Property contractors are under pressure from rising costs of building materials as a result of the higher dollar-to-kyat exchange rate. Building machinery and materials such as steel bars, which are imported from overseas, have become dearer to local developers and contractors on the back of the appreciating dollar. That is likely to drag many developers into the red, particularly on apartments that have already been pre-sold or reserved by buyers before the exchange rate spiked. Before the Condominium Law was enacted, it was common for sellers and buyers to make direct arrangements for property transactions, for example, paying an upfront deposit and the remaining when the property is complete and handed over. Under such arrangements, developers are likely to come under heavier pressure to fund the ongoing construction of the properties as costs rise.

Source: Myanmar Times

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