Across the city, the average occupancy rate has increased to just below 84%. Colliers anticipate a further upward movement in the second half of 2018 given the limited supply pipeline. 

For 2019, a decrease is likely temporary as demand prospects look positive. However, the trend should be more pronounced across lower-tier but modern serviced apartments. In fact, Colliers see a flight to quality, evident from the declining performance across older and poorly maintained serviced apartments. 

Many tenants are veering away from these older serviced apartments, moving into newer projects which despite being smaller in scale and equipped with basic facilities are functional and offer modern comforts. 

Colliers continues to urge developers to take particular interest in building more limited or mid-tier serviced apartments that offer smaller sized units such as studio and one-bedroom units offered at competitive rates. 

Source: Colliers International Myanmar 

As of Q2 2018, service apartment requirements still come mostly from:

• Oil and gas
• IT and telecommunications
• FMCG sectors
• MNCs

Furthermore, the government's announcement of new policies to encourage foreign investment should propel expatriate housing demand over time. 

Click here to view the Colliers International Myanmar Quarterly Review: Yangon Serviced Apartment Q2 2018.

For more information or to discuss the report, phone or email Karlo Pobre, Deputy Managing Director of Colliers International Myanmar or Paul Ryan Cuevas, Analyst for Research, Valuation and Advisory of Colliers International Myanmar via the contact details listed below. 

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