Q1 2015 Yangon Real Estate Review now available
Our latest in-depth report on the Yangon real estate market is now available to purchase.
The Q1 2015 Yangon Real Estate Review contains more than 220 pages of information, covering residential and commercial market analysis, developer profiles, data, legislation, maps, district-by-district profiles, and comprehensive details and maps of over 80 ongoing or future property projects in Yangon.
Researched during the past three months by Frontier's local and international staff in Yangon, this is an essential resource for companies involved in the Myanmar property and construction sector, including developers, investors, banks, building materials suppliers, contractors, engineering firms, architects, project managers and others.
VIEW TABLE OF CONTENTS AND SAMPLE PAGES
Key findings from the report include:
- The slowdown in off-plan residential sales, especially at the higher end of the market, has intensified in the first quarter of 2015. Several projects have reported few sales in recent months, with some discounting prices by as much as 10-15%.
- Greater hesitance from speculative cash buyers, uncertainty over zoning and planning rules, the continued absence of a mortgage market and the lack of progress on the Condominium Law are the chief causes of the slowdown.
- A flurry of new projects were announced or launched throughout the quarter, however, including Dagon City 2, Swedaw City, Skysuites Condominium and Pyay Tower and Residences. New international and local developers and contractors continue to enter the market, with underlying fundamentals, such as economic and demographic growth, remaining strong. Based on our research, over 2,000 high-end off-plan units were launched in Q1 2015, increasing competition further.
- We estimate that developers still intend to build at least 15,000 high-end apartments by 2019, but the future supply pipeline is increasing uncertain due to project delays, cancellations and investor uncertainty.
- New figures released this quarter showed that 2014 saw the highest-ever number of building approvals by the Yangon City Development Committee (YCDC), with the biggest growth for buildings with more than four storeys.
- Demand for office space has remained strong, particularly in the mid-range of the market. Developers may focus increasingly on commercial projects given the slowdown in residential sales. Based on our research, developers plan to build at least 800,000 sq m of new Grade A space by 2019, but there are concerns over market conditions and potential delays.
- Zoning and planning regulations remain in the spotlight. In February the government unexpectedly ordered work to be suspended on five major property projects under construction close to the Shwedagon Pagoda, ruling that an environmental review must be conducted. The freeze highlights the fact that no clear zoning regulations have yet been finalised by the city authorities.
- The government and local authorities continue to seek ways of monetising centrally-located land in Yangon through private-sector partners. In particular the Department of Urban House and Development (DUHD, previously the DHSHD) and the Yangon City Development Committee (YCDC) are tendering build, operate, transfer (BOT) and public private partnership (PPP) contracts, and may continue to do so throughout 2015.
- The regional government and the YCDC continue to focus on affordable housing, which is hugely oversubscribed. There are plans to build eight new low-cost housing projects in the Yangon region in the current fiscal year, with a tender to build a project at a 183-acre site in Dagon Seikken township announced in March.
- New figures on cement imports were released this quarter, showing that imports for the first three quarters of the 2014-5 fiscal year were already higher than the previous annual total. This is a reflection of the construction boom both in Yangon and nationwide, and of lower production by domestic plants.
- Real estate investment legislation is in flux. Major new laws expected to be enacted at some point in 2015 include the National Building Code, the National Land Use Policy Law (which was delayed again this quarter), the Housing Development Law and the Condominium Law.
- Changes to real estate tax law are expected in the 2015-6 fiscal year, while the draft of a broader new Myanmar Investment Law was also released this quarter. It is expected to be enacted later this year and may have an impact on the real estate and construction sector.
SAMPLE PAGES
To read the table of contents and view a selection of sample pages, please click here.
BUY A COPY
The report is priced at $1,600, and can be ordered through the website or by phone.
To purchase a copy of the report online, click here
To order by phone, please call +95 92 5334 9604 in Myanmar, or +44 207 653 1914 (UK). Alternatively, please email our Business Development Director, Michael Guarino, on michael.guarino@frontiermyanmar.com
Subscribers to the Myanmar Real Estate and Construction Monitor receive four copies per year of the Yangon Real Estate Review as part of their membership package, which offers the best value access to our content. For more information on subscription options, please visit our Subscribe page or contact us directly.
ABOUT US
Frontier provides local research and analysis for companies and organisations operating in Myanmar, one of the world's most exciting economies. We offer custom, in-depth research into specific sectors or issues, helping clients better understand their business environment, while also publishing subscription-based information services focusing on specific industries, covering news, legislation, companies, projects and tenders.
Our first subscription service, the Myanmar Real Estate and Construction Monitor, was launched in June 2014.