Myanmar’s Department of Urban Housing and Development (DUHD), a department of the Ministry of Construction, is seeking a partnership with Foreign contractors with capabilities to produce 60,000 affordable housing units within two years. Apartments are expected to size at around 800 square feet and cost less than K13.5 million (~US$10,000) each. The down payment is set at 20 to 30 per cent of the cost.
Overview of Yangon Housing Sector
Yangon has inherited a chronic shortage of housing and needs to create 75,000 to 100,000 new affordable housing units per annum. In the short term the new government will allow for foreign participation in the low-cost housing sector.
According to the World Bank, Yangon’s population is growing much faster than its spatial area, with much of this growth coming from rural urban migration. About 300,000 people from across the country move to Yangon every year. According to research by the Department of Urban and Housing Development, Yangon has a population of nearly 5.21 million. To keep up with population growth, the city requires 75,000 to 100,000 new apartments a year. That estimate does not include low-cost housing for poorer residents, with some suggestion at least 2 million unofficial residents live in shanty towns across the city, unable to afford formal houses.
But the government and private contractors can build only about 30,000 apartments a year, createng a shortage that has driven up both sale prices and rents. Therefore, Myanmar’s Department of Urban Housing and Development (DUHD), a department of the Ministry of Construction, is seeking a partnership with Foreign contractors with capabilities to produce 60,000 affordable housing units within two years.
Land will be supplied by the Myanmar Government in East Dagon and Thanlyin townships, as part of the DUHD’s plan to build 60,000 low-cost apartments for Dagon, Thanlyin and Mingaladon townships.
The project is expected to take two years to complete, with apartments sized at around 800 square feet (20’x40’). Buildings will be either four-storeys with six rooms per floor or five-stories with eight rooms per floor. Each flat would have 2 bedrooms and 1 kitchen. It is hoped that these apartments will be sold directly to low income households, with units expected to cost less than K13.5 million (~US$10,000) each. Those who want to buy the apartment in instalments must have a minimum monthly income of three to five lakhs.
Infrastructure such as roads, electricity and water supply and telecommunication services account for about 30pc of the project. The affordable housing projects will include playgrounds, car parking and public areas where people can socialise.
The number of licensed contractors in Yangon has increased sharply in recent years, and with authorities eager to make sure the construction industry follows strict regulations the city’s contractors are planning to form an industry association that can liaise with government. The number of contractors with a requisite licence from Yangon City Development Committee has shot up since 2011, and now numbers well over 1,200, according to the Global New Light of Myanmar.
The association, named the YCDC-Licensed Contractors Association – should be able to help Yangon authorities make sure the new regulations are followed properly. The new association can submit reports and problems to the authorities concerned after listening to the public. It can also bring benefits to the public who have purchased the contracted apartments. The contractors can solve the problems of advanced purchases and brokerage cases under the legal contracts and official documents. The new regulations have already been shared with industry association and will be made public once they have been approved by the Yangon Region government.