Colliers Yangon Serviced Apartment News Release Q4 2018
According to the latest quarterly serviced apartment report from global real estate service provider, Colliers International Myanmar, there is a strong untapped demand for modern quality limited serviced apartments and dedicated apartments for lease. There is similarly a notable shift in the overall unit mix favouring one and two-bedroom units. “This should pose opportunities for both developers to continually diversify their offerings into more competitively priced products. Specifically, we expect smaller-scale developments of basic but functional features to gain better traction moving forward,” said Mr. Paul Ryan Cuevas, Research Analyst of Colliers International Myanmar.
As observed in most Yangon serviced apartments, studio units are generally almost fully occupied, while the one and the two bedrooms lease faster than the remaining others. The real estate firm sees demand to continually lean towards these unit types, evident from the healthy performances of few serviced apartments. Overall, Colliers forecasts further downward movement in the first half of 2019 is probable given the surge in future supply.
Meanwhile, the anticipated rise in competition should exert downward pressure on rental levels in the next two to three years. Colliers expects overall rates to further correct downwards in H1 2019, and to increase modestly from H2 2019 – H1 2020 as supply pipeline gets thinner. “We advise future developments to be more discerning with their construction cost and cautious with their rental projections,“ said Mr. Kiana Trinidad, Senior Advisory Analyst of Colliers International Myanmar.