Yangon, a missed investment opportunity?

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WE were fortunate to be among the first real estate consultants to do business in Myanmar. Since 2012, we have seen a rapid transformation of the urban landscape in Yangon. During a recent trip to conclude a consultancy work for a Japanese client, we are glad to see some of our earlier consulting work completed or near completion and also played a part in bringing the positive changes to the city.

Download to read more: 201706 – Yangon, a missed investment opportunity – Herald June 2017 Issue

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Yangon Office Market Quarter Update 1Q2017

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We recently visited Yangon to check out some of the international quality office space. It is great to see that some of the well-specified buildings are being completed. The latest additions to the market are Junction City and Sule Square. Besides these, there are more large ones still at various stages of construction. Can Yangon continue to absorb the upcoming supply?

Read our report for more detailed analysis: FundPlaces_Yangon Office Market Quarter Update 1Q2017

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Yangon Office Market Update 4Q2016

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As at 4Q 2016, our Yangon Office Rental Index inched up 1.4% quarter-on-quarter and the market office occupancy also increased slightly to 67%. Looking ahead, we expect the office market to suffer some short term weaknesses due to the expected completion of a number of large projects.

With limited catalysts in sight, we advocate a more cautious stance on investment into new office development and maintain our negative outlook on the sector.

Click here for the full report: FundPlaces_Yangon Office Market Quarter Update 4Q2016

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Is Yangon’s real estate market ready for retail investors?

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Expectations were high when the new Government was elected last year. One year on, it has become apparent that a lot of work remain undone. Looking ahead, the ingredients for the growth of the real estate are in place, including the robust economy growth and the influx of foreign direct investments. What is the outlook of Yangon real estate market? Which sector to invest in? What should investors look out for when investing in Myanmar? We shared our thoughts in The Edge.

Click here for the full article: Is Yangon’s real estate market ready for retail investors

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Hong Kong Regains Title of World’s Most Expensive Office Market from London

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(Source: World Property Journal, 15 June 2016) Asia currently upkeeps 7 of the world’s Top 10 most expensive office markets. Now, Hong Kong (Central) has become the world’s highest-priced office market with overall prime occupancy costs of $290 psf per annum, displacing London’s West End which currently goes at $262 psf. Currently, global prime office occupancy costs – which reflect rent plus local taxes and service charges for the highest quality – have risen 2.4 per cent year-over-year. (more…)

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Investors look again at office property

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(Source: The Straits Times, 9 June 2016) BlackRock sold Asia Square Tower 1 to the Qatar Investment Authority for $3.4 billion ($2,720 psf) on Monday, while Indonesian tycoon Dr Tahir offered to buy the Straits Trading Building for $560 million, or a record $3,520 psf, last week. These two big deals occurred in the span of a week have suddenly perked up interest in the lacklustre office property market. Prominent assets like the One George Street building, Wilkie Edge near Selegie Road, Tower 15 at Hoe Chiang Road and the former SIA Building at 77 Robinson Road are just some properties said to be up for sale. Although investor interest for prime assets may rise due to the recent deals, some market watchers believe it is unlikely to cause a big revival in sales, due to the declining office rents.

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Keppel Land builds up Myanmar presence with expansions

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(Source: The Straits Times, 20 May 2016) Keppel Land is strengthening its hotel and commercial portfolio in Yangon, Myanmar’s rapidly developing leading city. The Singapore-listed property firm yesterday held a topping-off ceremony for its joint venture project, Junction City Tower, which is being developed jointly with Myanmar-based construction company Shwe Taung Group. Junction City Tower is a Grade A office building in Yangon’s central business district and will offer a net lettable area of about 34,000 sq m of prime office space. It is expected to be completed in early 2017. On 18 May 2016, it opened the new 431-room Inya Wing, bringing the total number of rooms to 797 at the Sedona Hotel Yangon, boosting Sedona’s portfolio in Myanmar to over 1,000 rooms.

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Is the sharing economy reshaping the office market?

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The sharing economy is reshaping the way we live, consume and use things and services. The consumption of office spaces has not been immune to that. As more and more individuals embark on their own entrepreneurship journey, demand for office space has taken on a different form. Traditionally, entrepreneurs have used the services of serviced offices. However, in developed markets, serviced offices are losing favour because of the increasing demand for coworking spaces. What are the key differences between them and is the latter a sustainable trend? (more…)

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Australia office markets start 2016 strongly as vacancy rates fall

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(Source: The Urban Developer, 14 April 2016) Australia’s national CBD office market vacancy rate fell slightly in Q1 2016 from 12.6% to 12.4%, with Sydney continuing to improve and Perth going from bad to worse. The JLL research showed the Sydney CBD vacancy rate tightened from 7.8% in 4Q15 to 6.8% in 1Q16 and that of Melbourne compressed to 9.2%, while in Perth nearly 25% of office space is empty. (more…)

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Coworking— a game changer in office space

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(Source:The Edge Property, 8 April 2016) Singapore welcomes its first Grade A office co-working space in the CBD. Collective Works has formed a 50:50 joint venture with real estate developer CapitaLand to operate a 22,000 sqft premium centre on the 12th floor of Capital Tower. The space is expected to be completed in June and targets to accommodate 250 small high-growth companies. Examples of such companies already utilising Collective Works co-working office spaces include Chope, an online reservation app which has already secured its Series B funding and ReFUEL4, a technology partner of Facebook. With the rise of  number and popularity of co-working spaces in Singapore, the problem of growing office vacancies in Singapore may finally be alleviated. (more…)

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