Jason M. Murphy/MBT
American property consultancy firm Colliers’ predictions for the Yangon property market in 2016 are generally positive, but have identified some areas of development to keep various segments moving forward.
The report cites areas such as upscale hotels and condominium developers as two groups who could face some opposition in the coming year due to increased competition from new developers and an emerging mid-range hotel options throughout the country.
With the impending assignment of Daw Aung Suu Kyi as de facto president of Myanmar, Colliers concedes that there may be some easing of stress on these two afflicted industries.
The group also suggested that a rising demand for financing construction projects in the country could lead to a surge of both suppliers of financing and thus, a rise in construction through 2016.
“This represents a gradual transition of property as a storage of wealth to a more liquid-investment led market,” the report reads.
Housing complexes and serviced apartment markets are on the rise according to the report. With 2015 showing an all-time high in occupancy rates, the report indicates that this trend should continue, especially if the construction sector cannot keep up with demand.
Modern-style gated communities should also be on an uptick as more people flee from the smoggy, congested areas of downtown Yangon to the outer rims of the city that offer more living space.
Such flight to the suburbs also indicates townships such as Yankin could be on the verge of an economic boom to serve its newfound population. Colliers suggests that more developers are beginning to look at this are of the city to invest in, however, the report indicates that downtown Yangon will still be the largest player in economic activity for the city for quite some time.
In keeping with the flight from the hustle and bustle of the city, Colliers suggests that some investors may look into purchasing vacation homes in areas such as Ngapali and Ngwesaung as more tourists visit the country. This could provide an alternative to inflated prices of Yangon properties.
Finally, the report indicates that manufacturing jobs and the need for high quality office space should be on the rise with the influx of foreign investors looking into Myanmar and the development of the Thilawa Special Economic Zone.
While some companies will still be forced to rent their office space, many other wealthier groups could fill the gap in the market, especially if international sanctions begin to lift. Manufacturers could find good opportunities, but may have to endure the hardships of an emerging market.
From:Myanmar Business Today