YA N G O N

C O N D O M A R K E T S N A P S H OT  
Q3 2020

OVERVIEW
Yangon's residential segment continues to experience the adverse impact of the COVID-19 crisis and
social restrictions. In fact, a reduction in both condominium completions and appetite for both existing
and pre-selling units has and will continue to be the theme that will define the market until further clarity
arises. Nonetheless, with the government’s rigorous efforts to contain the virus, we expect to see
purchasing activity recover in 2021.

SUPPLY
Stay-home order, global supply chain disruptions, and manpower shortages continue to hold
back completions in the city. The rising number of unsold condominium inventory is also
compelling developers to either halt or entirely cancel new project launches.

The current conditions make San Yeik Nyein Condominium, East Race Course Condominium,
Royal Garden View by Yadanar Mying Construction Co., Ltd., Kanbae Tower A, and The Leaf
(Building A-D) the latest projects completed in the market. All projects mentioned above
were completed in H1 2020.

It would be best for existing players to showcase the integrated features of their
developments as these will likely be among the vital considerations of unit owners. Likewise,
it would be best to continue highlighting the sanitation and property management
procedures implemented within projects.

DEMAND
Sales velocity has further slowed down, with the high-end tier bearing the brunt, as buyers and
investors minimize spending and prioritize liquidity.

It was recently reported by the Ministry of Labour, Immigration and Population (MOLIP) that
nearly 300,000 Myanmar workers have lost their jobs both locally and internationally as
multiple businesses across key industries have closed. With the government projecting that
unemployment will rise further, residential demand will inevitably be impacted as household
spending is limited due to uncertainty.

SPS forecasts the market to come under increased pressure for at least the next three months as
the crisis continues to curb demand and sales activities,. However, the impact is likely to ease in
H1 2021, assuming the virus containment measures have been successful.

SELLING PRICE
A number of developers have been using aggressive marketing strategies in order to attract and
accommodate new buyers, while other projects opted to temporarily stop any form of sales
activities.

The rise in unsold inventory is one of the key facets in the market that contributes to softening
prices. With this, the majority of developers are and will continue to be more aggressive in
offering sizable discounts and to provide more flexible payment terms for pre-selling projects. To
this end, potential investors are encouraged to look at areas where there is a greater
concentration of unsold inventory, as developers are likely to offer more attractive packages for
these projects.

SPS is forecasting average prices to further soften in 2020. It is likely that we will see a recovery in
2021, which should follow the U-shaped economic recovery path forecasted by the government
and other multinational entities such as Asian Development Bank and World Bank.

CONTACT US
Sales & Leasing  I Valuation & Advisory I Market Research I Development Consultancy

Hugo Slade Yin Myat Thwe Theint Theint Thwin

Managing Director Senior Leasing Manager Valuation&Research Manager
+ 95 (0) 942 1058 866 +95 (0) 997 1095 777 +95 (0) 95 026 722
hugo.slade@sps-myanmar.com yinmyat.thwe@sps-myanmar.com theint.thwin@sps-myanmar.com

w w w. s p s - m y a n m a r. c o m

Copyright ©2019 SPS Myanmar. The information contained herein has been obtained by sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we

cannot guarantee it. No responsibility is assumed for its inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this

report.