The Colliers Quarterly Review - Yangon Serviced Apartment Report Q4 2017 has been released showing that unit configuration has shifted towards smaller units and rents correct downward amid competition.

"This will perhaps be more pronounced in the upscale segment. In fact, the entry of higher quality projects in 2017 has already driven rents towards more competitive levels. There is similarly a notable shift in the overall unit mix favouring one and two-bedroom units.  Despite the price correction, affordability remains unaddressed. Colliers still sees strong untapped demand for modern quality limited serviced apartments and dedicated apartments for lease. We urge developers to focus on these segments instead." Says the Colliers report.  

Forecast at a glance

• Demand: Expatriate housing requirements should continually increase at least in the near to medium term. However, there remains widely untapped demand for lower-tier but modern quality serviced apartments.     
• Supply: We expect supply to double in the next two to three years. More than 2,500 units are slated for completion in both 2019 and 2020 alone.
• Occupancy Rate: The considerable rise in upscale developments should exert downward pressure on overall occupancy going forward.   
• Rent: Rents are becoming competitive but remain generally high. We expect the downward correction to become more pronounced starting2019 as new supply heightens.

Click here to download the Colliers Quarterly Review - Yangon Serviced Apartment Report Q4 2017.

During 2017, new supply grew by39% YOY with an additional 370 rooms-a new record high over the past five years. The considerable rise was driven predominantly by the opening of Lotte Serviced Apartments in Q3 2017. In fact, this large-scale upscale development represented 85% of the added stock for the year. Meanwhile, other completed projects are in the lower-tier segment, namely Northern Inya Serviced Apartment as well as Clover Suite Royal Lake (expansion) and SOHO Diamond (expansion). The year ended with the city-wide stock reaching more than 2,000 units. Reductions in inventories were also recorded following renovation works in some developments

Click here to download the Colliers Quarterly Review - Yangon Serviced Apartment Report Q4 2017.

For more information on the Colliers Yangon Serviced Apartment Report or to discuss the Yangon property market phone or email Karlo Pobre from Colliers International Myanmar via the contact details below.

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