The building, to be constructed on Inya Lake, would be the tallest in the former capital. It is scheduled for completion sometime in 2015, officials said.

The building will occupy a block that was formerly the Ministry of Industry’s (1) towel factory at 2 U Htun Nyein Street, near the Inya Lake Hotel, according to a story on Monday in the Myanmar Times, an English-language newspaper.

It will offer 406 residential apartments, a spa, gym, mini-theatre, swimming pool and other amenities, according to reports.

Four penthouses on the top floors will have panoramic views of Rangoon, said the newspaper.

Residential rooms will be offered from 850-3,000 square feet, a spokesman said.

MGW Construction is the developer of  Rangoon’s largest shopping mall, the Yadanapon Diamond Plaza.

On October 15, Mizzima reported Burma’s government is trying to lower the skyrocketing price of land in industrial zones and other areas as developers anticipate the onrush of foreign investors looking to take part in Burma’s economic development, according to domestic reports.

Prices of land plots, houses, buildings and apartments in the commercial center of six Rangoon downtown areas, especially on the main roads, have risen six times compared with the previous five years, according to some reports.

Entrepreneurs said the current industrial land prices could impact foreign investment, as it spills over to land for homes and small businesses.

Reports said that the ministry at the President's Office is introducing a measure to establish land price control committees involving the government and the private sectors in Rangoon and Mandalay.

In August, the government increased its tax rate on real estate deals by 22 percent in terms of value.

Recently, real estate agents reported that the market had turned down after the introduction of the higher tax.