Demand for high-rise apartments drops in Yangon after quake

Sales of high-rise living spaces have slowed noticeably in the centre of Myanmar’s commercial hub, Yangon, since a 7.7-magnitude earthquake struck Myanmar nearly eight weeks ago, real estate agents said. Numerous reports of multistorey building collapses in Mandalay have prompted concern about the quality and structural integrity of high-rise condominiums elsewhere, causing a dip in buyer confidence in Yangon and bringing purchases to a near standstill, according to an agent at Rendezvous Real Estate in the city’s Lanmadaw Township. In Yangon’s densely populated downtown, prices for apartments in high-rise buildings have fallen by 20 to 30 percent in six contiguous townships: Botahtaung, Kyauktada, Latha, Lanmadaw, Pabedan, and Pazundaung. One condominium that previously had an asking price of around 1.3 billion kyat (US $297,000) is now on offer for between 850 and 900 million (US $194,000 to $206,000) and has not sold, the same agent said. Even units valued at around 100 million kyat (US $23,000) in high-rise buildings are no longer selling, he added. “Transactions for high-rise buildings have stalled amid growing public concern, with units from the sixth floor upward finding no buyers at all,” the agent explained. Despite the drop in sales activity, property prices remain largely unchanged, according to the owner of the Shwe Pyi Thit real estate firm. “There hasn’t been a significant drop in condominium prices. It’s just that market activity has cooled,” he said. Nonetheless, real estate professionals predict that it will take time for the high-rise markets to recover amid the effects of the earthquake as well as longer-term economic difficulties. Surge in purchases of houses, land While demand for high-rise apartments has fallen, real estate agents have noticed that stand-alone houses and land lots undamaged by the quake are still attracting buyers. “Buyers are shifting their focus to purchasing land,” the Shwe Pyi Thit owner said. He added that buyers are attracted by the cost effectiveness and better long-term return on land as compared with costly apartments and condominiums in the city centre. House and land sales have continued apace in townships outside of downtown such as Hlaing, Hlaingtharyar, North Dagon, South Dagon, Mayangone, and Shwepyithar, according to real estate professionals. Plots typically sell for just under 1 billion to 5 billion kyat (US $220,000 to $1.4 million) depending on size and location. Rental market still strong Yangon’s market for apartment rentals has remained stable. According to real estate agents, more people have been relocating to the city to escape the worst impacts of earthquakes, conflict, and poor prospects for employment. This has helped maintain demand that was already at high levels due to an influx of people fleeing conflict-affected areas. A housing complex in South Dagon Township, Yangon, seen in January 2021 (Photo: Myanmar Now). Rent prices have surged in the past year, even tripling for some properties. Fifth-storey rooms outside of prime neighbourhoods, which previously rented for around 200,000 kyat (US $46) per month, now typically fetch 400,000 kyat (US $92), according to a rental agent in Kamaryut Township who spoke to Myanmar Now. “Some escape the conflict and live in the city with their whole families for around six months, often without employment,” he said of the displaced people moving to Yangon. “As they depend entirely on their savings, it becomes difficult to sustain themselves, and eventually, some have no choice but to return to their hometowns, regardless of the circumstances.” The Mandalay market Even before the earthquake, escalating offensive operations by anti-junta armed groups since late 2023 have prompted thousands to flee their homes in northern Shan State, Rakhine State, and Mandalay Region and seek refuge in cities like Yangon, Mandalay, and Taunggyi, southern Shan State. The earthquake damaged property across vast swathes of Mandalay, and the scarcity of living space caused the already-high rents in the city to skyrocket. Units that previously rented for 300,000 kyat (US $69) per month are now going for between 800,000 (US $183) and 1 million kyat (US $230). Likewise, properties once rented at a million kyat are now priced as high as 3 million, according to a woman who is currently staying at a monastery after losing her home. “Houses in Mandalay that were not damaged by the earthquake are now being rented out at unreasonably high prices,” she said. “While some with financial means can afford the high rents, many others are finding it impossible, as short-term rentals of one or two months are rarely available.” The March 28 earthquake, which brought a death toll of more than 3,700 and injured more than 5,000, caused extensive damage across the cities of Mandalay, Sagaing, and the junta’s administrative capital, Naypyitaw, as well as surrounding areas and parts of Bago Region and Shan State. The disaster destroyed more than 67,000 houses and other buildings throughout the country, as well as thousands of schools and government offices and hundreds of healthcare facilities, dams, and bridges, according to figures released by the military regime.

Demand for high-rise apartments drops in Yangon after quake

After widespread reports of building collapses from the March earthquake, markets for real estate and apartment rentals in Yangon are showing a shift in demand from housing units on high floors to standalone houses and plots of land

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