By Carolyn Phoo Ngon
The COVID-19 pandemic has had an unexpected and significant impact on all aspects of people's lives with 2.6 billion (a third of the world’s population) across the world now living under some order of stay home quarantine. The real estate business, like the others, are affected by the COVID-19. What will happen to Myanmar real estate – residential industry?
We must take into consideration that before the COVID-19 outbreak arrived in Myanmar, our country was going through a good moment in terms of the economy and leasing industry. This fact is of vast importance since basic real estate, the rate of availability and the growth of income, were factors that were healthy. This hints us to think that until the condition becomes normal, we will be waiting for a market reactivation. The residential, and certainly the rental sector. In this crisis we are investigating heartening news from the professional owners of rental housing.
In the real estate sector, we can see that the epidemic has enhanced some trends already in proof, whereas other trends may inverse. For example, demand for online shopping has amplified and will likely continue, while the ongoing trend for the work and living space is now under analysis. Across sectors these trends differ and have speckled insinuations for real estate demand. We study each sector to see what their future features may look like.
Looking beyond the epidemic
The COVID-19 pandemic will undoubtedly change the way we live and work for the predictable future, and new trends will arise that will become part of our 'new normal.'
But what about the more recognisable structural trends which have been moulding the world over the past few decades? 'Mega trends' effect the real estate sector for many years – the development of corporate subcontracting; rising capital allocations to real estate; rapid urbanisation and city building; the adoption of new technologies; and the vital to build a more sustainable future and to take urgent action to combat climate change. Their role in forming the sector has been un-disputable over the past decade but, looking to the new post-pandemic world, what influence will they now affect?
All these trends look set to continue, even though with some new features and points of focus:
Growth in corporate subcontracting. The ongoing health crisis should fast-track the trend of outsourcing over the long term. Occupiers will increasingly real estate services to sustain business continuity.
Rising capital provisions real estate. The low interest rate environment and financial asset price instability will support the case for portfolio divergence. 'Flight to safety' in real estate, which continues to offer enhanced relative returns in comparison to other asset classes, looks set to increase.
Urbanisation. The epidemic is unlikely to slow the long-term trend in growing urbanisation, but will prompt a reconsideration in urban design, increasing the imperative to develop truly scalable smart city solutions, to put a much greater focus on public health and safety, and to deliver greater investment in community infrastructure.
Technology. The mass adoption of remote-working technology through the epidemic phase will likely increase the pace of the Fourth Industrial Revolution, including even more accent on robotics, the Internet of Things (IoT), Big Data, and unmanned vehicles.
Sustainability. There will be an increased highlight on corporate social responsibility, and through this, greater awareness of the delicacy of our society and ecosystem.
Our 'new normal' will take time to develop. New trends are already starting to take shape as governments, businesses and communities begin to adjust to the post epidemic environment.
Yoma Land, our approach focuses on developing large scale residential developments that transform vacant land at the periphery of the city into multi-national communities. Come check out our estates, Star City and Pun Hlaing Estate allows us to benefit from our strength in master planning and the flexibility in developing different types of products at its desired pace. The lush communal green spaces and tranquil living environment, botanical gardens and veggie farms of the estate offers low density living spaces for families.
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