Myanmar’s first stock market was launched on March 25 and some businesspeople commented that existing investment in various industries, including real estate, has weakened.
Former deputy minister for finance Dr Maung Maung Thein also remarked at the opening ceremony of Yangon Stock Exchange that there could possibly be less investment in real estate sector.
Before the stock market was legally launched, local businesspeople invested their money in real estate, motor vehicles and gold. Now, businesspeople predict that because there is a new area to invest, the real estate sector could weaken and the prices could drop.
“I went to the Commodity Exchange Centre in the US for an excursion and found that at their stock exchange even coffee production companies have great potential for investment. So, people have not only one area to invest when stock exchange emerges, but many other areas as well. However, I think gold and real estate will keep working well even if the amount of investment drops,” General Secretary of Myanmar Gold Entrepreneurs Association U Kyaw Win said.
“Dealing of real estate has mostly been done in Yangon, Mandalay and the areas around Special Economic Zones, but buyers and sellers of real estate have been observing the recent situation and waiting for the policy of the new government to emerge,” he said.
“In the past, there were only a few ways to invest money – real estate or automobile. People think that they can make money in the new stock market but that’s not a given. You can lose money or gain money in the share market just like any other investment. But the enthusiasm with the emergence of the stock market we might see some sorts of drop in the real estate and automobile market,” said U Soe Win, country managing director of Deloitte Touche Myanmar Vigour Advisory Ltd.
Last year there was a rise in apartment construction with pre-booked contracts which caused a rise in the market, however, the market is pretty dormant now.
“There are still some buying and selling at will in the market. The price is up to the negotiation between the seller and buyer. If there are buyers, there will be deals. If there are firm laws regarding real estate, more people will be interested to invest,” U Kyi Soe, a realtor said.
From: Myanmar Times