Unlike the developed markets in the region, Yangon’s serviced apartment market remains at a budding phase. According to a recent property market report released by the global real estate consultancy firm, Colliers international Myanmar, it would be crucial for future investors to conduct proper due diligence of the market to effectively acquire a sizeable stake in the city’s developing serviced apartment landscape.

As of Q1 2019, no new serviced apartments were introduced. As explained by Mr. Hpone Myint Thu, Assistant Research Manager for Colliers International Myanmar, completion dates of some developments were pushed further back to a later period. The cited delays have reportedly impacted Colliers’ supply forecast for 2019, recording a decline of more than 60% from the same period last year. “Nonetheless, we still see the aggregate stock to double in the next two years,” said Mr. Hpone. Meanwhile, the average occupancy almost reached 80%. As for the rental rates across unit categories, all have remained generally stable QOQ.

Given that competition is set to intensify in the coming years, Mr. Paul Ryan Cuevas, Senior Research Analyst for Colliers International Myanmar advises both developers and operators to remain strategic with their plans. “Investors are encouraged to take particular interest in understanding the dynamics of the market. A list of factors such as location, demand base, level of services, development quality, and rental rates are all deemed critical in realising the opportunities present in the market,” said Mr. Cuevas. “Specifically, this should drive developers and operators to continually diversify their offerings into more competitively priced products. Offerings catered to the underserved limited or mid-market should gain better traction moving forward,” Mr. Hpone added.

Click here to view the Colliers International: Quarterly Yangon Serviced Apartment Report Q1 2019

For more information about the report of the Yangon Serviced Apartment Market phone or email Paul Ryan Cuevas Analyst | Research & Advisory Colliers International Myanmar via the contact details below. 

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