Who will benefit from Condominium Law?June 30, 2014
Extracted from the Myanmar Times.
Edwin stated in the article.
Even in the current form, the law will still have an important impact on some sections of the market and will enable land to be used more efficiently. Edwin Vanderbruggen, a partner at legal advisory form VDB Loi, described it as “manna from heaven” for cash-strapped local developers.
“Until now, you need to get every- thing done with equity. That means you can only do one-15th of the project you would otherwise be able to do and you’re relying on pre-sales, which you may or may not get,” he said.
“[The Law is] investment-oriented, it’s forward-looking, the effect of this on financing of existing projects is significant. Don’t forget that we’re on the verge of an influx of money, of international financing. For the first time in a long time international banks are seriously looking at providing financing for Myanmar projects.”
And while it won’t enable everyone to access title, Mr Vanderbruggen described high-end developments as “not a bad place to start”. “[Land ownership reform] is really too big of a piece to swallow at one time because it’s not just apartments, it’s also … rural land and urban land and houses,” he said, “I wouldn’t know where to start … At least [with the Condominium Law] we’ll have proper title for one thing.”