Building contruction and housing sector in myanmar 2014

The Current Situation and Future Trendof

BUILDING CONSTRUCTION and

HOUSING SECTORin Myanmar

U KHIN MG THEINChief Engineer (Buildings)

Public Works, Ministry of ConstructionMyanmar

March 2014

The Republic of the Union of MyanmarMinistry of Construction

1

GOALS


Building Sector

• To achieve safe and quality built environment in Myanmar

Housing Sector

• To upgrade living standards and provide adequate housing for all the citizens

2

BUILDING CONSTRUCTION IN MYANMAR


CLASSIFICATION OF BUILDINGS

1. Assembly2. Business3. Educational4. Factory and Industrial5. Hazardous6. Institutional7. Mercantile8. Residential9. Storage10.Utility and Miscellaneous

Ref: 2012 MYANMAR NATIONAL BUILDING CODE (Provisional)

Most of the Large Scale Buildings had previously been constructed by the public sector, mainly by the Public Works. 3


Building Airfield

Public Works

Bridge

Department of Human Settlement and Housing

Development


4

Before 2011

Construction and Maintenanceof Large Scale and National Level Buildings

Some Buildings Constructed by the Public Works

5


After 2011Undertaking and Regulating Building Construction

• Professional Regulatory Authority for Engineering

• Professional Regulatory Authority for Architecture

• Myanmar Engineering Council Law passed

• Myanmar Architect Council Law in drafting and approval stage

• Provisional Myanmar Building Codes issued

• Updating Analysis of Rates

Regulating Building Construction

6

Architectural, Structural, Water and Sanitation and Electrical Drawings as well as Construction carried out by the Public Works .

Architectural, Structural, Water and Sanitation and Electrical Drawings prepared and issued by Public Works, however Construction Tendering and Management undertaken by relevant Ministries.

Design Coordination, Construction Management and Quality Control undertaken by the Public Works

Undertaking Building Construction


Cost verification and approval of buildings to be constructed with the Government Budget

Setting, Controlling and Approving Internationally acceptable Standards and Specifications for Buildings to be constructed with Local and Foreign Investment

Preparing and Issuing Architectural, Structural, Water and Sanitation and Electrical Drawings and Quality Control in construction of the projects when assigned by the Government

Envisaged Future Role in Building Construction

Need for Construction Industry Law

Designated Building Construction Authority7


Setting Standards and Regulating

Design Stage- Setting and Regulating Building Standards and Specifications- Setting Standards and Regulating Building Materials- Setting Standards and Regulating Human Resources

Construction Stage- Setting Standard Procedures and Regulating Building

Construction- Setting Standards and Regulating Safety Measures in

Building Construction- Setting Standards and Regulating Human Resources

8


Pioneering Modern Technologies

Technologies for Mass Production- From Cast in situ construction method to prefabricating

( precast or factory production)- Other Mass Production Technologies

Upgrade to high technology- Precast- Prestressed- Postension- etc.

Needs- Quality Building Material Provision- Technical Knowhow- Capacity Building of Human Resources 9


Key Challenges in Building Construction

• Expected boom in building construction due to opening up of the economy

• Lack of competent regulations and quality control of building design and construction

• Lack of legal system in construction industry

• Lack of Designated Building Control Authority

• Need to upgrade Building Technology

10


HOUSING SECTOR IN MYANMAR


Public WorksPublic Works Department of Human Settlement and Housing

Development

11

Low Income

Middle income

High IncomeUpper-middle and high income households live in housing built by themselves or built by the private sector

Middle income households often occupy formal, but low quality housing

Low-income households live in slums and squatter settlements, or in low-cost rental housing; the informal sector is the main provider

HOUSING PROVISION IN MYANMAR

12


Traditional 1920-1947 1950-1970 1980-2000 2000-2011

Shelter/SpaceLocal needs

Colonization& Urbanization

Public HousingSocial needs1951 NHB Act

Market Orientation &PPP in Housing

Post-Independence

Pre-Independent

Lack of Housing Policy for Low income people and Rural Housing

Un-sustainable Provision and Delivery System in Public HousingLack of integrated Land use and Transport Planning

Satellite Town Development

Satellite Towns ,Industrial zones &HousingDevelopment

DHSHD(1990)

Housing Department(1972) Private Sector

Participation in Housing Delivery

13


Key Challenges in Housing Development

• Expected growth of population from around 60 million to around 90 million by the year 2040

• The housing market is expected to grow continuously in the near future.

• Increase in housing demand due to• increase in per capita income and saving capacity

due to the national development projects and changing political and economic situation;

• increase of foreign investment in industrial and service sectors as well as agricultural mechanization resulting in more urbanization.

14


• Size of Main Cities• Yangon= 5.9 million• Mandalay= 1.5 million• Naypyitaw= 0.9 million• 27 Cities= over 0.1 million(Urban Poverty rate = 22%)

National Population growth rate=1.3%Urban population growth rate= 2.9%Rural urban ratio= 68: 32

Myanmar Urbanization

Source: UNHabitat, CSO.

Myanmar Center of interest for the international investor

• With around 12 million households in Myanmar, calculated at household size of 4.7, an annual demand for housing is around 300,000 units.

• Development of sustainable housing financing system;

• Resource development in modern building materials, construction technologies, machineries, equipment and promotion of construction industry for mass production of housing.

16


Key Challenges in Housing Development

Programmes:

(1) Developing and carrying out adequate and affordable housing delivery schemes in cooperation with region and state governments;

(2) Promotion of modern building materials and mass production construction technologies for housing delivery;

(3) Cooperation with region and state governments in allocation of reserved project land for public housing and staff housing to be implemented in future in line with the National Housing Policy;

Housing Development Strategy 4: Development of adequate and affordabel housing delivery systems

Housing Policy

17

Programmes (contd.):(4) Carrying out pilot housing projects allowing low income

groups ownership of housing through housing loans and cross subsidy systems;

(5) Carrying out estate redevelopment schemes of over aged public housing and staff housing estates through public private partnership system (PPP) to be implemented in cooperation with region and state governments;

(6) Systematic production of affordable housing units by various sectors such as government organizations, co-operatives, public and private sectors within 2013-2014 to 2030-2031 budget years;

Housing Development Strategy 4: Development of adequate and affordabel housing delivery systems

18

GOALS AND STRATEGIES OFBUILDING AND HOUSING SECTOR IN MYANMAR

Housing Policy

To upgrade living standards and provide adequate housing for all the citizens.

• To provide affordable housing for middle and low-income groups throughout the country.

• To establish housing finance mechanism to promote affordability and house ownership for the people.

• To promote construction industry development and mass production techniques minimizing construction cost and time.

• Cooperation with regional governments in implementing large scale public housing and low cost housing projects through urban development approach.

• To draft required laws and regulations ensuring provision of safe and adequate shelter.

– Building Codes – Condominium Act – Spatial Planning Law– Housing Development Law

19

In Yangon, 36,000 Housing Units have been built from 2005 to 2010 for 5 years and , average 7,200 units of housing were produced annually.

The demand for housing is 3.5 times of provision during last decade while average increased households per year is about 26,000 to 30,000 .

> 70% of Residential units are produced by the private sector and much more profit orienting and targeting on high income group.

Mandate on Housing Policy and Housing Provision (social as well as market demand) is essential for balanced and sustainable growth of socio-economic development

Housing Demand and Supply

30% of City population is living in slum and squatter which is needed for improvement of living standard as well as proper housing solutionMost important gap is very high cost for housing and people’s affordability of very low income levelGovernment sets the priority focus on affordable and low cost housing provisionHousing Mortgage and Financing Mechanism is now established and planning to be practice Promotion of Construction Industry and its developmentand establishment of Myanmar CIDB for quality buildingEnactment of Legal framework for Building and Property market development

Housing Provision by Public Sector

MAIN PROVIDER - DHSHD’S Housing DeliveryMAIN PROVIDER - DHSHD’S Housing Delivery

.Excess housing demand induce housing price increase.

2013-2015 Targeted Production

Affordable Housing 20,000

Low Cost Housing 3000

Urban Redevelopment Housing

9000

Total Unit -53,816 no. (1993-2012)

Targeting on Low-Middle income group

Affordable and Rental Housing Scheme

20 years Long-term Development Plan in Housing Sector(2011-2031) - one million housing scheme 2013-2016 – 100,000 Housing Scheme

Location - Regions/State’s capital cities & secondary townsTarget Group - Priority for government servants and low-income peopleDelivery - income level & status accordinglyFinancing - Housing Mortgage Loan for 20 years

- Housing Financing System ( Bank, Finance Institution) Investment - Government Budget/ Revolving Fund/ PPP & Loans, grantPlanning – Township Development with neighborhood conceptInfrastructure - water, sanitation , electricity supply, waste management,

road & drainageOperation & Management – DHSHD + ward council + community 23

Housing Estate Redevelopment SchemeOld Housing Estates (DHSHD)

10 Housing Estates in Yangon (450 acres)3 Housing Estates in Mandalay29 Housing Estates in Other Cities

Redevelopment Program through PPP

Proposed redevelopment project at Botataung Housing in CBD

Proposed redevelopment project at Shwegon Housing

Government Rental Housing for Government Servants Capital cities - 2000- 2500 units /years (average)Government Budget

Rental Housing Scheme in Regions and States

24

Housing Development Plan (2040)Designate Development Promotion Area in Smaller Urban centers around YangonUrban Densification Area through Upgrading Existing Estate Redevelopment Area

Source: DHSHD.MOC

Proposed Yangon City Urban Development Plan . DHSHD. MOC

Yangon City Concept Plan (2040)

Area - 598.75 sq-kmPopulation (2010)- 5.0 - 7.023 millionPopulation (2040) - 10 – 12 millionGrowth Rate - 1.69 % (2010)

YANGON CITYECONOMIC HUB & DEVELOPMENT POLE

Housing Estate Redevelopment Scheme

U Wizara, Dagon 51th Street, BotataungPyinmapin, MingaladonGyogone, InseinPyitawthit, PazuntaungYankinShwegondine, BahanKantawkalay, MingalataungnyuntWayluwun, SanchaungThuwuna

• Public Rental Housing Estates • 10 Housing Estates in Yangon (450 acres)• 3 Housing Estates in Mandalay• 29 Housing Estates in Other Cities

• Redevelopment with the participation of private sector.• Mixed development for residential and commercial to utilize scarce and valuable land

effectively.• 2013-2015 , 10,000 housing units are planned to produce.

PLANNED HOUSING PROVISION OF DHSHD

Type of Housing Project(no) Unit(no) Location

Low Cost Housing 7 11868

Shwe Lin Pan, Hla ing TharyarMingalardone, DagonSeikkanDagon East

Affordable Housing 7 26142

Pi lot Project(19600)-Dagon SeikkanHla ing tharyar, Dagon SouthShwe Pyi Thar

PPP Project (DHSHD)

Type of Housing Project(no)

Unit(no) Location

Estate Redevelopment

(PPP)2 632

3529

Link RoadBotahtaunghousingCOMMERCIAL

350000 sq ft181440 sq ft

Other (PPP) 30

7 407

MingalartaungnyuntBotahtaungTimesquareHletan, Thanlyin,others, CBD

Total 42578

HOUSING PROJECT IMPLEMENTING AND PLANNING by DHSHD & YCDC THROUGH PPP(2013-2015)

HOUSING PROJECT IMPLEMENTING AND PLANNING by DHSHD & YCDC THROUGH PPP(2013-2015)

HOUSING PROJECT DEVELOPED BY YCDC (2013-2015)

50,000 Housing Units Production

Botataung Housing Redevelopment Projectin 51ST Street CBD

Estate Redevelopment Project at Link Road, Shwegon Housing

Rental Housing Scheme in Regions and StatesEstate Redevelopment Scheme. DHSHD

Existing Rental Housing Unit -40 no.New Development Unit -100 no.

Resettlement for existing rental unitsDevelopment of condominium and Commercial PPP project with Local Developer

High Restriction and Development Control Zone Near Shwe Dago Pagoda

EXISTING HOUSING ESTATE (1956)

• School• Sports Ground and Recreation Places• Market and Commercial• Bus Terminal with Commercial Shops• Car Parking• Clinic, Police Station, Fire Station etc.• Physical Infra• Waste water Treatment

1. Area – 220 Acres (89.03 Ha.)

2. Parcels – 11 Nos.

3. Buildings – 49 Nos.

4. Floors – 18 Storeys

5. Units/Bldg – 400 Nos.

6. Total Units – 19600 Nos.

7. Unit Area – 600 sft

8. HH size – 4.5 p /hh

9. Population – 88200 p.

Ayeyarwun and Yadanar Housing Project

29

(1) 4U 8S Apartment Building - ( 5 ) nos

(2) 4U 9S Condominium Buildin - ( 6 ) nos

(3) 1U 4S Showroom& Office - ( 5 ) nos

(4) 3 Storeyed Admin Building - ( 1 ) nos

Total 417 housing and Shophouse units

Total Floor Area - 528310 sq.ft

Satetara Mahi Estate Redevelopment Project, Mandalay

Under Supply on appropriate Residential and Commercial propertymarket

Shortage in High Quality Development (quality offices, apartments,hotels, and retail spaces are all in short supply)

Undergoing rapid transformation, including inflow of internationalinvestment

Significant demand for Land and quality space in Yangon

Developers are focus on high-end projects in Yangon

Flight for changes of Quality in the Real Estate Market

Need for enactment of Legal framework for property marketdevelopment

CURRENT SITUATION – PRIVATE SECTOR

Driving Demand for Quality

LIST OF HIGH –RISE BUILDING SUBMITTED TO CQHP(2013-2014)SOURCE:COMMITTEE FOR QUALITY CONTROL OF HIGH RISE BUILDING CONSTRUCTION PROJECTS

No Project Storey company Location

1 Pyay Garden Office Tower 1+11 Ze Ga Bar Sanchaung

2 United Tower 10 12 United Construction Bo Ta Htaung

3 AMBO Tower (Bo Aung Kyaw) 12 Naing Group Kyauktada

4 U Myint Thein+1 10 Yadanar Myaing Latha5 Diamond Tower 12 Yadanar Myaing Pabedan6 Lucky Condominium 12 Naing Group Bogyoke Street

7 M.T.P Kamaryut Tower 11 MTP Constriction Kamayut

8 Aye Yeik Thar Condominium 1+10 Tet Lann Construction Bahan9 City Shine Tower 12 City Shine Construstion Kyauktada

10 Classic Stand Condominium B+12 Naing Group Pabedan


12 Bo Soo Pat Building 12 Yadanar Myaing Pabedan

13 Pansodan Business Tower 12 1/2 Naing Group Kyauktada

14 Hnin Si Gone Condominium 12 1/2 Naing Group Alone

15 Shine Tower 12 Shine Min Ga Lar TaungNyunt

16 Kyaw City Tower 12 1/2 Kyaw City Kyauktada

17 Kyaw Condominium 12 1/2 Motherland Kyauktada

18 Myanmar Shweoudaungmin 12 1/2 Myanmar Shweoudaungmin Pabedan

19 Hotel Shwe Gone Daing 2+12 1/2 December Shwe Gone Dine

20 Strand Condominium 12 1/2 Golden Flower Latha

21 United Vision Tower 12 Shwe Mee Thee Shwe Bone Thar

22 Green Lake Condominium 2+12+P Yadanar Myaing Min Ga Lar TaungNyunt

23 3rd Street Condominium 12 1/2 Naing Group Lamadaw

24 Lanmadaw Tower 12 1/2 Myanmar Top Power Latha


26 MEI Business Tower 12 1/2 Fatherland Kyauktada

27 Uniteam Project 12 Lay Thi Sanchaung

28 Anna War Min Tower 2 12 Anna War Min Latha

29 Ngwe Gant Gaw(LanmadawTower) 12 1/2 Shwe Naing Ngan Latha

30 19th street Project Tet LannConstruction Kan nar street

31 30th street Project 12 Naing Group Shwe Bone Thar

32 Hman Cho 12 1/2 Naing Group Pabedan

33 Mandalay Street & Bo Min Young St Project B+12 1/2 Naing Group Min Ga Lar Taung

Nyunt

34 M & A Office Tower {B(2)+17}And{B(2)+7}

Myint& Associate Company Kamayut

35 KBZ Residence 11 1/2 Majestics Kamayut

36 Corner of Shwe Bone Thar&Anawyahtar St 12 1/2 Naing Group

Corner of ShweBone Thar&

Anawyahtar St37 Khon Zay Tan Tower 12 1/2 Arkar Kyaw Family

Group Con Zay Dan St

38 Shine Business Tower B(2)+12 Shine Min Ga Lar TaungNyunt

39 Pacific Hotel B+12 Yadanar Myaing Min Ga Lar TaungNyunt

40 Soe San Tower 12 ½ Soe San Bo Ta hatung

41 Star City 12 Than Lyin Estate Development

Near ThanlyinBridge

42 No.227/229,Seik Kan TharStreet 12 1/2 MTM Kyauktada

43 Shwe Gone Daing Hotel(2).Bahan B(2)+21 December Bahan

44 Hill Top Condominium 16 Shwe Taung Alone

45 12 Stories Building 12 1/2 Motherland Kyauktada

46 Orchid Condominium B(2)+22 Taw Win Alone

47 DEC Tower (A) 27 MGW Bahan

48 PME Tower B+12+OpenShed

Peace Myanmar Electric Alone

49 30th street B+12+P Naing Group Pabedan

50 Sedona Extension B+30 Straits Green Field Yankin

51 Twin Centro Condo 15+Mezzanine Floor

Shwe TaungDevelopment Sanchaung

51 DEC Tower (A) 27 MGW Bahan52 B(2)+18 M & A Kamayut B(2)+18

LIST OF HIGHRISE BUILDING SUBMITTED TO CQHP(2013-2014)SOURCE:COMITTEE FOR QUALITY CONTROL OF HIGH RISE BUILDING CONSTRUCTION PROJECTS

53 Kanbawza Tower(KBZ ) B(3)+16 1/2 Naing Group Sanchaung

54 Diamond Inya Palace R.C.C (35) Mandalay Golden Wing Ma Yan Gone

55 Traders Square B(2)+20 Mandalay Golden Wing Kyauktada

56 Malikha Condominium R.C.C (12 1/2) Shwe TaungDevelopment Thingankyaun

57 DB Housing B+12 1/2 Shine Pabedan

58 Hotel Alinker(Jasmine) B+21 Shine Sanchaung

59 Yangon Garden Hotel B(2)+12 Family Business Group Tarmwe

60 Garden Park Hotel B(2)+27 - Mandalay

61 Ruby Hotel-1 Penthouse R.C.C+21

Capital Development Hlaing

62 Diamond Valley Rise 27 Aye'sFamily Bahan

63 AMC Tower B(3)+27,S.C Asia Metal Kamayut

64 Junction City - Shwe Taung Development

Bogyoke Market &lay har pyin

65 Crown Condo B(2)+16,R.C.C Crown Advanced Alone

66 HAGL 27 Hoang Anh Gia Lai Myanmar Set Mhu 1

67 East Race Course(ERC) B(3)+20,R.C.C Naing Group Tarmwe

68 Atrium Hotel B(2)+(13 1/2 ) Yadanar MyaingCorner of Pansodan

Upper &Bo Min Gaung road

69 Asia World Tower B(2)+32 Asia World Lamadaw

70 Junction Square 19+Basement,22+Basement

Shwe TaungDevelopment Kamayut

71 Paragon Residence 27 Resources Group Alone

72 Yankin , Sayansan 22 Mandalay Golden Wing Yankin

73 Ruby -2 and Ruby -3 21 Capital Development Hlaing

74 Naing Office Tower(2) B(2)+12,R.C.C Naing Group Sule

75 9 Hotel B(2)+22 U Tin Win (Owner) Alone

76 Dragon Empire Const;(DEC-Tower B) 21 Mandalay Golden

Wing Bahan

77 Kantharyar Consortium B(2)+27 Asia Myanmar Min Ga Lar TaungNyunt

78 KER , Kabaraye ExcecutiveResidence B(3)+29 Ever Seiko Ma Yan Gone

79 Time City B(3)+23 Crown Advanced Kamayut

80 Five Star Hotel B(2)+24 Hoang Anh Gia Lai Myanmar Set Mhu 1

81 Daw Khin Khin (Owner) B+14 Aye Yeik Mon Alone

82 313,Pyay Road Project 16 Myanmar Seilone Sanchaung

83 KBZ Tower-Revised B(3)+16 1/2 Naing Group Sanchaung

84 Naing Office Tower(1) B(2)+12,R.C.C Naing Group Sule

85 Shangri La Hotel 4-Storey Podium+21 Shangri La Yangon Min Ga Lar Taung

Nyunt

86 Merchant Suite B+19 Naing Group Capital Bo Ta Htaung

87 Hill Top Vista B+14 Shwe TaungDevelopment Alone

88 Chatrium Hotel 13Chatrium Hotel

Royal Lake yangon

Tarmwe

89 Condominium 18 Ta Kaung Bwar Hlaing

90 Golden CityR{33x9}buildings

O+S{30x1}buildingsH{4x1}Buildings

Golden Land Real Estate

DevelopmentYankin

91 U Kyi Soe B(3)+28

PinyaManufacturing

Myanmar& Myanmar

Mayson Industries

Bahan

Residential - 15 no.Condominium - 32 no.Hotel - 14 no.R+Office Tower - 30 no.High rise Bldg. 20 storeyed and above (53) nos.30 storeyed and above (15)nos.

INNER URBAN AREASanchaungAhlone, KyiMyinDineKamayutTamweYankinMingala Taung Nunt

BahanMayangone

List of High Rise Building Submitted to the High-Rise Control and Monitoring Committee of YCDC Residential Commercial Hotel

Building List Approveded by Committee9 - 12 1/2 storeyed 16 - 3

13 - 32 storeyed 31 2 4

Building List on Going for Submitting to Committee9 - 12 1/2 storeyed 1 - -

13 - 32 storeyed 3 - -Building List , Change design for Resubmitting to

Committee9 - 12 1/2 storeyed 17 - 1

13 - 32 storeyed 24 - -Building List, To Reduce Levels Directed By

Committee9 - 12 1/2 storeyed - - -

13 - 32 storeyed 6 - -

Building List, To Inspect From Committee9 - 12 1/2 storeyed - - -

13 - 32 storeyed 8 - 2Total 106 2 10

High rise Bldg. 20 storeyed and above (53) no.30 storeyed and above (15)no

Location Map of Residential and Commercial Building Development, Yangon City Inner City Area

No. of Building (up to 8 storeyed) Issued for Permission (YCDC) (2014-3months)

0

500

1000

1500

2000

2500

Jan(2014) Feb(2014) March(2014)

Total Building

Total Units

Month

no of building

(6-8 ) storeyed

Unitsno of

building<6 storeyed

Units Total Building

Total Units

Jan(2014) 75 736 238 842 313 1578

Feb(2014) 82 743 341 1298 423 2041

March(2014) 14 171 64 265 78 436

Total 171 1650 643 2405 814 4055

Housing Unit for 1st 3 months in Yangon - 4055+1500---- 5000 unitsEstimated Yearly Production - 20000 units (apprx) (2014) (Private Sector)Old Satellite Town and old suburban area are the most significant in housing Activities.

Source: Building Department , YCDC

MayangoneSouth OkkalapaThingangyunThaketa

2011 - 2013 8600 no. of Building Units

Number of buildings permitted by Building Department from 2011 to 2013 (YCDC)

Sr. No.

ParticularsTotal Permitted Enterprises

No. US$ Total (Kyat)

%

1 Construction 60 423.51 733314.00 16.752 Power 9 421.88 455383.76 10.40

3 Manufacturing * 644 1534.45 1210989.00 27.66

4 Others 33 578.97 520730.76 11.90

5 Real Estate Development

35 176.33 148781.96 3.40

6 Transport 24 450.35 399151.18 9.127 Liverstock & Fisheries * 61 102.93 26375.46 0.608 Mining 52 34.02 13007.92 0.30

9 Hotel and Tourism 40 334.81 568420.04 12.99

10 Industrial Estate 3 80.34 300712.79 6.87

11 Agriculture 5 2.23 547.90 0.01

Total 966 4139.82 4377414.77 100

0200400600800

1000120014001600

MYANMAR CITIZENS INVESTMENT BY SECTOR AS OF (28/2/2014)

No.

US$

MYANMAR CITIZENS INVESTMENT BY SECTOR AS OF (28/2/2014)

0

1000

2000

Mar(2011) August(2013) February(2014)

Foreign Investment in real estate Mar2011,Aug2013,Feb2014

Hotels & Tourism Other real Estate

Sr. No. Particulars

Existing EnterprisesNo. of

Enterprises

ApprovedAmount (US$ in

million)

Percentage(%)

1 Power 7 19284.43 42.522 Oil and Gas 115 14372.272 31.693 Manufacturing 317 3736.29 8.244 Mining 69 2862.424 6.315 Hotel and Tourism 51 1797.921 3.966 Real Estate 22 1229.150 2.71

7 Transport & Communication 18 1217.016 2.68

8 Livestock & Fisheries 28 365.974 0.819 Agriculture 13 203.02 0.4510 Industrial Estate 3 193.113 0.4311 Other Services 15 54.39 0.1212 Construction 2 37.767 0.08

Total 660 45353.78 100

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FOREIGN INVESTIMENT OF EXISTING ENTERPRISES AS OF (28/2/2014)

(BY SECTOR)

No. ofEnterprises

Foreign Investment of Existing Enterprises as of (28/2/2014)(BY SECTOR)

FDI IN REAL ESTATE SECTOR

LAWS RELEVANT TO INVESTMENT IN BUILDING AND HOUSING DEVELOPMENT

THE FOREIGN INVESTMENT LAW (THE PYIDAUNGSU HLUTTAW LAW NO 21/2012) 2nd November, 2012

MYANMAR INVESTMENT COMMISSION NOTIFICATION NO. 1/2013 Nay Pyi Taw (31st January, 2013)

•Classification of Types of Economic Activities

•List of Economic Activities under Prohibition

•List of Economic Activities to be allowed only in the form of Joint Venture with Myanmar Citizens


37

MYANMAR INVESTMENT COMMISSION NOTIFICATION NO. 1/2013 Nay Pyi Taw (31st January, 2013)

With the Recommendation of the Ministry of Construction•Establishment of international standard golf courses and resorts•Establishment, sales and lease of residential apartments / condominiums•Construction and sales of office / commercial buildings•Establishment, sales and lease of residential apartments in residential areas connected to industrial zones•Establishment of affordable housing•List of Economic Activities Permitted with the recommendation of the Ministry of Construction

•Construction / renovation and lease of office / commercial buildings


38

Principals • Share Contribution-

– Local partner contributes land use right as equity – FDI contributes construction cost, technology and

marketing

• Projects can be proposed to Myanmar Investment Commission together with EIA/SIA through the process of negotiation.

• Joint Venture Company will be formed after receiving investment permit of Myanmar Investment Commission.

• Profit distribution : Dividend will be distributed as per share ratio.

Investment Procedures for Foreign Developer in Myanmar

Promoter has to submit comprehensive proposal together with Attorney General Office’s comment

through DHSHD and Ministry of Construction according to the Foreign Investment Law

Signing JV agreement / BOT contract and Lease agreement and commence the business.

Investment Proposal Appraisal Team

Myanmar Investment Commission (Permit Issued)

Land availability need to confirm first.

Future challenges and opportunities

• To provide quality building and services for consumers who

has different affordability and taste is become crucial.

• Reliability of developers for their planning, design, and

technology to secure environment and social impact

• Capacity of constructors (engineers and technology)

• Issues on Residential & Commercial land Requirement for

Future Development – Land Price and Speculation of Land

– Planning and Legal Issues

THANK YOU FOR YOUR KIND ATTENTION!


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