Q4 2014 Yangon Real Estate Review now available

Our third in-depth review of the Yangon real estate market is now available to purchase.
 
The Q4 2014 Yangon Real Estate Review contains more than 220 pages of information, covering residential and commercial market analysis, developer profiles, data, legislation, maps, district-by-district profiles, and comprehensive details and maps of over 80 ongoing or prospective projects in Yangon.
 
Researched during the past three months by Frontier's local and international staff in Yangon, this is an essential resource for companies involved in the real estate and construction sector, including developers, investors, banks, contractors, architects, project managers and others.
 
Key findings from the report include:
  • Competition is increasing across all sectors, particularly in the residential space, with developers aiming to complete more than 10,000 high-end apartments in purpose built towers or mixed use projects before the end of 2017
  • Since October 2014 there has been a marked slowdown in sales of high-end residential units, with some high-profile projects reporting few unit sales in the final quarter of 2014
  • Many speculative investors, who account for a large proportion of high-end unit sales, are now in ‘watch-and-wait’ mode, following a combination of anti-corruption reforms and reforms on tax legislation. Some developers are struggling to turn reservations into sales, and certain companies have lowered their prices in Q4 by around $20-$30 per sq ft compared to Q3
  • Pricing at the top-end may be unlikely to rise, due to a limited buyer pool, which will not expand until the long-expected Condominium Law potentially opens the market to foreigners. In addition, the development of a mortgage market would also boost demand from mid-income buyers and potentially support a rise in prices
  • Despite the slowdown in residential sales, new projects were announced throughout the quarter, and new international developers and contractors continue to enter the market. The largest project to be launched in Q4 is the Polo Club Residence, which will add 375,000 sq m of residential and commercial space
  • Developers are beginning to compete for the title of tallest building in Myanmar, with the Shwegone Emotion Tower (32 storeys), Diamond Inya Palace (34 storeys) and Golden City (33 storeys) among the contenders
  • Contractors will likely continue to face higher construction costs than elsewhere in the region, with costs rising by between 5% and 10% per year. While sales price rises may have so far outstripped inflation in construction costs, the increase in property supply may mean that situation cannot continue indefinitely, raising risks for developers
  • In Q4 2014 the Myanmar kyat fell from Ks980 to Ks1,030 to the USD. A depreciating currency will have an overall negative impact on the market, as there are few hedging options available and contractors remain reliant on foreign-currency denominated imports for many buidling materials. A combination of these factors is likely to slow the completion of future supply
  • The government is increasingly looking to monetise centrally-located land in Yangon, and is seeking private-sector partners to build projects. In particular the Department of Human Settlement and Housing Development (DHSHD) and the Yangon City Development Committee (YCDC) are tendering build, operate, transfer (BOT) and public private partnership (PPP) contracts, and may continue to do so throughout 2015
  • Projects currently under development on DHSHD land that was formerly used for government housing include Golden Link Condo in Bahan Township, a condominium on 51st Street in Botahtaung Township, Sky Suites condominium in Yankin Township and a high rise project in Thuwanna Township
  • In addition, the government is increasingly focusing on the development of affordable housing and has plans to spend Ks100bn ($97m) on 10 low-cost housing projects across lower Myanmar in fiscal year 2015-16, eight of which will be in the Yangon region
  • Tenders for several of the projects have already been issued, and the remainder will be tendered to private companies over the next few months
  • Office prices have remained stable since mid-2014, but still remain high in comparison to the quality of stock. By 2018, total Grade A office space in dedicated, multi-tenant buildings is likely to reach at least 800,000 sq m, though we forsee significant delays in completing developments 
  • Real estate investment legislation is in flux. Major new laws expected to be enacted in 2015 include the National Building Code, the National Land Use Policy Law, the Housing Development Law and the Condominium Law. Concerns over legal issues, particularly land titling, remain a major issue
Sample pages
 
To read the table of contents and view a selection of sample pages, please click here.
 
To order a copy
 
The report is priced at $1,600, and can be ordered online and by phone or email.
 
To purchase a copy of the report online, click here
 
To order by phone, please call +95 92 5334 9604 in Myanmar, or +44 207 653 1914 (UK). Alternatively, please email our Business Development Director, Michael Guarino, on michael.guarino@frontiermyanmar.com
 
Subscribers to the Myanmar Real Estate and Construction Monitor receive four copies per year of the Yangon Real Estate Review as part of their membership package, which offers the best value access to our content.
 
For more information on subscription options, please go to realestate.frontiermyanmar.com/subscribe or contact us directly.
 
About Frontier Myanmar
 
Frontier provides local research and analysis for companies and organisations operating in Myanmar, one of the world's most exciting economies.
 
We offer custom, in-depth research into specific sectors or issues, helping clients better understand their business environment, while also publishing subscription-based information services focusing on specific industries, covering news, legislation, companies, projects and tenders.
 
Our first subscription service, the Myanmar Real Estate and Construction Monitor, was launched in June 2014.
 
Frontier Myanmar was incorporated as a Myanmar limited company in 2014 and is run by a team of local and international staff.