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Housing Development: Realtors Stressed To Reduce Interest Rate For Home Loan

27 May 2018

The government and Myanmar Construction Entrepreneurs Association (MCEA) are working together to provide quality and affordable housing for the government employees.

The government and MCEA joined forces together to form public committees and establish master plans on construction of housing for staffs. By the end of 2020, the government aims to provide 2 million units of housing for staffs with the support of MCEA.

Chairman, Myanmar Construction Entrepreneurs Association (MCEA), Thar Htay said “MCEA has been working on housing for retired civil servants and low cost housing for government employees. Low cost doesn't mean low quality. We want to provide convenient housing with a low rental fees for government employees.”

The sale on low cost housing is expected to rise in the upcoming years and it is priced around 10 million kyats currently. The government also launched home loan payment plans for government employees by cooperating with the Urban Development and Housing Department.

Joint Secretary, Myanmar Construction Entrepreneurs Association (MCEA), Tin Aung Myint said “We’ve successfully launched staffs’ housing plan and rental housing plan. We aim to use the plan for the whole country, not just a region. The government will provide the land and MCEA take the responsibility of housing construction with the financial support of Ministry of Planning and Finance. The sub committees of MCEA have been established in all different States and Regions and the construction banks will be established also.”

But the realtors stressed to reduce the interest rate so as to achieve significant progress in real estate market.

Chairman, Development Committee (MCEA), Nyein Aung said “Home loan payment plan can improve the real estate market but the interest is still high. The tax should also be lowered for more improvements. The local and foreign banks should jointly cooperate to reduce the interest.”

Currently, the government and MCEA are making plans to lower or exclude the down payment and to offer mortgage without any interest.