Coilliers International Top 10 Predictions for 2016

*This will be the style for footnotes.

YANGON PROPERTY

MARKET TOP 10 PREDICTIONS FOR 2016

Colliers International

Research & Advisory

“DESPITE HEADWINDS, YANGON’S

PROPERTY MARKET REMAINED OVERALL

RESILIENT IN 2015.

THE RETAIL AND SERVICED APARTMENT

SECTORS PERFORMED EXCEPTIONALLY

WELL LEADING WITH HEALTHY OCCUPANCY

AND RENTAL RATES.

OFFICE REQUIREMENTS CONTINUED TO

RISE ALBEIT AT A SLOWER PACE. THE

TAKE-UP RATE WAS HAMPERED BY THE

SUDDEN SURGE IN NEW SUPPLY – A

COMMONPLACE OCCURRENCE IN A

FRONTIER MARKET SUCH AS MYANMAR.

THE POSITIVE INTERNATIONAL REACTION

TO THE RECENTLY CONCLUDED GENERAL

ELECTION BODES WELL FOR THE

PROPERTY MARKET. COLLIERS SEES A

STRONGER 2016, ESPECIALLY WITH

FOREIGN INVESTORS KEENER THAN EVER

TO PENETRATE THE MARKET. EXPECT

BUSIER MONTHS AHEAD AS THE PROPERTY

MARKET GEARS UP TO THE NEXT CHAPTER

IN MYANMAR’S ECONOMIC HISTORY.”

Tony PiconManaging Director


Myanmar


YANGON PROPERTY MARKET | TOP 10 PREDICTIONS 2016

“ The successful launch of

Thilawa Special Economic Zone

boosts the overall investors’

confidence. More

manufacturing firms will

become more persistent with

their site search and selection

process. However, most will

have to contend with a very

nascent market”

INDUSTRIAL MARKET WILL FLOURISH


Research & Advisory



ALL-TIME HIGH OCCUPANCY FOR

SERVICED APARTMENTS TO PERSIST


Research & Advisory

“This year’s 321 additional

keys is meager as opposed to

the increasing corporate

housing requirements; a longer

wait list especially for well-

sought residences is expected,

while demand for limited or

non-serviced apartments will

become more evident.”



UPPER-SCALE HOTEL MARKET TO

FACE STRONGER HEADWINDS


Research & Advisory

“A further decline in ADR will

occur this year as majority of

the upper-scale hotels continue

to receive lowering occupancy

rates. The substantial addition

of new supply and the

competition arising from mid-

grade hotels will exert

downward pressure on daily

rates. Post election euphoria

may help buoy the sector.”



MORE FINANCING NEEDS AND

CHANNELS FOR DEVELOPMENTS


Research & Advisory

The rising costs of

construction for international

quality projects means both

local and international players

require financing which is

likely to be more pronounced

in 2016. This represents a

gradual transition of property

as a storage of wealth to a

more liquid investment-led

market.




Research & Advisory

CONDOMINIUM DEVELOPERS TO

RETHINK STRATEGIES

“The lackluster market

performance over the last two

years will drive condominium

developers to re-design their

product offerings – integrating

commercial components (e.g.

office, serviced apartments,

retail) will most likely be the

case.”



LANDLORDS TO OFFER OFFICE RENTAL

RATES AT COMPETITIVE LEVELS


Research & Advisory

“A competitive playing field

is anticipated given the

surge in new office supply.

The market will slightly

favour the tenants, while

landlords start to offer

discounted rates and other

incentives – at least in the

near term .”



YANKIN TO EMERGE AS A NEW

COMMERCIAL & BUSINESS HUB


Research & Advisory

“HAGL’s Myanmar Centre

strengthens the already rising

commercial activity in Yankin.

More developments are

underway paving the rise of a

new commercial hub.

However, Downtown will

remain a key business district

in the long term.”



“The rise in construction

activity suggests restricting

space for landed residences

in the future. The demand

for new residential havens in

more breathable spaces,

such as in the outer city

zone, will become more

noticeable.”

STRONGER INTEREST FOR GATED AND

EXCLUSIVE RESIDENTIAL COMMUNITIES


Research & Advisory




Research & Advisory

FLIGHT TO BETTER QUALITY OFFICE

BUILDINGS WILL BECOME MORE EVIDENT

“Both incoming market

entrants and existing

tenants will start to move

to newer and better

quality office buildings.

However, for some, rental

rates may still remain a

key consideration.”



HOLIDAY RESIDENCES TO BECOME A

NEW INVESTMENT OPTION


Research & Advisory

“Leisure destinations such as

Ngapali and Ngwe Saung will

open up new investment

opportunities. Buyers will

strongly consider holiday

residences as a new alternative

option to Yangon properties. “


Tony Picon

Managing Director | Myanmar

+95 942 103 4026

antony.picon @colliers.com

Karlo Pobre

Senior Manager | Research & Advisory

+95 931 336 099

[email protected]

Colliers International | Myanmar

Room No. B 803, 8/F., Tower B,

Myawaddy Bank Luxury Complex,

No. 151, War Dan Street,

corner of Bogyoke Aung San Road,

Lanmadaw Township, Yangon, Myanmar

TEL +95 9 314 916 78

Coilliers International Top 10 Predictions for 2016

Real Estate

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