Wide-room apartments preferred in buyers’ market
WITH supply outweighing demand in the current real estate market, only transactions involving wider rooms are taking place, real estate agents said.
Currently, supply is greater than demand in the apartment market. For this reason, buyers have more options and most of them more prefer wider rooms, said U Yan Aung, general manager at local firm Asia Construction.
“The property market is dull owing to a lack of demand, which creates more options for buyers,” he said.
These days, buyers are not just considering room size, they are also basing their purchasing decisions on location, proximity to basic amenities, availability of installment payment schemes and level of interest rates.
Rather than buying apartments for investment purposes, most buyers are looking for homes to live in, therefore they are weighing factors such as room size and taking that into account in their decision-making, said U Yan Aung.
“In the past, people bought rooms for speculation or renting out. Nowadays though, land prices have stabilised, so most buyers in the market now are looking for property to live in. Therefore, they prefer larger-sized rooms, even though the prices are different,” he said.
In Yangon, the majority of such large-size rooms are located in South Okkala township. “The land in South Okkala township is wider than other townships. For example, land in Thingangyun township are only between 25 feet and 50ft whereas land in South Okkala is usually between 40ft and 60ft,” he said.
Property in Dagon township has also been in demand. According to U Yan Aung, a large number of 1,000 sq ft apartments are now under construction in North Dagon and they are selling well in the market, U Yan Aung said.
“There are more wide apartments being built in North Dagon where the land price is not as high as in other townships. North Dagon is not as crowded as Yankin and South Okkalapa yet. But North Dagon aparments have been attracting the buyers.” he said.
U Myint Thein, who bought a flat in North Dagon and is now living there, said he finally opted to buy in North Dagon because of the larger rooms. “As we have family members who stay at home all day as well as those who go out to work, we bought a more spacious apartment,” he said.
For him, the convenience of living in a downtown apartment was less of an appeal than that of the larger and cheaper ground-floor flat located in the outskirts.
This emerging trend could give rise to many more wide-room apartments in the future. As developers have to give priority to buyers, they are often inclined to build and design new apartments based on current market demand, said U Aung Min, director of Myat Min Construction Co.
Previouly, there were less developers and more buyers. Now though, there are more developers than buyers. So, developers have to change and adapt to focus on what buyers want.
“To attract buyers, factors such as the length and width of the flat as well as interior design are being taken into account when developing new apartment properties. Right now, an ordinary apartment is just as big and well-furnished as those you can find in condominiums,” U Aung Min said.
Small downtown apartments are losing their appeal as buyers favour larger and cheaper flats in the outskirts.