Development of real estate in Yangon started after Myanmar’s independence in 1948. This development has been encouraged and moved forward by the Myanmar Central Government. The recent highlights of the Government encouraging foreign investment and business developments are amending the Myanmar Companies Law so foreigners can own up to 35% of a Myanmar company and remain a Myanmar company, finalizing legislation which will allow foreigners to own a maximum of 40% of a condominium development.
The Kantharyar Centre is one of the latest milestone developments in Yangon. It is developed by Asia Myanmar Shining Star Investment Co., Ltd. (“AMSS”) and scheduled for completion in mid-2018. The Kantharyar Centre is situated within the new developing heart of Yangon on the south-eastern edge of Kandawgyi Lake, a picturesque tourist attraction and recreation spot, along Kan Yeik Tha Road and U Aung Myat Road. This location will avoid much of the noise and traffic congestion associated with the older areas of the city. The Kantharyar Centre will consist of four towers; a 5A class office tower – the first in Yangon, a Wyndham 5-star hotel, a 23-storey residential tower and a serviced apartment tower, all interconnected by a 2-storey 6,000m2 international standard shopping mall.
Request and Supply
The demand across all real estate in Yangon including the properties that meet international standards dramatically exceeded the supply which leads to high price record. Later the surge in supply of properties has led to the point that supply sectors have outpaced demand, leading to a softening in prices. While prices have softened and fallen significantly from the past highs, prices nevertheless remain higher compared to most other Asian countries. This softening has allowed buyers and lessors to become more discriminating with the quality of properties, preferring properties meeting international standards, an advantage the Kantharyar Centre offers as the first grade 5A office tower in Yangon and the newest residential and serviced apartment units.
Increasing the total supply to 1,500 units, the growth of international standard service apartment supply was slow with only 750 units added during 2013 to 2017. This meant that demand vastly outweighed supply, particularly from foreign companies entering the Yangon market and seeking rental property in Yangon for their foreign employees.
Commercial Office Space
When the international office space has been in short supply, Sakura Tower on Sule Pagoda Road attracted very high rental values. However, over the last three years, new office supply has been added allowing tenants to have more variety and achieve higher quality. Currently, the major commercial towers net leasable areas are; Sule Square 30,000m2, Myanmar Plaza 81,000m2 and Junction City 34,000m2. The Kantharyar Center will add an additional 38,000m2 of international standard office area.