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 introduce more lower-tier offerings in the market. Over the past years, the share of pre-selling upscale condominiums remains excessive, driving the overall sales performance to continually dwindle.

As of Q1 2019, Yangon’s total stock of completed condominium developments reached almost 9,300 units. Meanwhile, the number of new sales launches have tempered down amid the sluggish sales performance.  “We continually encourage developers to revisit their strategies and perhaps give their offerings an overhaul in order to meet current market requirements,” said Mr. Hpone Myint Thu, Assistant Research Manager for Colliers International Myanmar.

In lieu of this, a number of developers have started venturing into the lower-tier segment which have in fact have seen signs of success. Colliers believes that future launches under the low and mid segments will potentially exert upward pressure on the overall sales take-up. Mr. Paul Ryan Cuevas, Senior Research Analyst for Colliers International Myanmar, enumerated the factors that are discouraging developers to further venture into this segment. “The high land values along with an onerous car parking regulation make it difficult for developers to justify more competitively priced products at smaller unit sizes. The lack of collective authoritative measures for Build-Operate-Transfer (BOT) land also remains to be a concern, especially for large-scale investments. We believe that changes in these regulations among others will be a major game-changer that could improve the business landscape for competitively priced products going forward. In fact, Colliers has already started initial discussions with key government agencies to help advise in multiple facets.”

Source: Colliers International Myanmar, 

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