Developers say growth inhibited by lack of amenities
July 26 - August 1, 2010
CROWDED, congested, expensive downtown Yangon is likely to stay that way for the foreseeable future, real estate professionals say – because housing development in the outer townships is stifled by lack of infrastructure and amenities.
And the increasing concentration of the population in the city centre could lead to many more high-rise buildings downtown, some builders believe.
To be sure, the quality of infrastructure is poor enough even in some downtown areas. The best conditions in the city’s 33 townships can be found in Dagon, Bahan, Kamaryut, Mayangone and Tarmwe townships.
If there is a future for development outside the centre, it is in outer-city townships like Insein, Hlaing and Thaketa, rather than more distant locations. “If the city expands to Htauk Kyant, 22 miles (about 35 kilometres) from Yangon, there will be no buyers even if we sell at a loss, because of the lack of infrastructure.
According to U Ko Ko Htwe, a member of the Myanmar Construction Entrepreneurs Association and vice chairman of the National Development Committee Group, the concentration of infrastructure in the centre could lead to vertical development – an increase in the number of high-rise buildings over the next few years, as Yangon’s population grows from its present level of six million to a possible 10 million.
U Ko Ko Htwe said: “Developers operating downtown don’t have to wait for new infrastructure,” he said, adding that Mingalardon, Insein, Yankin, Hlaing, Sanchaung, Ahlone, Kyeemyindaing, Thaketa and Thuwanna townships had plenty of room for replacing existing stock with new high-rises.
“Taller buildings can meet the growing demand better than developing outer townships like North and South Dagon, Hlaing Tharyar, Shwe Pyi Thar and Dawbon,” he said, noting that the price of downtown land was 10 times as high as in the outskirts.
U Ko Ko Gyi, director of MMB construction, said even though the city should expand, priority should go to solving the city’s problems, including rubbish collection and sanitation. “It’s equally important to develop infrastructure in remoter areas to encourage people to move from congested areas downtown,” he said.
“Infrastructure development is worse in outlying areas, which is why developers are very reluctant to build there. Obviously developers prefer to build downtown, Hlaing and Kamaryut than in Hlaing Tharyar and Shwe Pyi Thar.”
“Sanchaung is far more attractive than North Dagon from the point of view of convenience for work and transportation,” he said.
Daw Tin Myo Aye, 34, who moved from Latha to Ahlone a year ago, says she is happy there.
“Access to shops, schools and hospitals, is easier, several bus routes are available, and I can reach most townships within a few minutes. But people are willing to put up with the crowds, and with living costs that are 20-30 percent higher than Ahlone, in order to live downtown” she said.
U Wanna, 30, who moved from North Dagon to Bahan to be closer to work, said: “I moved because of the long commute. It takes an hour by bus from North Dagon to Batahtaung, and only half an hour from Bahan. Even though rents are twice as high in Bahan as in North Dagon, and other living costs are 25pc higher, I save a lot of time by living here,” he said.
U Thet Lwin, director of Shan Nagar agency said: “Customers prefer downtown to the outskirts at a rate of 70:30. Hlaing Tharyar, North and South Dagon and Shwe Pyi Thar are developing infrastructure, but it will be five years before they reach the level of downtown. Infrastructure development in the outskirts is only 40pc of what we see in commercial areas,” he said.
