The retail rental sector in Yangon had an impressive run in the first few months of this year as the amount of occupied shop space reached “unprecedented levels” and rents grew at the fastest rate recorded to date, real estate analysts have said.
Occupancy rates hit 94.6 percent in the first three months of 2017, up 5.7 percent from the same period the year before, researchers from the Myanmar branch of Colliers International said.
“The demand for retail space continued to trend upwards despite the sizeable stock added during the quarter,” the company’s quarterly update said.
“Space requirements are continually led by food & beverage as well as clothing and footwear, of which some are represented by foreign labels. In fact, local businesses are gaining more confidence with international franchises amid the rise in consumer aspiration towards global brands,” the researchers said.
Meanwhile citywide rental rates “surged by 11.4 percent” quarter on quarter, which Colliers described as “the highest growth recorded to date.”
“In the next twelve months, Colliers predicts the average rents to continually move upwards but at a more modest growth,” the researchers said.
The total amount of retail stock available for lease or being leased grew 19 percent from the previous quarter, bringing the amount of leasable space to more than 300,000 square metres.
The Junction City Shopping Centre, with about 40,000 square metres of space, played a large role in boosting that total. But Colliers said several are major projects were due to launch this year.
“The quality of new upcoming developments appears promising, being mostly integrated into future mixed-use developments,” the update said.
“In 2017, some projects expected to complete are Junction Square Extension by Shwe Taung, City Mall St. John by City Mart Holdings, Yadanar Mall (Time City) by Crown Advance Construction and Fortune Plaza by Excellent Fortune Development Group.”
The company recommended that new shopping malls should “differentiate their offerings with an integration of entertainment facilities, considered limited in the city.”
Source: Myanmar Business Today
