Sales at Peninsula Residences Yangon to commence this month
Singapore-listed Yoma Strategic Holdings together with its partners, Yangon-listed First Myanmar Investment Company Limited (FMI) and the Hongkong and Shanghai Hotels (HSH) will start selling housing units from the Peninsula Residences Yangon this month.
The Peninsula Residences Yangon is being developed on a 10-acre site in downtown Yangon at the junction of Sule Pagoda Road and Bogyoke Aung San Road. It is part of the $700 million Yoma Central mixed development project, which broke ground in February last year.
The Peninsula Residences Yangon, which will include 96 residential units, is expected to be complete in 2021.
It will be developed together with the Peninsula Yangon, a five-star luxury hotel, as part of the Yoma Central development. Two Grade A towers housing offices and a commercial hotel will also be built together with a retail complex.
When complete, the Peninsula Residences Yangon will house 26 floors comprising international standard, ready-to-stay, full-serviced apartments. Units will be two-bedroom, three-bedroom, four-bedroom, Penthouse and Terrace Penthouse.
The Peninsula Residences Yangon will be coming onstream at a time when competition in upper scale serviced apartments is expected to intensify. According to Colliers International, supply of services apartments is expected to double within the next three years.
Last year alone, new supply of serviced apartments in Yangon reached a high of 370 rooms last year, taking total available units to more than 2,000. At the end of last year, the occupancy rate was 81 percent, which is down 7pc year over year.
Notably, the most pronounced increase in supply was in the one-bedroom and two-bedroom categories, which are more affordably priced and for which demand is expected to increase in the years to come. Indeed, some serviced apartments last year achieved 60pc occupancy within three months of completion, according to Colliers.
Officials said though, that the launch of Peninsula Residences Yangon will be timely. In a statement released yesterday, Mr Cyrus Pun, executive director of Yoma Strategic, said “the time is right for us to introduce true luxury and exclusivity to the Yangon real estate market.”
Largest real estate project
The Peninsula Residences Yangon project is a partnership between Meeyahta Development and HSH, which operates The Peninsula Hotels globally. Meanwhile, Meeyahta Development is a joint-venture comprising Yoma Strategic, FMI, the Mitsubishi Companies, the International Finance Corporation and the Asian Development Bank.
Meanwhile, the rest of the Yoma Central project will be developed by Europe’s Bouygues Construction and Japan’s Taisei Corporation.
More than $700 million has been invested into Yoma Central, which is so far the largest amount of foreign direct investment channeled into the real estate sector, said U Aung Naing Oo, secretary of Myanmar Investment Commission.
“This project will bring exciting opportunities to businesses and revive the Yangon real estate sector. I believe it will become a strategic location where the citizens can meet one another without any restrictions,” said U Aung Naing Oo.