Myanmar’s much-anticipated and long-awaited new Condominium Law will, in principle, allow foreign buyers and investors to own up to 40 percent of high-rise buildings in the country.
But the law, which was passed late last month, is widely considered by experts to be vague and could be contradictory to other existing laws within the country.
The new Act allows overseas buyers and investors to buy units on the sixth floor or higher, but they are not allowed to manage properties. This could be interpreted as being not able to rent them. They will also be able to acquire shared ownership of the land where the condo is built.
Many industry experts have viewed this latest move as an improvement over previous property laws, especially with the advent of AEC 2015 at the end of last year, where more Southeast Asian countries are expected to relax foreign ownership laws over the medium- and long-term.
Speaking to Dot Property Group Tony Picon, Managing Director of Colliers International Myanmar based in Yangon, said: “After the news of the new law it has gone quiet so more questions than answers.
“The 40 percent foreign quota is encouraging, but there are still many issues such as how this chimes with the current Companies Law,” he added.
Picon said the Companies Act is due to be amended to fit with the new property laws.
It’s clear the new Act needs clarification, but it has to be a step in the right direction – even though the number of condominiums in the country is extremely small compared with other Southeast Asia countries.
The new National League for Democracy was sworn in yesterday (February 1).
Main image: A rooftop penthouse for lease through Colliers International Myanmar at Dagon Centre in Yangon, Myanmar.
