According to Colliers International Myanmar, Yangon's retail landscape performed well as of Q1 2018. In terms of total retail stock, it grew by 5% on an annual basis. "The increase was driven by the completion of Golden City Retail by Golden Land Real Estate Development Co., and Nature Link Co.,Ltd., Min Ye Kyaw Swar Tower by Crown Advanced Construction Co., Ltd., Super One by Super One Co., Ltd., and Ocean Super Centre by City Mart Holdings Co. Ltd.," said Ms. The Htet Oo, Research & Advisory Manager for Colliers International Myanmar. The real estate services firm expects substantial new completions in 2018, totaling close to 71,000 sq m (764,237 sq ft) of leasable area - a new record high. Looking ahead, additional stock in the next two years is meagre.

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While 2019-2020 supply appears limited, Mr. Paul Ryan Cuevas, Analyst for Colliers International Myanmar, Research and Advisory Department, see this as a green light for developers to pursue new and better projects like large-scale shopping centres and lifestyle-oriented centres offering both entertainment and recreational activities to capitalise on the city’s increasing young population and on the improving spending confidence especially from the lower-middle to middle-income buyers. "We encourage developers to position their retail projects along these key factors: differentiation of consumer offerings with a focus on experience; increasing efficiency of the current mall base through tenant mix diversification; and lastly, exploration of new formats and commercial real estate opportunities," Mr. Cuevas explained. "Going forward, developers must no longer envision themselves as just professionals who convert ideas from blueprints to real property, but instead as customer-facing providers of a modern retail experience," he added.

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Given the volume of stock delivered in Q1 2018, Colliers witnessed a marginal decline in the citywide occupancy rate, however, remained above 90%. "The anticipated hike in supply in 2018 is projected to exert a downward pressure on occupancy for the forthcoming quarters. However, strong pre-commitment rates should retain the number at an all-time high," said Mr. Karlo Pobre, Research and Advisory Associate Director for Colliers International Myanmar.  "We also observed that retailers have become more confident, apparent from the increasing number of store expansions and foreign franchise acquisitions. We expect occupancy moving further upwards; and this should in fact be facilitated by the lack of new supply starting 2019," he added. Meanwhile, the average rental rate remained at the USD 32 per sq m per month level. "We anticipate further introduction of higher quality projects to support premium rents in the near to medium term, to be capped in moderation in the next two to three years as competition among landlords may start to increase," Mr. Cuevas added.

For more information about the Myanamr retail market email Ms. The Htet Oo, Research & Advisory Manager for Colliers International Myanmar via the contact details below. 

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