A recently released report by property specialist SPS highlights both a high occupancy rate for retail spaces in Yangon as well as a continuing downward trend for rents.
With 100% occupancy rate at Junction City and Myanmar Plaza, 80% at Kantharyar Centre, the sector is still dynamic, surfing on the demand for international F&B outlets by the growing middle class.
The total available retail area in Yangon is now close to 1 Million sq.m. thanks to the opening of Time City and Terminal M. An additional 90,000 sq.m. will be available within the next 3-5 years.
This supply and increased competition has put a downward pressure on rents, at around $28 per sq.m. per month, down from a peak of $60 in 2016. The report concludes that this market correction will likely continue to reach roughly $25 per sq.m. in 2020.
