Q4 2015 Yangon Real Estate Review now available

Our latest in-depth report on the Yangon property market is now available to purchase

The Q4 2015 Yangon Real Estate Review, updated and expanded from our Q3 2015 report, contains more than 250 pages of information collected from on-the-ground research.

It is an essential resource for companies involved in the property and construction sector, including developers, investors, banks, contractors, project managers, architects, materials suppliers and others.

Researched during the past three months by Frontier's local and international staff in Yangon, the review is the most comprehensive report on the fast-growing Yangon real estate sector.


ORDER A COPY ONLINE NOW 

 

DOWNLOAD TABLE OF CONTENTS AND SAMPLE PAGES 

 

SUBSCRIBERS CAN ACCESS THE REPORT HERE


The latest updated report features: 

Project profiles:

Profiles of more than 100 in-progress or prospective real estate projects in Yangon, with information on developer, size, current status, value, location, contractors/consultants, completion dates, sales prices and take-up rates.

Residential and commercial market analysis:

Background to the market, recent trends, key supply data, and our outlook

Data:

Includes our latest forecasts on future residential and office supply, township-level breakdown of the 2014 population census, YCDC building approval figures, and maps.

Developer profiles:

Profiles of over 70 private-sector Myanmar companies involved in real estate development, as well as local and state bodies relevant to the sector.

Township profiles:

Written descriptions and maps of key townships in Yangon, with major projects marked

Legislation:

An overview of the key laws governing real estate investment and development in Myanmar

 

Key findings include:

Residential 

  • Following a sharp slowdown in off-plan sales at the higher end of the market over Q4’14 and Q1’15, the pace of decline in uptake has levelled out over the past three quarters.

 

  • Many developers continue to report limited sales as speculative investors, who account for a large proportion of high-end unit sales, hold back until legislative and political changes are finalised.However, mid-range condominium projects have performed well over Q3’15 and Q4’15, boosting uptake in an otherwise slow market.

 

  • In Q4 we recorded three projects officially launched: Tritone Luxury Residence Complex, The Leaf Residence and The Lake Suites Tower 2. Launched with an average off-plan asking price of $246 per sq ft, this price point is higher than Q3 2015 but still below the 2015 average of $254 per sq ft. Throughout the past three quarters, strong sales at mid-range condominiums and at more realistically priced projects have helped lower this average. New entrants to the residential market include Golden Thitsar and Thai design firm Jarken. 

 

  • We estimate that private-sector developers intend to build around 18,000 high-end apartments in Yangon by 2019, though many 2015 timelines have already been pushed back into 2016. Nonetheless, condominium unit supply will have more than quadrupled between 2013 and 2017, according to our findings. 

 

  • Our short-term outlook is for sales to remain cautious until the post-election landscape becomes clearer, with not all poorly performing projects likely to survive this wave of investor caution and market competitions. The condominium law, if approved in 2016, may potentially shake up high-end residential sales growth, widening the buyer pool. A stable post-election political landscape is likely to trigger another wave of foreign companies seeking office and residential property as well as a renewed interest in infrastructure and public housing finance.

 

Commercial/Office 

  • Grade A office supply is steadily increasing and high prices have finally started to fall. This quarter, three new office buildings were completed, adding a total of around 17,000 sq m of new, purpose-built supply. Whilst the HAGL Myanmar Centre was inaugurated this quarter, its 81,000 sq m of office space is yet to come online officially. 

 

  • Asking prices for office space have flattened , reflecting demand for more moderately priced premises. Based on our research, developers plan to build at least 645,000 sq m of new Grade A space in Yangon by the end of 2018, but as with the residential market, this is likely to be pushed back due to delays and cancellations.

 

Political-Economic Landscape

  • Major new pieces of legislation are tabled for early 2016, including the long- awaited Condominium Law and the new Investment Law which was forwarded for discussion at the last session of the incumbent parlianmet.

 

  • YCDC issued around 6,800 building approvals in 2015, down marginally from the 2014 total of 6,913.

 

  • The Myanmar Kyat contined to decline, albeit less sharply following the election results in November. The depreciating currency continues to have a negative impact on the market, as there are no hedging options available, has increased construction costs for developers and contractors, and heightened general uncertainty. A number of projects are now converting their pricing to US dollars for greater security. 

 

  • While the national election slowed down sector activity prior to November 2015, its successful outcome has paved the way for new local and international entrants, with a number of large-scale project launches taking place before year-end or into early 2016. Local developer Myanmar V-Pile officially revealed the components of the 36.5-acre Secondary Central Business District (Mindhama) in Mayangone Township. The $345m BOT development expects MIC approval in early 2016.