Real estate companies said there was little trading in Yangon's property market as brokers adjusted to the new deal. Some say the official prices set for some strategic locations in the city are lower than existing prices.
"Currently the market is slowing down. Property is not like consumer foods which can decay easily. And they're not like motor cars which sell low when new models come out. So most property owners and buyers made few deals. Only those who need money put their properties on sale," said Hein Moe Myint Lwin from the Estate Myanmar brokerage firm.
There has been a chronic shortage of real estate space, fuelling a boom in property prices as more foreign companies begin to open up shop in Myanmar.
Market analysts also raised concerns, questioning if the authorities aim to control the property market to reduce prices or to obtain taxes on the property sales for the government.
Currently, a property buyer needs to pay 37 per cent of the property price in tax.
"The move is good. For example, when you buy a property worth 10 million Kyats (S$12,000), you will need to spend 13.7 million Kyats for the property. It's also good for the public. You can be an officially registered owner of a property when you pay taxes for it. Problems resulting from unofficial sales can also be reduced," said Moe Moe Aung from Myanmar Real Estate Brokerage Firms Association.
Other regions and states in Myanmar will soon follow the example of Yangon, said Dr Maung Maung Thein, the deputy finance minister.