Top 10 predictions for Yangon real estate in 2016
Top 10 predictions for Yangon real estate in 2016
We divine what lies ahead for Myanmar’s resurgent city
Some real estate brokers have doubts that property prices in Yangon will return to peak levels seen in 2013 and 2014. However, there’s enough hope to go around: Colliers International Myanmar predicts Yangon would see a stronger year, coming from a resilient 2015.
“Expect busier months ahead as the property market gears up to the next chapter in Myanmar’s economic history,” said Colliers Myanmar’s managing director Anthony Picon in a report released January.
As we cross halfway through the year, we divine what lies ahead for Myanmar’s resurgent city.
1–Myanmar’s new government will continue to fascinate
According to Colliers, foreign investors are keener than ever to get into the Yangon market, with Aung San Suu Kyi and her storied National League for Democracy party coming into power after years of resistance from a military junta. With the elections over and a new parliament in place, local realtors expect political stability and an overall more predictable environment for decision-making among investors in Myanmar’s bustling seat of government.
2–The Condominium Law will warm up the market
The recent loosening of rules regarding foreign ownership of condominiums should stimulate the market, according to the Myanmar Real Estate Services Association, per Frontier. Furthermore, Colliers predicts that condo developers will whip up creative ways to promote their offerings, perhaps by adding a commercial component like retail, office, and serviced apartments.
3–This will be the year of Yankin
The township of Yankin will prove to be a viable alternative business district to downtown Yangon. The centrepiece of the township is a USD440-million, mixed-use development called Myanmar Centre, which saw the opening of a shopping spot, Myanmar Plaza, and a Melia hotel last year. By 2018, the area will get a new shopping mall, in addition to several office and residential blocks.
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4–FDI will continue to pour into Yangon’s SEZ
Yangon’s Thilawa Special Economic Zone (SEZ) has attracted quite the attention from foreign markets, especially international manufacturing firms. Japan will take the lead in developing 500 hectares of the economic zone’s second phase, Zone (B), which should open for business by the end of 2016.
5–More residents will move to Yangon’s outskirts…
Colliers also predicted that buyers will show more interest in gated residential communities around the outer city zone this year.
6– …If not, farther.
Similarly, Colliers noted an emerging holiday-home market in tourist hubs like Ngapali and Ngwe Saung, offering a relaxing alternative to Yangon’s more urban offerings. The Myanmar government expects an influx of 6 million tourists this year, compared with 4 million tourists in 2015.
7–High-rise Yangon will get entangled with zoning plans
Bound by religious beliefs and tradition, Yangon has for the longest-time been a low-rise city. Recently, the government suspended the construction of high-end condominium blocks in a low-rise zone designated for the Shwedagon Pagoda, a tall Buddhist landmark. One of the halted developments was the Diamond Inya Palace Condominium, which, if completed, would have been Myanmar’s tallest building.
More: Huge luxury developments to change Yangon’s riverside skyline forever
8–Serviced apartments will still do good business
Along with the retail sector, serviced apartments in Yangon enjoyed exceptional occupancy and rental rates in 2015, Colliers reported. This demand should persist well into 2016.
9–Competitive prices for office space
Colliers acknowledges that Myanmar is still a frontier market and will thereby expect a surfeit in Yangon office stock this year. “The market will slightly favour the tenants, while landlords start to offer discounted rates and other incentives – at least in the near term,” Colliers predicts.
10–Buyers will be drawn to real estate like gold.
For Colliers, 2016 will mark a slow transitional period in which buyers will get more familiar with property as a liquid asset as much as a storage of wealth. “The real estate market is not like gold market because it is not linked with international rates,” Sai Khung Noung, owner of realtor Sai Khung Noung Company, told Frontier.
More: Myanmar to grow the fastest in Asia-Pacific this year
Source: Property Report