There were 272 new condominium units completed for the quarter which led to a total stock of more than 4,400 units. The number is estimated to grow by 40% following the completion of 16 new residential projects in the remainder of the year.
Given the substantial project launches witnessed in the last two years, building completions should lead to a significant growth in stock going forward. Colliers estimates that there will be 10,118 units scheduled to complete in the next three to four years. However, with the recent weakening of sales, some of these projects may experience delays, with completion dates likely to be extended to a later date.
The number of sales launches dropped by 66% compared to the same period last year – an expected result given the lackluster performance witnessed especially in 2015. New project launches include Kanbae Towers and Tritone Towers, collectively consisting of more than 600 units.
The average take-up rate further declined albeit at a lesser magnitude by 3% QoQ to 51%. The rate is likely to improve should the number of project launches grow at a modest pace. Nonetheless, the mid-market segment appears to be resilient registering a relatively strong sales take-up of 56%. Meanwhile, the introduction of the condominium law is likely to stir further demand. However, the implementation of the law has yet to be initiated.
Despite the sluggish sales activity, there was no significant reduction in prices recorded. However, some sales offices which temporarily shut down are starting to review their sales price schedule. On the other hand, some of the recently launched projects are now aimed to sell between $1,500 to $2,500 per sq m, relatively lower than many of the developments introduced in the past.
[In association with Colliers]
Source: Myanmar Business Today
Jul 21, 2016