Condominium rental market bearish despite higher demand

Even though demand is rising, condominium rentals for foreigners have decreased by 10 percent this year, Dr Htoo Myat Naing from Estate Myanmar told The Myanmar Times on October 9.

“Previously, rentals were increasing or stable. The decreasing [rentals] this year is happening for the first time. I don’t foresee it climbing back up. This is a result of more people wanting to rent detached houses and an increase in the number of condo projects,” he said.

With more options available to renters, Westerners and people moving in with families are choosing to rent detached houses. There are more available detached houses in Bahan and Kamaryut townships in Yangon now, said an agent from Foreigner Condo Rental Agencies.

Meanwhile, renters from Thailand and Japan, who are more interested in condos with swimming pools, gyms and parks, also have a greater variety of options to choose from.

In the current market, detached houses put up for rent at around US$3000 and $4000 are experiencing high momentum, while condos rented out for around $1500 and $2500 are in demand.

Rentals for condos and detached houses which are over 10 lakhs are 80pc occupied by foreign tenants while the ones below 10 lakhs have a balance of both foreign and local tenants.

Dr Htoo Myat Naing revealed that rental transactions during certain months, such as January, February, October and November are higher as opposed to April and mid-December where transactions are much fewer.

There is more demand for rented properties during travelling season and after Thingyan, when the transfer of staff from companies occurs, real estate agents said.

“As it is now with the beginning of the holiday season, there are many who are taking leave. I think there would be more rental activity in mid-October,” they said.

Source : Myanmar Times

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