About
Market trends and strategic insights across Yangon’s commercial, hospitality, and residential sectors for H1 2023
Summary & Recommendations
Recovery at a sluggish pace Low to mid-tier condominiums are witnessing record sales growth in the recent months. Despite this, developers are advised to be prudent with their construction cost as well as be cognizant on their land acquisition cost to help keep healthy profit margins going forward.
Grade C offices are gaining traction as rents reach new record lows. Many tenants continue to adopt cost saving measures and is likely to remain the trend in the near to medium term. Landlords are then advised to prioritize their building maintenance efforts to ensure sustainability in occupancy levels.
Though the provisions of short-term stays in serviced apartments and long-term stays in hotels helped buoyed occupancy levels, demand remains underwhelming. Landlords are continually advised to keep operating cost at manageable levels while also sustaining overall rents competitive.
Enbloc sales especially for commercial assets continue to face headwinds despite the lowering value of certain properties. Off-shore transactions are almost impossible following onerous overseas payment policies as well as the rising parallel dollar exchange rates.
