Yangon's retail rental rates will continue to decrease into next year as the market experiences an ongoing downward correction, new research from Slade Property Services has revealed.

A Retail Snapshot for November has shown that average rental rates have decreased to US$28 per square metre per month, continuing a trend that began in 2016.

According to the report, it is likely that average rental rates will continue to decrease to roughly US$25 per square metre per month in the new year as consumer spending remains low.

Yangon November Retail Snaphot - At a glance:

• Average rental rates have continually fallen since 2016 and are currently at around US$28 per square metre per month.
• Occupancy rates at Junction City and Myanmar Plaza are now at 100 per cent, whilst Kantharyar Centre has bolstered to 80 per cent.
• Over 90,000 square metres of retail stock is due to come online between 2022-2023, however, delays will likely see a large proportion of this supply completed in 2024.

As of November 2019, there is a total of 977,424 square metres of existing retail stock in Yangon, with the opening of Time City and Terminal M having added over 50,000 square metres.

Despite the ongoing downward correction in rents, demand for the retail sector has remained strong, with the snapshot indicating occupancy rates at Junction City and Myanmar Plaza are now at 100 per cent, whilst Kantharyar Centre has bolstered to 80 per cent.

The report notes that international food and beverage outlets have proven to be particularly popular among a growing middle class. 

Looking ahead, more than 90,000 square metres of retail stock is due to come online between 2022-2023, but delays will likely see a large proportion of this supply completed in 2024.

Click here to view the snapshot. 

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