Colliers International Myanmar recently released its Yangon Condominium Market Quarterly Report Q4 2018.

The report states that towards the end of 2018, the citywide take-up rate remained below the 60% mark.

Related reading: Proliferation of credit and mortgage programs to reinforce demand - Colliers International

Given the relatively poor sales performance of majority of condominium projects in Yangon, we embolden developers to start expanding their target market and introduce more low and mid residences," says Colliers.

At a glance:

Demand: 

• Demand for low to mid-tier projects remain untapped. Providing favourable mortgage and deposit arrangements should bolster demand across the residential market.

Supply: 

• Both figures of completions and unit launches increased as of Q4 2018 In 2019, we anticipate the total stock to reach a new record high, with most projects to be situated in the Outer City. 

Take-Up: 

• Colliers recorded a point increase in the citywide take-up rate. We see the rate to realize a slight drop in the succeeding quarters given the surge of future developments in 2019.

Price: 

• Prices ranged between USD200,000 and USD800,000, from a mid market to a luxury category. Colliers believes that rates will become more competitive as supply builds up in the next three years.

"We predict that lower-tier but modern apartments and condominiums will witness better sales performance. Similarly, buyers are likely to gain more confidence towards basic but modern developments, smaller in size and priced more reasonably. The eventual proliferation of mortgage and deposit provisions is seen to change the residential market, which traditionally has been out of reach for majority, especially low and middle-income earners, says Colliers.

Click here to download the Colliers International Myanmar Yangon Condominium Market Quarterly Report Q4 2018

Aggregate supply to hit record high in 2019

As of Q4 2018, Colliers witnessed a meager increase in the total number of unit launches with the following 3 being the only condominium projects launched this quarter, prompting a 4% QOQ increase in the citywide launch figures.

1. Ngapali Construction Co., Ltd. ‘s New World Residence
2. Nan Htike Taw Win Residence
3. Royal Phoe Sein Avenue Residence

"On the other hand, an uptick in the overall condominium stock was recorded. The completion of 14 projects this quarter delivered more than 1,380 units into the total supply tally. Looking closely, the completed projects are mostly situated in the Inner City Area and are mostly under the upper-mid segment," says Colliers.

These included:

• Golden Link Condominium by Htike Sin Co., Ltd., Space @ Yankin by Crown Roofing Company,
• Red Hill Mix-Use Tower by Naing Group Construction Co.,Ltd.

Click here to download the Colliers International Myanmar Yangon Condominium Market Quarterly Report Q4 2018

For more information about the report or to discuss the Yangon Condominium market phone or email Paul Ryan Cuevas Research Analyst for Colliers International Myanmar.

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