Monday, March 11, 2013

Hong Kongers scared off by Myanmar property prices

Monday, 11 March 2013 19:17 Mizzima News

Hong Kong investors and companies looking at the business potential in Myanmar are being scared off by the country's soaring property prices, according to a South China Morning Post (SCMP) report.

Hong Kong factory owners, who are facing shortages of land and labor in the Pearl River Delta, are reportedly attracted by Myanmar's abundant and cheap labor force.

Following a visit to Myanmar last week with 160 Hong Kong delegates from a range of industries, Fred Lam, the executive director of the Hong Kong Trade Development Council, said the high land cost in Myanmar was unfavorable to manufacturers, but its backward infrastructure would create a huge opportunity for investors.

“For the next mission, we will bring along professionals from the infrastructure and power supply sectors as the opportunity is promising,” he said, speaking to SCMP.

Lands surrounding special economic zones (SEZ), such as Thilawa and Dawei, have dramatically increased in price due to high demand in recent months.

“The land business is becoming brisk along with the implementation of the SEZ,” said Soe Thein, a Dawei real estate agent, speaking to Mizzima last month.

He said, “In mid-February, lands of 20 feet by 60 feet on Mingalar Road cost some 100 million kyat (US $116,617), while 40 feet by 100 feet lands on Ye Yeik Thar Road cost around 200 million kyat ($233,235). Five joint lands of 40 feet by 80 feet in the region sold for a total of 140 million kyat ($163,265).”

The current prices are on par with Chinese prices, he noted.
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