Property prices flat despite green light on Dala Bridge project
Source: The Myanmar Times
Date: 18 January, 2018
Despite the government's approval of the Korea-Myanmar Friendship Bridge or Dala Bridge, real estate prices in Dala township have been flat, according to real estate agents.
"The bridge project is confirmed so land owners in Dala are hoping to attract buyers. But the market has yet to take notice. In the meantime, we can't offer high prices because there is no buyer," said Myanmar Real Estate Services Association's general secretary Daw Moh Moh Aung.
Construction of the Dala Bridge, which will connect Bone Gyi Street in Lanmadaw township, downtown Yangon and Bo Min Yaung Street in Dala township, is scheduled to start in April.
The steel suspension bridge will be 6,144 feet in length with a design load of 75 tonnes covering a 320 ft wide waterway. The bridge will be 49 meters high, enabling vessels of 15,000 dwt to pass beneath.
When complete, the bridge will shorten the time take to travel between Yangon and Dala. Currently, most people travel to and from downtown Yangon and Dala by boat or ferry. "So, land prices around Dala should increase to some extent if the basic amenities are available," Daw Moh Moh Aung said.
Real estate agents are surprised by the lack of interest, too. "In the past, property prices used to go out of control whenever there were rumours of government projects but the market has been quiet in recent years and since the Dala Bridge project was announced, we have not seen any surge in prices like before, said Ko Zaw, managing director of Dala Real Estate Agency.
Currently, land between 20ft and 60ft is now being offered at around K40 million-K50million. About two years ago, property prices had surged to almost three times their current value. "The market saw a sudden surge back then but prices have fallen since," he said.
Demand for farmlands in the area has taken an even bigger hit. In 2014, the price of farmland located along the main road in Dala reached K100 million an acre. Now though, the same farmlands are being offered for about half the price.
Meanwhile, farmlands located away from main road are being offered at between K15 and K20 million an acre, Daw Moh Moh Aung said.
The Dala Bridge project is expected to cost $168.2 million of which $137.8 million will be funded via a loan from South Korea's Economic Development Cooperation Fund. The Myanmar government will contribute the remaining $30.341 million.