Q2 2015 Yangon Real Estate Review now available
Posted on: 21/07/2015
Our latest in-depth report on the Yangon real estate market is now available to purchase.
The Q2 2015 Yangon Real Estate Review contains more than 230 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.
Key findings from the report include:
- This quarter has been characterised by an ongoing slowdown in off-plan residential sales, and cancellations or delays of new projects. Contributing factors have included uncertainty over planning, zoning and ownership issues, exchange rate volatility, overpricing of projects, and general caution in the run-up to the November 2015 elections.
- Our survey of projects found that the average off-plan asking price of commercially developed residential units fell by around 23% quarter-on-quarter, reflecting a reduction in asking prices at some existing developments, and new launches choosing to come in at lower price points to attract buyers.
- The cancellation in early July of five projects close to the Shwedagon Pagoda, most notably the high-profile Dagon City One, has sharpened existing concerns about zoning and planning in Yangon, and raised questions about investor protection in Myanmar.
- The Myanmar Kyat declined sharply against the US dollar in the second quarter, which has added to general uncertainty and also increased construction costs, given that a large proportion of materials and equipment are imported. Further, virtually all new developments are now priced in US dollars, rather than local currency.
- The pace of new entrants slowed in Q2, with a number of launches delayed until late 2015 or early 2016. Projects launched this quarter include the Ivy Condominium, Rosehill Residences and the first residential tower of the major HAGL Myanmar Centre, while new entrants to the market include Korea's Inno International Development, Malaysia's Naim Indah, and Thailand's CP Land.
- We now estimate that private-sector developers intend to build around 18,000 high-end apartments in Yangon by 2019, slightly lower than our projections in the previous quarter. An increasing number of delays and cancellations mean developers' targets will almost certainly slip further, however.
- Demand for office space has remained strong, although the more expensive Grade A projects have not performed as well as hoped and there is evidence that asking prices are flattening. Based on our research, developers plan to build at least 800,000 sq m of new Grade A space in Yangon by the end of 2018, but as with the residential market, this is likely to be pushed back due to delays and cancellations.
- Major new pieces of legislation on the property sector, including the Condominium Law, are unlikely to be approved until a new government is formed after the 8 November elections. However a new urban expansion plan for Yangon was approved by the region's parliament this quarter, with a first phase to the south-west of the city centre to be fast-tracked.
- Progress is being made on state and local authority-led affordable housing projects, with several tenders and new schemes announced this quarter, including the city's first affordable housing project with units for rent (as opposed to sale). The authorities plan to build eight new low-cost housing projects in the current fiscal year.
- Construction and planning on numerous bridges continued in Yangon this quarter, with a Japanese-led consortium starting work on the Thaketa bridge in June. The Ministry of Construction is to issue a tender for the Yangon-Dala bridge, while seven further bridges are planned across the Pun Hlaing river.
- Despite market uncertainty, new figures show an increased pace of building approvals in January-May by the Yangon City Development Committee (YCDC), particularly for buildings of less than four storeys in height.
- Our short-term outlook is for a continued slowdown in the speculative end of the market for the second half of 2015, with further delays, cancellations, and possible defaults or developer bankruptcies. However we believe that the underlying long-term fundamentals for the Yangon property market, such as economic and demographic growth, remain solid.
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, or 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.
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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, and in summer 2015 we launched the Myanmar Energy Monitor.
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