In a recent Yangon retail market report released by Colliers International Myanmar, it was noted that while the citywide occupancy level remains at a healthy state, a slight decline was observed following the recent flight to quality for few tenants. Colliers believes it is worthwhile for older developments to embark refurbishments or redevelopments in their establishments. Looking ahead, the sizeable supply anticipated for the remainder of 2018 may exert downward pressure on occupancy – albeit at a lesser degree as tenant pre-commitments remain strong. “With the recent easing of trading restrictions in the country, we expect the entry of more foreign retailers wanting to set a foothold in the city,” said Mr. Paul Ryan Cuevas, Analyst for Research Department of Colliers International Myanmar.

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Meanwhile, no new retail development was introduced reports Colliers. This can be explained by the sluggish construction activity observed in several projects. Following the recent delays, Colliers have revised their forecast and they expect a record surge in supply to occur in 2019 instead. “As more developments are introduced and as competition further intensifies in the coming years, developers are advised to continually aspire for international standard quality and practices, said Mr. Joshua Delas Alas, Advisory Manager of Colliers International Myanmar. “Adopting these initiatives will drive value enhancement as well as help leverage over competition going forward,” he added.

Related reading: Get to know Joshua De Las Alas Manager at Colliers International Myanmar

Meanwhile, the average rental rate remained at the sub-USD 33 per sq m per month level, an increase of 3% from the same period last year.

The introduction of more quality standard malls means that rents may further trend upwards in the succeeding years.

The continuous entry of foreign brands, particularly F&B chains, is likely to reinforce uphill pressure on rents, however, to be capped at modest levels.

Click here to download the Colliers International Myanmar: Yangon Retail Market Quarterly Report Q3 2018

To discuss the Yangon Retail Market or the above report email Paul Ryan Cuevas, Analyst for Research Department or Joshua Delas Alas, Advisory Manager of Colliers International Myanmar via the contact details below. 

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