Myanmar recently enacted a condominium law and bylaw that makes it legal for foreigners to purchase condominiums, but despite the new laws no condos have officially been sold to foreigners because a condominium management committee has still not been formed, according to iMyanmarhouse.com.
“This means losses for the country. Since, the real estate sector can generate a lot of foreign income,’’ U Nay Min Thu, Managing Director of iMyanmarhouse.com, said.
According to the condominium law, condominiums can only be sold to foreign buyers after the condominium is registered and meets all the requirements.
Real estate service providers are urging the government to allow condominium sales to foreigners but, they still need related committees to be formed in accordance with the law so that condominiums can be sold to the foreigners.
“The condominium law took five years and nine months for the drafting process but there are a few steps left such as forming an enforcement committee and condominium management committee to go through with the sell condominiums to foreign buyers,” U Myo Maw Oo, Managing Director of Property Solutions Co., Ltd, said.
“This (selling condominium to foreign buyers) needs a management committee. Now, it is reported that the committees have been formed in some places and that selling condominium to foreigners is delayed because of the committee,’’ he added.
The law is drafted with the goal of providing housing to the growing population, clear legal framework will result in revenue for real estate sales.
The condominium law passed in January 2016 and bylaw enacted in December 2017 allow foreign buyers to buy up to 40 percent of a particular home. Real estate developers believe that allowing foreign buyers will generate more funds for further developments.
Currently, they said they are having difficulties due to higher taxs, high interest rates and law investment in the real estate sector.