H YANGON REAL ESTATE REVIEW

Transcription

1 H YANGON REAL ESTATE REVIEW

2 2 FMR H Yangon Real Estate Review NEED TO CHANGE ON EVERY PAGE Introduction and Methodology This report is based on research carried out in Yangon since 2014, as well as the longer-term market understanding of our staff. In addition to conducting interviews with developers, contractors, brokers, government and local authority officials, as well as other relevant businesses and organisations, we conducted numerous site visits to the projects mentioned in this report. The report is aimed at a wide range of readers, including developers, investors, funds and consultants, as well as construction companies, architects and building materials suppliers seeking to do business in the sector. The review is updated semi-annually. The H issue will be published in January 2019 with updated information. While we have made every effort to ensure that the information in the report was accurate at the time of research, the real estate market in Yangon is in flux. It is therefore inevitable that some information in this report may change rapidly. Average pricing figures used in this report should be seen as guidelines only, and the cost of many properties in a certain zone may be significantly higher or lower than the averages we use, given the immature structure of the Yangon real estate market. The report cannot and does not intend to provide a comprehensive picture of Myanmar s economic, legal, political and fiscal environment. Although these are covered in the report, the aim of this is to place the real estate sector in the wider context of the economy, the business environment and relevant legal considerations. FMR Research and Advisory does not provide legal or tax advice for companies intending to operate in Myanmar. The section in this report covering the legal framework for the property sector should be viewed only as a guideline. As legislation in Myanmar can be subject to unforeseen change, we always recommend that companies seek specialist advice from a qualified local firm where required. Credits Copyright 2018 Frontier Myanmar Research Ltd. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of Frontier Myanmar Research Ltd. All information in this report is produced to the best of our ability at the time of research and writing. We accept no responsibility for any loss arising from its usage. We would like to express our thanks to all interviewees involved in our research. Also, many thanks to the amateur street photographers of Yangon and curators of featuredcollectives.com If you have any feedback on the report, notice any errors, or believe we have missed something, please get in touch.

3 FMR H Yangon Real Estate Review 3 About FMR Research and Advisory FMR Research and Advisory is a business research firm covering the world s more economically exciting markets. We are based in London and in 2014 established an office in Myanmar, where we provide a range of custom and subscription-based business research services. We also have offices in Egypt and Libya, and have carried out projects in 20+ other markets in North Africa, Asia, the Middle East and sub-saharan Africa. In the real estate sector, we undertake market and feasibility studies for residential, office and retail property, as well as hotels. Our team of local and international staff offers a range of expertise, including direct experience of working for local real estate developers in Yangon. The Myanmar Real Estate and Construction Monitor is FMR s subscription service, an essential resource for developers, investors, contractors, architects, project management and other firms operating in the sector. It features news analysis, tenders, company profiles, a Yangon project tracker, data and copies of relevant legislation. Subscribers also receive two copiers per year of our Yangon Real Estate Review, published semi-annually. Buyers of this report are entitled to reduced rates on full annual subscriptions. For more information please visit realestate.frontiermyanmar.com or contact our team. Contacts Subscription and enquiries Jordan Zele jordan.zele@frontiermyanmar.com Custom research enquiries Jeremy Mullins jeremy.mullins@frontiermyanmar.com Online realestate.frontiermyanmar.com sales@frontiermyanmar.com Myanmar office Office No. 1007, 10th floor, Pearl Condo Block B Bahan Township, Yangon, Myanmar London office International House, 24 Holborn Viaduct, London EC1A 2BN

4 FMR H Yangon Real Estate Review 4 Structure and Contents Section A: Myanmar and Yangon Pages 8-41 This section places the Yangon real estate sector in context, providing an introduction to Myanmar and Yangon, including demographics, zoning, layout and infrastructure, as well as an introduction to the legal and investment framework for the real estate sector. Section B: Yangon Townships Pages This section provides a brief description of the various townships throughout Yangon. Maps and profiles of key districts illustrate prominent real estate projects throughout the city. Section C: New Developments Pages An at-a-glance summary of the most important Yangon real estate and construction news from the past six months, arranged in the following topics: Companies & Projects; Retail & Hospitality; Commercial & Industrial; Urban Development; Government & Legislation; Heritage; Transport ; Investments. Section D: Market analysis Pages Provides market analysis and background on the residential, retail and office markets in Yangon. In addition to covering market background and key supply and demand factors, this section contains data on pricing, historical and future supply, and our outlook for the market. Section E: Project Profiles Annex A We have identified dozens of noteworthy real estate projects in Yangon which are either in-progress or under planning. These vary from individual towers to major mixed-use developments. This section profiles each project according to a series of criteria where available, including components, investment value, companies and contractors involved, and estimated date of completion. It also includes a location map of each project. This list is not comprehensive, and focuses on the larger projects in the city thought to be the best representation of the overall market. It does not include infrastructure or industrial projects, but does include a number of large standalone mixed-use developments. Section F: Company Profiles Annex B This section contains profiles of over 60 private-sector developers active in Yangon, plus details of the key government agencies relevant to the real estate market, such as the Yangon City Development Committee (YCDC), the Ministry of Construction (MoC) and the Myanmar Investment Commission (MIC). Where available, information includes details of management, projects completed or in progress and a background introduction to the company. Construction companies, architects and other property-related firms are not covered in this report but are profiled online on the Myanmar Real Estate and Construction Monitor

5 5 FMR H Yangon Real Estate Review Table of Contents Section A: Myanmar and Yangon Introduction 8 Development, Population, Economic Growth and FDI 8 Legal and Investment Framework 12 Government Offices and Regulatory Bodies 12 Key Laws and Acts in Real Estate 15 Myanmar Investment Law and FDI 16 Condominium Law 18 Special Economic Zone Law 19 Upcoming Laws in Imports and Construction Materials 20 Real Estate Service Law 21 Types of Property and Ownership 22 Real Estate Transactions & Financing 24 Build-Operate-Transfer Agreements 24 Sales Transactions 25 Real Estate Financing and Off-plan sales 26 Banking and the Real Estate Market 27 Yangon 30 Geography and Layout 32 Planning and Zoning 34 Demographics 35 Utilities and Infrastructure 36 Transport 38 Section B: Township profiles 42 Ahlone township 44 Bahan township 46 Dagon township 48 Downtown CBD 50 Hlaing township 52 Hlaingtharyar and Insein townships 54 Kamayut township 56 Mayangone township 58 Mingaladon 60 Mingalar Taung Nyunt township 62 New Dagon townships 64 North and South Okkalarpa townships 66 San Chaung township 67 Tamwe and Thingangyun township 68 Thaketa and Thanlyin townships 70 Yankin township 72 Section C: New Developments 74 Companies & Projects 74 Building Materials 76

6 FMR H Yangon Real Estate Review 6 Commercial & Industrial 76 Government & Local Authorities 78 Legislation 79 Residential 80 Hospitality 81 Retail 82 Heritage 83 Transport and Infrastructure 83 Investments 86 Yangon New City Development 90 Section D: Market Analysis 98 Residential Market Analysis 98 Residential Stock 99 High-end Residential Stock 100 Recent Supply Trends 101 The High-Rise Freeze of Residential Pricing 104 Government Appraised Values 105 Sales, Demand Drivers, and Future Supply 106 Demand Drivers 108 Real Estate Investment Approvals 108 Affordable Housing Projects 111 Serviced Apartments 112 Residential Outlook 114 Office Market Analysis 116 Background and Recent Trends 116 Pricing 118 Office Stock and Supply 119 Shifting Centres 119 Occupancy 120 Future Supply 121 Serviced Office Market Analysis 122 Conventional and Serviced Office Outlook 123 Retail Market Analysis 124 Background and New Developments 124 High-end Retail Supply 124 Pricing 126 Occupancy and Tenant Breakdown 127 New Brand Entrants 129 Future Supply 130 Retail Outlook 131

7 FMR H Yangon Real Estate Review 7 Development, Population, Economic Growth and Foreign Investment Development and Economic Growth Though Myanmar s economy is still one the fastest growing in the region, with a GDP growth rate of 6.4% for , the growth rate has slowed from the highs of 8.4% and 8% achieved in and Despite the dip, future prospects remain positive and the general outlook of several sources in early 2018, including the World Bank and ADB, put future growth for around 6.8%. GDP growth rates and projections Source: World Bank s Myanmar Economic Monitor, May 2018 Myanmar s economy has enormous potential. However, the country remains largely dependent on agriculture, with this sector contributing to around 26% of GDP. While there are pockets of rapid growth in industry and services sectors in cities around the country, economic growth in Myanmar s rural regions has remained stagnant and there is growing income inequality between rural and urban households. Source: Ministry of Planning and Finance

8 FMR H Yangon Real Estate Review 15 Key Laws and Acts in Real Estate Transfer of Property Act Originally dating back to 1882, this law was most recently amended in It governs various types of property transfer, including sale, gift, exchange, and lease. The law defines the basic rights and obligations of the buyer and seller. In accordance with the Registration Act, also updated in 2013, all transfers of property over Ks500,000 ($385) in value, as well as leases above one year in length, are required to be registered. Of note here is the Lower House passing the new Deed Registration Law (DRL) in March 2018, to repeal and replace the Registration Act. The DRL s effective date has not yet been confirmed, but will mean that all immovable property over Ks100,000 ($75), eg. Land Purchase Agreement, Gift Deed, or Land Lease Agreement will need to be registered with the Registration Office. Transfer of Immovable Property Registration Act The 1987 Transfer of Immovable Property Registration Act prohibits foreigners from owning land or property in Myanmar, as well as theoretically restricting international leases to one year. Companies that have direct, beneficial contracts with the state are exempt, as are embassies. Stamp Act Dating back to 1899, this [Stamp Law] has been amended several times, with in recent amendments in 2014 and 2016 providing a comprehensive schedule noting differing rates of stamp duty on different legal instruments. Duty is also levied on leases of immovable property, ranging from 1.5% to 3% depending on the length of the lease involved. Stamp duty is charged at the time of transfer of ownership. For buyers purchasing off-plan, duty is only payable upon the completion of the building, at which point developers provide purchasers with final ownership documents. Given the relatively commonplace practice of under-reporting the actual value of property transactions in order to reduce stamp duty, the IRD has issued appraised values for different areas of Yangon. These provide a minimum threshold for tax payments. Furthermore, a 2017 amendment allowed for potentially additional charges that could be imposed based on geography, by the related municipality. This amendment is specifically related to Yangon and Mandalay. Union Tax Law 2018 The latest version of the national tax law was enacted in April The law has been passed every year since 2014, and generally provides updated tax rates as well as tweaking some of the country s tax rules. It appears the 2018 version largely followed the 2017, 2016 and 2015 law. The 2015 version imposes a flat 10% tax on rental income from property, which had previously been generalised under an income tax rate applied to general income. This was carried over in the 2016 and 2017 versions. The 2015 law had updated the tapered sales tax rate that applies to any purchases, construction, or acquisition of capital assets, including real estate, and ranges from 3% on values under Ks100m to 30% above Ks1.5bn. Buyers making their first transaction who are unable to prove that the source of funds has not already been taxed in income are additionally required to pay a sliding scale of fees dependent on the amount transacted. Currently if a building and/or land plot worth Ks1- Ks3m ($22,000), Ks3m-Ks100m ($22,000-$77,000), or Ks100m the transactions are taxed at the respective rates of 15%, 20%, and 30%.

9 24 FMR H Yangon Real Estate Review Real Estate Transactions and Financing Build-Operate-Transfer Agreements Build-Operate-Transfer (BOT) agreements allow the private sector to finance, design, build and operate investments on government-owned land for a fixed term. The wider political shift in Myanmar in 2011 heralded a privatisation scheme, and the government offered BOT tenders on state-owned property in Yangon as a means of gaining reliable revenue. With the government s 2005 move to the new capital, Naypyitaw, many prime buildings and compounds in Yangon were left empty. Many of these are heritage buildings dating from the colonial era, with significant architectural value, that have been left in dilapidated conditions due to a lack of maintenance. Other parcels of land that are either government owned or which have ambiguously defined ownership are eligible to be tendered for BOT agreements by the government. Tenders are usually managed by the ministry that owns the site, and terms can vary but typically may involve a land premium, annual rent or profit sharing. Furthermore, BOTs on heritage buildings may include restrictions on preserving original architectural features. The tendering process was previously overseen by the MIC and the President s Office, though how this process will be managed under the new NLD-led government remains unclear, and there have been relatively fewer BOT deals under the new government. BOT contracts were typically signed between the proprietor ministry or department, the winning company and the MIC, which supervises progress on the project. If the development does not proceed according to the agreed terms and conditions, the government may expel the company, cancel the contract and issue another tender. However, if a developer faces obstacles due to reasons outside of its control, the BOT framework can be renegotiated with the relevant department. Myanmar still lacks a privatisation law to regulate tenders of government land and buildings, and many aspects of the BOT tender process are not in line with international standards for example, there is no standard among ministries for tendering, and no consistent system for the appraisal of existing structures on the land such as colonial buildings. Developers and investors have previously called for reforms to the tendering process, as in many cases little to no guidance is offered regarding the type of development required, or the zoning regulations for the site. International investors have often been unwilling to take risks without greater visibility.

10 FMR H Yangon Real Estate Review 25 In Yangon, the majority of BOT tenders under the previous government were issued by the YCDC, the MPA, and government ministries. The tender process often favoured local companies, and foreign investment into these land plots tends to be structured through a joint venture. After the expiration of the contract, the construction is transferred to the government. The structure is common for hotels, office buildings, commercial buildings and conference centres as well as mixed-use projects. It has however raised particular questions over real estate titling and long-term ownership, especially for new off-plan projects. It is possible that a more organised system may be introduced by the new NLD administration. Some are discussing the idea of centralising the tender process through a single authority, though nothing concrete has been proposed. There has also been some discussion of the need for a Public-Private Partnership law, though so far such a law does not appear to have been drafted. Various initiatives to improve PPPs have been undertaken, though not all have been successful. Sales Transactions Properties can be sold or leased either by the entitled owner or by someone who has received power of attorney from the entitled owner. Prospective buyers or tenants are advised to check the legal status of the property at the Department of City Planning and Land Administration Record Maintenance Department of the YCDC. Property records can be accessed electronically upon application. For any real estate transaction, if the buyer cannot prove that the funds have not already been taxed, an income tax is levied based on the value of the property transacted, ranging from 3 to 30%. The Internal Revenue Department releases a list of standard values for Yangon neighbourhoods each year, to cut down on the previous problem of buyers / sellers underreporting prices.

11 26 FMR H Yangon Real Estate Review Real Estate Financing and Off-plan sales There are currently very limited channels for developers or individuals to access domestic sources of financing. Real estate-related development, in particular, is being held back due to high land and construction costs and a lack of financing options. Myanmar s nascent banking sector is equivalent to just 15% of GDP, and local banks, as well as Myanmar licensed foreign owned banks are unable to support projects larger than around $50- $100m. In addition, it is difficult in Myanmar to secure assets, particularly for Myanmar licensed foreign owned banks, so actors are often unwilling to take on the risk of dealing with uncertain land titling arrangements. The Central Bank s Directive No. (7/2017) on asset classification and overdraft regulation came into force in July 2017 and stated that banks can issue loans with a maturity of up to three years. This was the first clear instruction from the regulator that maturities beyond one year were permitted. Although there was no explicit rule preventing loans beyond one year, lenders issuing two or three year maturities were often instructed to stop. However, the fact that the 13% interest cap remains in force gives banks little room to experiment with longer maturities, especially as the great maturity of one-year loans are issued at the 13% ceiling. In addition, although lenders are beginning to offer two and three year fixed deposits, there is still a shortage of assets that banks can hold to match any potential increase in two or three year liabilities. All banks require loan collateralisation as a rule of thumb, which in some cases must be as much as 200% the loan s value, and in almost all cases is itself a land title, although other assets like gold may be used. Local firms also struggle to raise funds internationally, as most foreign banks remain very cautious about lending to Myanmar due to the high risk and lack of an appropriate legal framework in the country. Other major challenges also remain for developers using debt financing. Various organisations have been trying to counteract this, though so far this has been driven by development partners rather than commercial lenders. The lack of domestic options for financing has limited development of companies and projects. Currently, most projects are either funded directly by a foreign investor (in the form of direct equity, loans or mezzanine loans), or are selffinanced. This often means that developers use a mix of their own capital as well as the proceeds from off-plan sales to fund their projects, in turn increasing the risk of complete stoppages on projects when sales dry up has been observed with several projects over the past two years. Self-funding through pre-sales also has the effect of setting unit sale prices; developers are often unwilling to lower unit sale prices in the event of low demand after a sales launch for fear of punishing early purchasers as well as diminishing projected revenue from subsequent sales.

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13 36 FMR H Yangon Real Estate Review Planning and Zoning Generally, the townships in Yangon can be grouped according to their proximity from the Central Business District to the south of the city. These designations are helpful in classifying secondary business districts as well as understanding the general level of urban development further out from the city centre. YCDC is ultimately responsible for urban planning in Yangon, although its role overlaps with the Myanma Port Authority (MPA), the Ministry of Construction and the Yangon Region government. In 2011, YCDC set up the Department of City Planning and Land Administration, which works in collaboration with several organisations on a longer-term plan for Yangon s development. One such long term plan titled A Strategic Urban Development plan of Greater Yangon was written by the Japan International Cooperation Agency (JICA), and released in This report is thought to be key to understanding some of the decisions YCDC is expected to make in the coming years regarding city planning and infrastructure. It details recommendations to the Yangon government regarding building heights, parking requirements, and other zoning considerations that appear to have been enacted by YCDC during the high-rise freeze. Yangon s further reaching 2040 master plan is under development by YCDC and is thought to rely heavily on an updated internal report by JICA, but according to recent reports, the plan will be a collection of recommendations from many organisations, rather than strictly from JICA. The public is still waiting on YCDC to release more details and concrete regulations regarding urban planning. By H1 2018, a clear zoning plan has still not materialised. Officials have said some regulations and plans for urban development will be clarified with the new Yangon City Development Law, which passed in the regional parliament in H

14 44 FMR H Yangon Real Estate Review Ahlone Township Sky One Tower Royal Sin Min Condo Pan Swal Taw Condo Yangon River View Complex Paragon Residence Harbour Trade Tower Shwe Zabu River View Complex Sakura Business Centre Hill Top Vista River View Point Tower Ahlone Township lies to the west of the city centre. It has seven wards and is one of the smaller townships in Yangon both in terms of land size and population, with a total area of 1.4 square miles with a population of around 55,000 people. It borders Dagon to the east, San Chaung and Kyeemyindaing to the north and Yangon River to the west. Ports, shipyards and government owned factories cover the western parts of the township along the banks of the Yangon River. Strand Road and Ahlone Road are the two main arteries passing through the township and traffic congestion is less problematic than in other areas of the city. Most streets in Ahlone offer mid-range residential apartment blocks. As the township is close to the river, air quality tends to be better than in the densely populated townships to the east of Yangon such as Tamwe, Mingalar Taung Nyunt and the downtown CBD. First mover residential, office and mixed-use projects in Ahlone were well rewarded. Due to the low supply and ideal location, the first of these projects, developed in 2014 and 2015, did well and had steady demand. However, at all of the sites we surveyed in H1 2018, developers are saying that competitors are emerging, the price of land is very high and the economy is slow. Construction also has higher costs in Ahlone due to the close proximity of the river water can be accessed after drilling, but it is salt water. Developers have faced issues building basements in complexes in this area. Real estate to the southeast of the township, closer to the CBD, is the most expensive. Several high-end residential apartments and detached houses, occupied by upper and middle-income groups, are located in Hnin Si Gone Street and Min Ye Kyaw Swar Road. Shwe Taung s Hill Top Vista, officially launched on 1 January 2018, adding over 200 units of highend residential space to the township. Units at the development range from $185 - $190 per sq ft. Paragon Residence is set to launch in February 2018 with a total of 114 units priced at $170 - $220 per sq ft. Work has also commenced on Shwe Zabu Deik s Pan Swal Taw Condominium Project, which will reportedly have 156 units. Sales opened for select floors in the project in H at around $190 per sq ft.

15 FMR H Yangon Real Estate Review 45 Furthermore, the township has a number of completed mid and high-end condominium projects, including Shwe Zabu Deik s River View Complex, Crown Condominium, Royal Sin Min Condominium and Orchid Condominium. The projects are often developed and operated in partnership with YCDC. There were few dedicated multi-tenant office buildings in the township up until 2017, with the announcement of Harbour Trade Tower in November. This development will feature a total leasable area of 17,000 sq m across 21-storeys. Completion is currently slated for late A few larger companies, for instance Shwe Taung Property, with operations in Ahlone have chosen to occupy standalone buildings and detached houses. Sakura Business Centre, an eight-storey mixed-use building, came online in Q The building has two storeys of condominium units, two storeys of serviced office space and a hotel. Early concept drawings released by the company showed that a 17-storey building was planned for the site behind the eight-storey building; however, there is no work currently underway on the second building in late Yangon Triple is developing the River View Complex. The project comprises an 11-storey office tower, a 16-storey serviced apartment building and a three-storey podium with parking space and other amenities. The project has yet to begin construction at the time of writing. YCDC is due to upgrade Ahlone market into a two storey, high-end retail market. However, according to our research in H2 2017, shop owners claimed YCDC is not moving forward with the redevelopment as promised. The riverside areas in the western parts of the township include Asia World Port Terminal and Ahlone International Port Terminal, as well as Wardan Jetty, which is marked for future development. No.1 Ahlone international wharf officially opened in March. Funded by the Myanmar Economic Corporation (MEC), the new quay is located on New Strand Road and features 190,000 sqm of terminal operation area.

16 98 FMR H Yangon Real Estate Review Section D: Market Analysis Residential Market Analysis The market is slowly recovering albeit at much lower price points than in the past The market corrections and oversupply of the last two years continue to influence the residential market, though long-term growth prospects in more affordable segments of the market remain robust Around 500 units across seven project were completed in H Notable projects such as the Peninsula Residences launched sales in H1 2018, though most new projects face much lower growth in demand for pre-sales A few developers made definitive steps forward with mega-projects, such as the Yangon Central Railway redevelopment and New Yangon city development Government decision-making will continue to be crucial, though the economy is slowly becoming more robust. Strong indications of a developing mortgage market were also on display as private banks worked to provide longer-term loans to partner projects and have slowly surpassed government lending Several large investment commitments for mixed-use developments and residential projects indicate the tentative renewal of investor interest and the fiscal year is the strongest on record for real estate investment

17 FMR H Yangon Real Estate Review 127 Retail Market Analysis The retail market continues to perform slightly better than its office and residential counterparts due to a lack of supply Supply is increasing, with high-end retail space doubling in 2017, and expected to double again by the end of 2019 Increased supply will likely have a downward pressure on pricing in the short term, but Myanmar s growing demand for retail will ensure steady price rises over the mediumterm Retail space coming online will continue to be couched within broader mixed-use developments for the foreseeable future F&B, and other crowd attracting retail stores are likely to dominate the make-up of spaces in the coming years Background and New Developments The retail market has developed significantly since the turn of the century, when Yankin Center generally considered Myanmar s first modern retail mall opened its doors in After slow growth for more than a decade, sweeping economic and political reforms in 2011 allowed for an increase in foreign and local investment in Yangon s real estate market. Increased investment, as well as the participation of foreign developers and consultants, resulted in a number of international standard retail and mixed-use projects breaking ground in the subsequent years. Historically the retail market has been dominated by mid-end development, such as Junction Centre malls, Taw Win Centre and City Mart Holding supercentres, which cater to local brands and chains. However, the market is now seeing international standard shopping malls create a new space in the segment, as notable high-end mixed-use projects continue to come

18 127 Mottama Holdings Nationality Myanmar Ownership Privately owned: Yang Ho (40%), Shauk Si (30%), Soe Win (30%) Year established 2013 Address No.(103/104), Bayint Naung Street, Industrial Zone (4), Shwe Pyi Thar township Phone Website Management Yang Ho (chairman and managing director) Shauk Si (director) Soe Win (director) Affiliated companies 14 subsidiaries in real estate, construction, trading, manufacturing, banking, hospitality and logistics Employees 1,900 Completed projects Maha Land Center (Yangon) Ongoing projects Bonamy Tower, M Green Residences, M Hotel, Ayeyarwun-Yadanar low cost housing contractor, Profile Mottama Holdings is a newly established investment company with a focus on real estate and construction related sectors. It is essentially a rebrand of the company formerly known as Asia Metal Construction. Mottama has taken over all the projects that AMC was working on, and has changed the name of a number of these projects. Examples include the former AMC Tower, which is now known as M Tower. Min Dhama is the property development arm of Mottama Holdings. In May 2017, Mottama and Singapore-listed Oxley Holdings announced they were moving forward with the $250m Min Residneces project. It had been publicly discussed as far back as 2014, though the 2017 decision to move forward with the project represents a vote of confidence in the Yangon property market s long term potential. In November 2017, Mottama Development, a property arm of Myanmar-based conglomerate, Mottama Holdings, signed a joint venture agreement with Peace Myanmar Electric Holdings for the development of an office tower in Ahlone Township. Local media reports claimed that a building named Harbour Trade Tower is being developed on Kyimyindine Kanner road and will comprise 21 storeys and 5-basement floors. Kyaik Htee Yoe Resort (Kyaikhtiyo), HL Tower, Green Valley Residence, Myanmar Aquarium, Min Residence, M Tower, Mottama Centre, Mottama Business Tower As of December 2017, Min Dhama Construction, a subsidiary of Mottama Holdings, is reportedly one of the finalists for the Yangon Central Railway Station Redevelopment, which aims to upgrade the historic railway terminal and establish high-rise buildings, hotels, retail space, restaurants, function halls and movie theatres on a 63-acre area in downtown Yangon. The cost of the project is estimated at roughly $3bn. It was later announced as the preferred bidder in February 2018, beating a consortium led by Serge Pun. Further discussions are now ongoing. As of H1 2018, work is underway on Mottama s M Tower, a 24-storey steel structured office tower with three basement levels on Pyay Road near the Hledan Junction in Kamaryut Township. On 15 June 2018, Mottama announced it will develop nine projects in Yangon worth over $1bn by The projects are: M Tower on Pyay Road, Min Residences on Mindhama Road, Mottama Centre and affordable housing project, M Green Apartment in Yangon s Mingaladon township, an aquarium inside Kandawgyi Park, Harbour Trade Tower on Strand Road, HL tower on Pyay Road, Bonnamy Tower on Kyaik Waing Pagoda Road and Mottama Business Tower on Mindhama Road.

19 Riverfront Garden Location Seikkanthar Road, Hlaing Thar Yar Township Owner/ Developer Toener / Southern Metal Industry Real Estate Development Co Contractors/consultants Southern Metal Industry Real Estate Development Co (Developer) Toener International (Investor), Australia Wavelly Company (landscaping) China State Construction and Engineering Corporation (Contractor) Estimated completion December 2019 (Two blocks of phase 1) Status H Preliminary work underway, still waiting on necessary approvals from CQHP Value $650m Tender terms Freehold (owned by the chairman of Ruby Dragon Group) Uptake H1 17 (40%), H2 17 (70%), H1 18 (65% for three blocks on sale) Payment Terms Pricing Total Land Area (Phase 1) 10 acres Ground Floor Area (Phase 1) 254,740 sq m Residential Area (Phase 1) 189,614 sq m Green Area 30% Property Type (Phase 1) Condominiums Total Units (Phase 1) 1,713 Units Total Units (Phase 2) 2,750 Units Total Parking Space 2,821 Lots Type 1: 20% (down payment), 70% (36 months), 10% (handover) Type 2: 30% (first payment), 10% (basement completion), 10% (completion of half of structure), 10% (building topping up), 20% (external facade completion), 20% (handover) $134-$164 per sq ft (H1 18), Ks180,000 - Ks220,000 per sq ft (H2 17), Ks180, ,000 (H1 18) COMPONENTS COMMENTS Construction started in mid-2016, the project advertises an uptake rate of 65% as of July This figure appears quite high given the project s current state and other comparable developments. Phase 1 (10 acres): 13 structures including four 17-storey high-rise buildings, one 15- storey building, one 23-storey structure and seven 31-storey towers. Phase 2 (21 acres): Eleven 31-storey towers and ten 16-storey structures to produce 2,750 flats.

20 Office 10-07, Building B, Pearl Condo, Kabar Aye Pagoda Road, Bahan township Yangon, Myanmar