Real estate

REAL ESTATE AND

BUILDING CONSTRUCTION INDUSTRY

OF MYANMAR

Ministry of Construction, Myanmar

Hlaing Maw Oo (alias) Maw Oo Hock Deputy Chief Architect / Urban Planner

Public Works / Department of Human Settlement and Housing Development Ministry of Construction

2014 ICMCI ASIA PACIFIC HUB MEETING Nay Pyi Taw, Myanmar. 28th April 2014


Hlaing Maw Oo (alias) Maw Oo Hock, Deputy Chief Architect / Urban Planner Public Works / Department of Human Settlement and Housing Development, Ministry of Construction


Building Construction Industry in Myanmar

CLASSIFICATION OF BUILDINGS

1.   Assembly 2.   Business 3.   Educational 4.   Factory and Industrial 5.   Hazardous 6.   Institutional 7.   Mercantile 8.   Residential 9.   Storage 10.  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.

Building Airfield

Public Works

Bridge

Department of Human Settlement

and Housing Development




Main Public Stakeholder in Building Construction Industry

Before 2011 Construction and Maintenance of Large Scale and National Level Buildings


Building Construction Industry in Myanmar


AAer 2011 Undertaking 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

RegulaFng Building ConstrucFon

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 ConstrucFon


The Changing Role of Public Works, Ministry of 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

Regulatory Body

Designated Building Construction Authority


Envisaged Future in Building Construction Industry


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




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




Public Works Department of Human Settlement

and Housing Development



Main Public Stakeholder in Real Estate and Housing

Low Income

Middle income

High Income Upper-‐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



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

Shelter/Space Local needs

Colonization & Urbanization

Public Housing Social needs 1951 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 Housing Lack of integrated Land use and Transport Planning

Satellite Town Development

Satellite Towns , Industrial zones & Housing Development

DHSHD (1990)

Housing Department (1972) Private Sector

Participation in Housing Delivery



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)

TargeFng on Low-‐Middle income group

•  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.



Main Potentials in Housing

•  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

Source: UNHabitat, CSO.

Myanmar Center of interest for the international investor



1553

2580

5466

1255 1488 1747 1067

600 1040

308 495 539 387 124 106

8205 7423 7170

6654 6125 5780 5730

3370 3193

1855 1755 1616 1165

571 365

Urban Total

(Thousand)

POPULATION OF REGIONS AND STATES 2011-2012

Source: Immigration and Man Power Department



PER CAPITA GDP OF REGIONS AND STATES (2012) MILLION KYATS

1.29

0.86

0.75 0.73 0.63 0.60 0.59 0.58

0.53 0.50 0.45 0.42 0.40

0.24 0.23

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

GDP per person

(million kyat)



Sr. No.

Particulars Total Permitted Enterprises

No. US$ Total (Kyat) %

1 Construction 60 423.51 733314.00 16.75 2 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 9.12 7 Liverstock & Fisheries * 61 102.93 26375.46 0.60 8 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

0 500 1000 1500 2000

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 Enterprises No. of

Enterprises

Approved Amount (US$ in

million)

Percentage(%)

1 Power 7 19284.43 42.52 2 Oil and Gas 115 14372.272 31.69 3 Manufacturing 317 3736.29 8.24 4 Mining 69 2862.424 6.31 5 Hotel and Tourism 51 1797.921 3.96 6 Real Estate 22 1229.150 2.71

7 Transport & Communication 18 1217.016 2.68

8 Livestock & Fisheries 28 365.974 0.81 9 Agriculture 13 203.02 0.45 10 Industrial Estate 3 193.113 0.43 11 Other Services 15 54.39 0.12

12 Construction 2 37.767 0.08 Total 660 45353.78 100

0 100 200 300 400

Power

Man

ufac

Mining

Hotel

Real

Tran

spor

Livestoc

k Agricultu

Indu

stria

Other

Con

struc

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

(BY SECTOR)

No. of Enterprises

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

FDI IN REAL ESTATE SECTOR

THE DEVELOPMENT STRATEGY OF CONCENTRATED DECENTRALIZATION

Capital City (Administrative, Transport & Logistic Hub )

Secondary Regional Growth center

Other Growth center

Town with more then 50000 inhabitants

Main Corridor

Emerging Corridor

Major Communication Axis

National Economic Growth Centre (SEZ, Port, Int. Airport, Trading, Financial )

National Spatial Development Plan 2014 ICMCI ASIA PACIFIC HUB MEETING Nay Pyi Taw, Myanmar. 28th April 2014

Hlaing Maw Oo (alias) Maw Oo Hock, Deputy Chief Architect / Urban Planner Public Works / Department of Human Settlement and Housing Development,

Ministry of Construction

Means and Areas for Housing Development in Yangon As an increase of around one million households is expected in the next 30 years, there is an annual need of around 25000 housing units and housing plots. This is proposed to be implemented through -

§  Densification of unpopulated residential areas;

§  Upgrading of Housing Estates: upgrading of government owned and public housing estates, densification through additional storeys in the upgrading projects (e.g. Yankin Shwe Ohnpin Housing Estate);

§  Old Satellite Towns Redevelopment: with the location of South Okkalapa, North Okkalapa and Thaketa townships becoming central, efficient utilization of existing buildings and increase of building storeys to achieve densification;

§  New Satellite Town Redevelopment: Densification through mid-rise housing estate development in unpopulated wards of Dagon Newtown, Shwe Pyithar and Hlaing Thayar townships.

§  Water Front Development: Urban regeneration and land readjustment in Botahtaung, near Botahtaung Pagoda, Dawbon (Pazundaung Creek), Dagon Seikkan and Thaketa.

DHSHD, MOC

DHSHD, MOC

Myanmar-Vietnam Cultural and Commercial Center

Five Star Hotel Commercial Center Office Building Service Apartment 8 ha of Land 300 million USD, 100% FDI

•  OPPORTUNITIES OUTLOOK

•  HOTEL •  SERVICE APARTMENT •  RESIDENTIAL HOUSING

•  CONDOMINIUM •  AFFORDABLE HOUSING

•  COMMERCIAL COMPLEX •  BANK •  SHOPPING COMPLEX •  AMUSEMENT PARK

Housing Estate Redevelopment Scheme Old Housing Estates (DHSHD) 10 Housing Estates in Yangon (450 acres) 3 Housing Estates in Mandalay 29 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

Myanmar Business Investment Summit 2013.AAM

Housing Estate Redevelopment Scheme

U Wizara, Dagon 51th Street, Botataung Pyinmapin, Mingaladon Gyogone, Insein Pyitawthit, Pazuntaung Yankin Shwegondine, Bahan Kantawkalay, Mingalataungnyunt Wayluwun, Sanchaung Thuwuna

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

•  Redevelopment with the parCcipaCon of private sector. •  Mixed development for residenCal and commercial to uClize scarce and valuable land

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

PLANNED HOUSING PROVISION OF DHSHD Type of Housing Project (no) Unit(no) LocaCon

Low Cost Housing

7 11868

Shwe Lin Pan, Hlaing Tharyar Mingalardone, DagonSeikkan Dagon East

Affordable Housing

7 26142

Pilot Project(19600)-‐ Dagon Seikkan Hlaing tharyar, Dagon South Shwe Pyi Thar

PPP Project (DHSHD)

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

Estate Redevelopment

(PPP) 2 632

3529

Link Road Botahtaung housing COMMERCIAL 350000 sq ft 181440 sq ft

Other (PPP)

30 7

407

Mingalartaungnyunt Botahtaung Timesquare Hletan, Thanlyin,others, CBD

Total 42578

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

HOUSING PROJECT DEVELOPED BY YCDC (2013-‐2015)

50,000 Housing Units Production

•  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

25

(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

62’ ~ 78’ Area

< AMS 190’ Area

Building Height Allowed

Shwe Dagon Pagoda Conservation Zone 1 62’ ~ 78’ Area

Shwe Dagon Pagoda Conservation Zone 2 <AMS 190’ Area

I m p o r t a n t V i s t a s t o w a r d s S h w e D a g o n P a g o d a

YANGON Down Town Urban Heritage Zones

YANGON Down Town Urban Heritage Zone (1)

A r o u n d C B D

YANGON LAND USE & BUILDING HEIGHT ZONING PLAN

Waterfront Special Development Zone

Zoning Regulations Township wise and Along Major Roads

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



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



§  Under-supply of an appropriate Residential and Commercial property

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

§  Undergoing rapid transformation, including inflow of international investment

§  Significant demand for Land and quality space in Yangon

§  Developers are focusing on high-end projects in Yangon

§  Strive for changes of Quality in the Real Estate Market

§  Need for enactment of Legal framework for property market development

Driving Demand for Quality



THANK YOU FOR YOUR KIND ATTENTION

Hlaing Maw Oo (alias) Maw Oo Hock Deputy Chief Architect / Urban Planner

Public Works / Department of Human Settlement and Housing Development Ministry of Construction

Real estate

Presentations & Public Speaking

Transcript of Real estate