Yangon to get 8,000 more flats by 2018

A low-cost apartment in Shwepyitha Township. (Photo-Shine Lin Aung)

The Ministry of Construction expects to finalise plans to build 8,000 new flats in Yangon Region by March 2018.

The ministry has already built 2,200 low-cost flats in the first 100 days since the government took office, with the Yangon Regional government currently managing 1,500 of them.

The Urban and Housing Development Department plans to sell over 600 flats, according to the ministry.

An official at the ministry said: “We need land and capital to implement housing projects. Each year we are building new homes, and eventually the goal is that people will have their own flats.”

The buyers must have about 30 per cent of the apartment’s value in their accounts at the Construction and Housing Development Bank (CHDB). This is to ensure that they have enough income to pay off the monthly installments.

The bank offers an interest rate of 8.5 per cent per annum for the savings account and mortgages will cost 12 per cent annually.

“We are selling affordable apartments with an installment plan.

The current bank interest rate is 13 per cent - but the ASEAN rate is five per cent. This is a problem. For example, the buying rate is Ks 10 million and the interest rate may be Ks 5 million or Ks 7 million in the long run. If so, the buying rate is twice the real cost of the apartment,” said Khin Maung Than.

Translated by Nay Thiha