Colliers International Myanmar recently conducted a market survey concerning the housing intentions, sentiments, and considerations of Yangon expatriates. Colliers designed a general serviced apartment preference survey to show an overall estimate of market needs and wants. Survey results revealed that majority of serviced apartment tenants are mostly from the Asian source market and are within the age range of 30-40. Regarding key considerations in choosing a serviced apartment, most tenants placed the highest regard on facilities and amenities, followed by location and price. As for housing budget, majority of these tenants set a monthly rental budget within the USD3,000-USD5,000 range, which is currently the average rent for a 1BR and 2BR in Yangon. This is immediately followed by a group of expatriates with a rental budget below USD2,000.

“Now that relocation and mobility has become more pronounced as key strategic initiatives amongst foreign companies, investors must align their development strategies accordingly with expatriates’ housing considerations,” said Mr. Paul Ryan Cuevas, Senior Research Analyst of Colliers International Myanmar.

"The influx of international companies has ultimately driven foreign manpower requirements skyward. This growth has greatly encouraged strong rental activity in the residential sector, specifically in the serviced apartment market," said Cuevas.

“On a larger scope, this trend should be strongly buoyed by the continuous exertions being taken and implemented by the government. As more key investment industries get liberalised, occupancy and take-up rates should similarly pick up going forward,” Mr. Hpone Myint Thu, Assistant Research Manager of Colliers International Myanmar.

In the meantime, as of Q2 2019, the citywide occupancy rate settled at the 80% mark, driven by the absence of new projects since Q1 2019. We anticipate a further upward movement towards the end of the year given the limited supply. Meanwhile, rental rates across categories declined by 3.5% qoq on an average. The rise in competition in the next two to three years should exert further downward pressure on rental levels.
 
Click here to download the Colliers International Myanmar Yangon Serviced Apartment Market Report Q2 2019 report.

Source: Colliers International Myanmar

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