big­ger share this year

The Myanmar Times - - Business - TIN YADA­NAR TUN tinyada­nar­tun@mm­times.com

MYAN­MAR’S real es­tate sec­tor is re­ceiv­ing a far larger share of over­all ap­proved for­eign di­rect in­vest­ment (FDI) so far this fis­cal year, ac­cord­ing to data from the Direc­torate of In­vest­ment and Com­pany Ad­min­is­tra­tion (DICA).

As of Au­gust 31, real es­tate had re­ceived 15 per­cent of to­tal FDI, ac­cord­ing to DICA. Across the whole of 2015-16 real es­tate ac­counted for just 7.7pc, the de­part­ment said.

To­tal ap­proved FDI in 2015-16 was US$728.6 mil­lion, of which 7.7pc was in real es­tate.

So far this fis­cal year there has only been ap­proved FDI in one real es­tate project, although the high level of in­vest­ment – $105 mil­lion – means it ac­counts for a larger share of the to­tal $701 mil­lion in ap­proved FDI.

Of­fi­cials from DICA said they will an­nounce the de­tails of that sin­gle project at a later date.

Seek­ing to lift build­ing stan­dards, Yan­gon City De­vel­op­ment Com­mit­tee re­cently sus­pended some high-rise projects in the city while it car­ried out in­spec­tions.

The Min­istry of Ho­tels and Tourism has also asked re­gional gov­ern­ments to con­sider de­mand for ho­tels be­fore ap­prov­ing any new projects in tourism hot-spots where they say there is an over­sup­ply of ac­com­mo­da­tion.

“Real es­tate is still a de­vel­op­ing sec­tor in terms of both for­eign and lo­cal in­vest­ment,” said U Yan Aung, gen­eral di­rec­tor of Asia Con­struc­tion. “It can be a good mar­ket given the high den­sity pop­u­la­tion in down­town Yan­gon, although the mar­ket has cooled slightly in the last two years.”

Yet more was needed to en­sure in­fras­truc­ture was bought up to scratch, he said, while low-cost hous­ing should also be a fo­cus for the in­dus­try.

So far this year the real es­tate sec­tor is the third-largest sec­tor for ap­proved FDI, be­hind the trans­port and com­mu­ni­ca­tions in­dus­try with $112.1 mil­lion and man­u­fac­tur­ing with $336.4 mil­lion, the data from DICA shows.

‘Real es­tate is still a de­vel­op­ing sec­tor in terms of both for­eign and lo­cal in­vest­ment.’

U Yan Aung Asia Con­struc­tion

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