Demand for new residential havens in more breathable space to increase in Yangon

Affluent families continue to opt for detached villas either as stand alone or in gated residential communities as the city's central neighbourhoods are turning congested according to Colliers International, but supply remains limited

Press Release (ePRNews.com) - YANGON, Myanmar - Jul 27, 2017 - Demand will be strong for master-planned gated residential communities going forward, according to Joshua De Las Alas, Senior Analyst at Colliers International. Mr. De Las Alas has defined master-planned gated residential communities as housing estates featuring special characteristics such as controlled security, well-defined lanes and pedestrian walkways, as well as shared amenities and facilities such as a clubhouse.

“With the increasing urbanization rate in Yangon, families are now looking for new residential havens with more breathable space, free from urban life stresses”, pointed out by Karlo Pobre, Associate Director at Colliers International Myanmar. “The key to successful developments is proper transport infrastructure, easing home and workplace mobility”, he added. In other neighbouring countries, gated residential communities are popular with distances being less than an hour away from the city centre thanks to proper road networks such as well dedicated highways and sky toll roads. Yangon is yet to see such improvements.

Colliers International has identified 10 notable gated residential developments in Yangon which collectively represents more than 3,400 units. While the supply of gated residential communities in the city remains small, the number of new projects is said to be modestly increasing. According to Mr. De Las Alas, there are approximately 189 new units launched in Yangon as of Q2 2017. These units consist of units from both new residential estates and additional phases to existing projects. Due to the limited stock, demand appears modest with an average of one unit being sold per month. “The cumulative take-up rate is currently above 70% with the remaining inventory, based on current sales velocity, estimated to be completely sold in a span of two to three years” said Mr. De Las Alas.

It has also been pointed out that majority of the developments are still considered as up-scale in terms of sizes and pricing. “There remains a widely untapped demand for modern quality lower-tier developments. At present, most pre-selling projects are positioned towards high-income segment of which represents only a small percentage of the population”, said Mr. Pobre. The current prices of such residences are said to range from USD400,000 to as high as USD1.1 million with an average lot size and floor area of 500 sq. m and 335 sq. m, respectively.

For the latest news from Colliers, visit Colliers.com or follow us on Twitter (https://twitter.com/Colliers): @Colliers

Source : Colliers International Myanmar

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CATEGORIES : Real Estate
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