According to the latest Yangon condominium report from global real estate service provider, Colliers International Myanmar, providing favourable mortgage and deposit arrangements is set to bolster demand across the residential market.

“One of the major aspects constraining the development of the real estate industry, especially the residential sector, is the lack of a mature mortgage market,” said Mr. Paul Ryan Cuevas, Research Analyst of Colliers International Myanmar.

He goes further on explaining that access to capital remains a major hindrance for those who want to buy their own property in Myanmar. “This stems from the fact that affordability remains unaddressed. This very reason explains why sales performance of majority of condominium projects in Yangon remains at a low-slung level”, he said. As of Q4 2018, the citywide take-up rate remains at sub-60% level. While the prices have witnessed downward correction over the last three years, the amount remains substantial. This has contributed to concerns that some developers could not finish their projects because funding is often reliant on pre-sales.

Meanwhile, both figures of completions and unit launches increased towards the end of the year. In 2019, Colliers anticipate the total stock to reach a new record high, with most projects to be situated in the Outer City. “We encourage developers to start expanding their target market and introduce more low and mid residences. We predict that lower-tier but modern apartments and condominiums will witness better sales performance,“ said Mr. Kiana Trinidad, Senior Advisory Analyst of Colliers International Myanmar.

"Similarly, buyers are likely to gain more confidence towards basic but modern developments, smaller in size and priced more reasonably."

Given the relatively poor sales performance of the majority of condominium projects in Yangon, Colliers embolden developers to start expanding their target market and introduce more low and mid residences.

The eventual proliferation of mortgage and deposit provisions is seen to change the residential market, which traditionally has been out of reach for majority, especially low and middle-income earners. 

Click here to download the Colliers International Myanmar Yangon Condominium Market Quarterly Report Q4 2018

For more information about the report or to discuss the Yangon Condominium market phone or email Paul Ryan Cuevas Research Analyst for Colliers International Myanmar.

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