Yangon’s total retail stock at the end of the third quarter sat at 374,000 square metres of leasable space with no new addition to the existing supply, according to a report from Colliers International Myanmar.

Speaking about Colliers Yangon Retail Market Report Q3 2020, Research Manager Hpone Myint Thu said the resurgence of Covid-19 in late August and subsequent restrictions in September posed further challenges for tenants as well as landlords.  

“In retrospect, it has become clear that the stay-at-home measures appeared insufficient to fend off Yangon from the upsurge in cases and so did the stringent restrictions that came later,” he said.

Colliers noted that the citywide average rental rate stood at USD23.4 per sq metre per month, a decline of 8.9 per cent and 20.3 per cent on quarterly and annual bases.

The report states that fashion and lifestyle tenants may begin renegotiating their existing lease agreements with landlords before the end of 2020.

Colliers Myanmar Head of Property Management Ariel Vitor said further adjustments in rental were expected across all major retail malls as many continued to suffer from plummeting footfall.

“We recommend developers to remain cognizant, continually adopt best practices and plan innovative safety standards," he said.

"This eventually could help rebuild confidence and over time entice mall-goers as the market gradually recovers."

Mr Hpone said developers were encouraged to repurpose the use of their vacant spaces while continuing rental reliefs and renegotiating the leases with their existing tenants.

"We recommend to also consider repurposing vacant spaces for alternative uses such as offices, showrooms, activation centres, and institutional facilities among others," he said.

"With the rising popularity of online shopping platforms, retail spaces may also serve as distribution centres in town for many retailers. This, perhaps, should mitigate the impact at least temporarily."

Click here to download the report.

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