In the announcement on January 5, the ministry said the management committee will register new and existing property developments that meet the definitions of condominiums in the country and registration offices have been set up in 12 regions and states, including Nay Pyi Taw.
“So far, some 40 developers have come forward to register condominiums,” said U Myo Myint Oo general secretary of the Myanmar Construction Entrepreneurs Association and also member of the Yangon Region Condominium Management Committee.
“The committee was formed in early January and it has decided to give approvals to 13 condominium projects. It may take six months from its establishment for the management committee to hit its full stride, and things are starting to move fast,” U Myo Myint Oo said.
As the condominium law and rules are fairly new, some issues still need to be ironed out in the long run he added.
U Myo Myint said he expects over the next two to three months, units in condominiums registered with the management committee will start coming onto the property market and become available for purchase by foreign buyers.
He said application documentation had been made available to property developers for a fee by December 24, before the official organisation structure of the management committee had been formalised in order to make the process more efficient.
In the case of new projects, developers first have to apply for a business licence to register a collectively owned building, after which they have to seek a permit to build on land that has been registered as having been converted to collectively owned land with the documents registration office, said U Wai San Thein, registering officer for collectively owned buildings in Yangon Region.
“For the business licence, a fee must be paid to the regional government in accordance with the ministry’s approval,” said U Wai San Thein, adding that a separate five-year business licence is required for constructing a collectively owned building.
“Once a registered condominium project is 30 percent complete, units can be offered for sale after providing proof of building completion and obtaining permission from the registration office.
“Then, a list of units that have been sold has to submitted to the registration office so certificates of ownership can be issued to individual owners,” said U Wai San Thein, adding that if a unit is resold, a registration certificate with the new owner’s name will be issued.
Under the Condo Law, 40pc of a condominium project can be sold to foreign buyers.
“If a foreign owner wishes to sell they’re unit, either a Myanmar citizen or a foreigner can buy the unit as long the ownership still meets the 40pc foreign-ownership requirement.
“Direct sale or reselling can be carried out by anyone until the foreign- ownership threshold is reached,” said U Wai San Thein.
“The registration office will ensure the 40pc foreign ownership stipulation is adhered to, but until the threshold is reached, anyone can purchase or sell the units with the approval of the registration office,” he said.
“Once developers or owners of existing projects can regularise their properties under the current framework, the property market will become more streamlined,” said U Kyaw Sithu, sales director of Success Property Consultant Co.
“Although the registration has begun, I think it will take the committee about six months to run its operations smoothly. There will be significant impacts during the second quarter of this year,” said U Kyaw Sithu.
“The management committee has now been set up, and if the government lowers the tax rate in the coming fiscal year, the property market could see a boost this year,” he said.
“The property market would also be boosted if laws and regulations covering ordinary apartments were created alongside those now governing condominiums, said U Myo Myint.