As more and more townships in Yangon go into lockdown as a result of COVID-19, the serviced apartment sector is expected to experience a long stall in demand and possible decline in occupancy, Colliers International Myanmar says.

According to the firm's Yangon's Serviced Apartment report for the first quarter of 2020, demand is set to be "largely impacted" by the repatriation of foreign workers, with Colliers recommending landlords implement flexible payment terms in order to adapt to the climate.

Colliers International Yangon Serviced Apartment report Q1 2020 -  At a glance: 

• Colliers expects demand to fall as the city battles the economic effects of COVID-19.
• No new supply was observed in Q1 2020, however a significant increase is expected in H2 2020.
• The citywide occupancy rate stood at 77.1 per cent.

Colliers Myanmar Research Analyst Thwe Thwe Soe said the downward pressure would be further exacerbated by a significant increase in supply expected to come online in the later half of 2020.

"This increase in upscale supply, coupled by the looming economic recession is expected to plummet occupancy rates going forward," she said.

Source: Colliers International

"Looking at it from a positive angle, COVID-19 signals a time sensitive opportunity to lock in competitive terms before the market fully recovers.

"Thus, during this time of crisis, Colliers encourages developers and serviced apartment operators to start exploring creative strategies that cater to the future of work such as providing facilities that complements work-from-home lifestyles."

Click here to download a copy of the report.

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