Real estate agents in Mandalay, Myanmar’s second city, are set to petition authorities to cut the current 37 percent property transaction tax. The tax, imposed in August 2012, replaced a top rate of 15 percent and was widely criticised as detrimental to the property market.
Following a public invitation from the government for property agents to become more involved in policy, a meeting of brokers last week called to establish the Mandalay Region Real Estate Brokers’ Association.
“We have to submit proposals by February 11 relating to property fixed standard prices. We will also suggest reducing the 37 percent property transaction tax,” said U Wunna Soe of Phoe La Min real estate agency at the meeting, quoted by local media.
Elsewhere in the country, Yangon is starting to see minor cooling effects in its luxury property market after the implementation of new tax measures in October. The local divisional government applied fixed values for properties to determine owed property tax. According to local media, brokers reported that high-end property sales (above US$1million) had almost ground to a halt, although lower-end properties are still seeing demand.
The city must now work on its rental values, which have more than doubled since 2012. Though construction has increased since 2005, demand still far exceeds supply in Myanmar’s capital.
Andrew Batt, International Group Editor of PropertyGuru Group, edited this story which was first published by OPP Connect. To contact him about this or other stories email andrew@propertyguru.com.sg
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