MANDALAY PROPERTY PRICES EXPECTED TO DROP IN 2021
NEWS
Mandalay property prices expected to drop in 2021 Real estate in the Mandalay municipality will see a 5 percent to 25pc reduction in standard prices for the 2020-21 fiscal year, said U Wunna Soe, secretary of the Myanmar Real Property Development Association. "We, the real property organisations, have discussed with various authorities regarding property appraisal rates and we have reduced the standard prices in some areas this year,” he said, noting that market prices in the Mandalay municipality are reduced by 5pc,10pc and 20pc with respect to the areas they are in.
(Source: Myanmar Times, January 10, 2020)
RESEARCH VIEW | Hpone Myint Thu (Research Manager):
One should not be alarmed by this revision of benchmark land prices. Mandalay, in fact, is not the first to witness such downward correction in recent years. Colliers studies reveal that the Internal Revenue Department has also cut the benchmark prices in Yangon by the average of 20-26% since 2017. Looking closely, the indicative value of select properties in up and coming commercial and industrial districts turns out to remain well above the official taxation yardstick. Nevertheless, the recent adjustment in rental income of some of the revenue-generating properties as a result of pandemic disruptions, in Colliers view, may puzzle investors as well as asset holders in the near term. Given the frontier nature of the market, the patchy values quoted by some lenders with high-risk appetite may further add fuel to the existing complexity of property valuation. Rather, in times of determining the forced sale value of collaterals when bank forbearance periods expire, buyers and sellers alike may be perplexed by the lack of reliable and accurate property data in the country. Seasoned and accredited valuers might find a role to assist in it.
BRINGING BACK YANGON'S WALKING TOURS
NEWS
The coronavirus restrictions have affected many parts of the economy, from street vendors to large businesses. As the country has ground to a halt, one sector in particular has suffered from the lockdowns and travel controls. Many tourism activities were suspended in 2020, with numbers of local and international travellers having all but disappeared. Despite the pandemic some travel agencies in Yangon have been planning for a more positive 2021, when some of the restrictions are lifted or eased. Myanmar Walks travel agency is among those who are trying to resume, hoping to offer Yangonites enjoyable and engaging tours across Yangon.
(Source: Myanmar Times, January 11, 2021)
RESEARCH VIEW | Hpone Myint Thu (Research Manager):
Yangon is often known among the western travelers as a unique city in South East Asia with some of the finest architectural remnants of the colonial time. In fact, the walking tours in downtown central business district not only offer a glimpse of a once cosmopolitan city it also reminds one of the importance of walkable urban areas in ensuring the overall livability. Despite the increasing popularity of online food delivery platforms in a new normal, a complete departure from the centuries-old dine-in culture is highly unlikely as the city recovers gradually from the pandemic. Once a large majority of the population is inoculated and the restrictions are lifted, many are expected to return to restaurants and tea shops as before. The districts with amenities, facilities and public spaces close-knit within the walkable distance, in Colliers view, are likely to remain as the preferred destinations of choice among tenants, and so are the residential neighborhoods that are within the close proximity of the former. Besides, as the adoption of bike lanes proliferates further and the new circular railway materializes, the pedestrian-friendly premises near railway transits may even become the crucial urban cores at some point in time. Up until now, the walking tours have been limited mostly to the downtown area with heritage buildings and historical sites. Perhaps, that can be extended to other suburban areas of the city as they become more walkable in the future.
TAIWAN'S CATHAY UNITED BANK OPENS BRANCH IN MYANMAR
NEWS
TAIPEI (Taiwan News) — Cathay United Bank opened a branch in Myanmar’s largest city, Yangon, Wednesday (Jan. 6), in a move seen as a step forward under Taiwan’s New Southbound Policy. The office’s main aim is to assist Taiwanese businesses in investing in the rapidly developing economy of the Southeast Asian nation, CNA reported. Taiwan in 2016 launched its New Southbound Policy, targeting 18 countries in South Asia, Southeast Asia, and the Pacific, including Australia and New Zealand, to achieve closer relations in a wide variety of spheres, from trade and investment to culture and education.
(Source: Taiwan News, January 7, 2020)
RESEARCH VIEW | Hpone Myint Thu (Research Manager):
Cathay United was in fact one of the latest foreign banks that could secure operating licenses since April 2020. Alongside Cathay, Bank of China from Hong Kong, Mega International Commercial from Taiwan and Korea Development Bank from South Korea could also secure branch licenses last year. According to the Central Bank of Myanmar, Korea Development Bank, Mega International Commercial and Cathy United have commenced their operations as of this week and all three have their offices in Junction City Tower. In a way, the continuing entry and launch of new offices in Yangon manifests the sustained interest from international financiers in the Myanmar market in spite of the pandemic. The World Bank studies reaffirm it with the latest half-yearly forecasts indicating that the country may see its recovery as early as March 2021 if the virus is contained and restrictions are eased. The journey to a full recovery in upcoming months, however, may yet be lengthy and gradual with the lurking concerns as to the new virus strains. Much of what lies ahead, in Colliers view, will hinge upon the effective and rapid distribution of vaccine by the government and its partner stakeholders. All parties should work together to make this recovery smooth and speedy.
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