International company influx boosts Yangon serviced apartment market

George Sell George Sell Uploaded 06 September 2019

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Myanmar: Colliers International Myanmar has conducted a survey in to the Yangon ex-pat serviced apartment market.

Colliers designed a general serviced apartment preference survey to show an overall estimate of market needs and wants. Survey results revealed that majority of serviced apartment tenants are mostly from the Asian source market and are within the age range of 30 to 40.

When choosing a serviced apartment, most tenants placed the highest importance on facilities and amenities, followed by location and price. The majority of these tenants set a monthly rental budget within the US$3,000 to $5,000 range.

“Now that relocation and mobility has become more pronounced as key strategic initiatives amongst foreign companies, investors must align their development strategies accordingly with expatriates’ housing considerations,” said Paul Ryan Cuevas, senior research analyst of Colliers International Myanmar. "The influx of international companies has ultimately driven foreign manpower requirements skyward. This growth has greatly encouraged strong rental activity in the residential sector, specifically in the serviced apartment market."

"As of Q2 2019, the citywide occupancy rate settled at the 80 per cent mark, driven by the absence of new projects since Q1 2019. We anticipate a further upward movement towards the end of the year given the limited supply. Meanwhile, rental rates across categories declined by 3.5 per cent qoq on an average. The rise in competition in the next two to three years should exert further downward pressure on rental levels," said Hpone Myint Thu, assistant research manager of Colliers International Myanmar.

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