Authored by the expert who managed and guided the team behind the Myanmar Property Pack
Yes, the analysis of Yangon's property market is included in our pack
Yangon's rental yields currently range from 6-8% for condos and 5-7% for landed houses, making it one of the highest-yielding property markets in Southeast Asia. Central areas like Downtown and Yankin deliver stronger yields despite higher purchase prices, while outer townships offer attractive entry points with solid returns driven by urban migration and limited supply.
If you want to go deeper, you can check our pack of documents related to the real estate market in Myanmar, based on reliable facts and data, not opinions or rumors.
As of September 2025, Yangon's rental market offers compelling yields of 6-8% for condos and 5-7% for houses, significantly outperforming regional capitals like Bangkok (4-5%) and Ho Chi Minh City (5-6%).
Central townships command premium prices but deliver stable returns, while outer areas provide lower entry costs with equally attractive yields due to growing rental demand from urban migration.
| Property Type | Average Yield | Monthly Rent Range (Lakhs) | Purchase Price Range (Lakhs) |
|---|---|---|---|
| Small Apartments (<60 sqm) | 7-8% | 4-5 | 3,000-4,500 |
| Mid-sized Condos (60-100 sqm) | 7-8% | 22-26 | 4,200-6,900 |
| Large Apartments (>100 sqm) | 5-6% | 40-60 | 8,000-12,000 |
| Landed Houses (Central) | 5-7% | 35-50 | 10,000-14,500 |
| Commercial Units | 7-8% | 70-100 | 12,000-18,000 |
| Outer Township Properties | 6-8% | 15-25 | 3,000-8,700 |
| Serviced Apartments | 8-10% | 30-80 | 5,000-10,000 |
What are the current rental yields for different property types in Yangon?
Yangon's rental market delivers strong yields across all property categories as of September 2025.
Condos in central areas generate yields between 6-8%, with premium locations in Downtown and Bahan townships hitting the higher end of this range. The strong performance comes from consistent demand from expats, local professionals, and corporate tenants who prefer modern amenities and central locations.
Landed houses offer slightly lower returns at 5-7%, reflecting their higher acquisition costs and appeal to a more specific tenant segment. Older houses in established neighborhoods tend toward the lower end, while renovated properties in prime areas can achieve 7% yields. The rental market for houses remains stable due to demand from families and long-term residents.
Commercial units present attractive opportunities with yields averaging 7-8% in established business districts. Retail spaces and office units benefit from Yangon's position as Myanmar's commercial hub, though location significantly impacts performance.
It's something we develop in our Myanmar property pack.
How do rental yields vary between central and outer townships?
Central townships like Downtown, Bahan, and Yankin command premium prices but deliver stable yields around 7-8%.
These established areas benefit from infrastructure, proximity to business districts, and consistent tenant demand. A 60-square-meter condo in central Yangon typically costs 4,200-6,900 lakhs but generates monthly rents of 22-26 lakhs, supporting healthy yield calculations despite higher entry costs.
Outer townships including North Dagon, South Dagon, and Hlaingtharya offer compelling alternatives with yields matching or exceeding central areas at 6-8%. The key difference lies in acquisition costs—condos in these areas average around 3,000 lakhs, while houses range from 6,300-8,700 lakhs.
The yield similarity between central and outer areas reflects Yangon's urban expansion and infrastructure development. Improved transportation links and growing commercial activity in satellite townships have increased rental demand, maintaining attractive returns for investors willing to target these emerging areas.
What yields can I expect based on apartment size?
Smaller apartments consistently deliver the highest yields in Yangon's rental market.
Apartments under 60 square meters achieve yields up to 8% due to strong demand from office workers, young professionals, and small families. These units typically rent for 4-5 lakhs monthly and have purchase prices starting around 3,000-4,500 lakhs, creating favorable yield calculations.
Mid-sized apartments between 60-100 square meters generate solid yields of 7-8%, with monthly rents averaging 22-26 lakhs. These properties appeal to established professionals and small families seeking more space while remaining affordable.
Large apartments and penthouses over 100 square meters see yields taper to 5-6% due to higher acquisition costs. Monthly rents range from 40-60 lakhs, but purchase prices often exceed 8,000-12,000 lakhs. These properties primarily attract expat executives and wealthy local families, creating a smaller but stable tenant pool.
The inverse relationship between property size and yield reflects Yangon's income distribution and housing preferences, where demand remains strongest for affordable, well-located smaller units.
What are the total costs when buying property for rental income?
Property acquisition in Yangon involves significant additional costs beyond the purchase price.
Stamp duty adds 4-5% to your total investment, while commercial tax on the transaction contributes another 3%. Legal fees and agent commissions typically account for 1-2% of the purchase price, bringing total one-off costs to approximately 8-10% above the property value.
For a modern 60-square-meter condo priced at 5,409 lakhs (approximately $256,000), you should budget an additional 430-540 lakhs for taxes and fees. This brings your total investment to around 5,840-5,950 lakhs before considering any renovation or furnishing costs.
Annual ongoing costs remain relatively minimal for private owners. Rental income faces progressive taxation based on Myanmar's income tax rates, but property taxes are generally low. Maintenance costs vary by building age and quality, typically ranging from 0.5-1% of property value annually.
Foreign buyers face additional restrictions and should budget for legal consultation to ensure compliance with ownership regulations and proper structuring of their investment.
Don't lose money on your property in Yangon
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How does mortgage financing impact rental yields compared to cash purchases?
Mortgage financing significantly reduces net rental yields in Yangon's current lending environment.
Most local banks require 30% down payments for home loans, with typical mortgage rates hovering around 10-14% annually for local currency loans. These high interest rates substantially impact your net returns, potentially reducing yields from the gross 7-8% down to just 3-5% after mortgage payments.
Cash buyers retain the full yield advantage, capturing the complete 6-8% returns that make Yangon attractive compared to regional markets. The math becomes particularly challenging when you factor in currency risk for foreign borrowers and the limited availability of USD-denominated mortgages.
The financing landscape also limits mortgage terms and can require significant guarantees or collateral beyond the property itself. Many successful investors in Yangon's market either purchase cash or use mortgage financing from their home countries secured against other assets.
For investors considering leveraged purchases, careful analysis of total borrowing costs, currency exposure, and potential property appreciation is essential to determine if financing makes economic sense given current lending conditions.
What monthly rents can I realistically expect for each property type?
Yangon's rental market shows clear pricing tiers based on property type and location as of September 2025.
Basic apartments in outer townships start around 5 lakhs monthly, while mini condos in midtown areas command approximately 9 lakhs. These entry-level options serve local professionals and small families seeking affordable housing in decent locations.
Prime condos in central areas achieve monthly rents of 23 lakhs, reflecting their modern amenities and prestigious addresses. Large houses suitable for families or expat executives range from 35-50 lakhs monthly in central townships, with premium properties exceeding these figures.
Commercial properties command higher absolute rents, with office and retail spaces averaging 74 lakhs monthly on main roads and business districts. High-end commercial properties like hotels and restaurants can achieve 257 lakhs monthly, though these require substantial upfront investment.
It's something we develop in our Myanmar property pack.
How do vacancy rates differ across areas and property types?
Vacancy rates in Yangon vary significantly based on location and property category.
Premium and central areas maintain low vacancy rates below 10% due to consistent demand from corporate tenants, expats, and affluent locals. These areas benefit from established infrastructure, business proximity, and reputation, creating stable rental markets even during economic uncertainty.
Outer townships experience higher vacancy rates around 12-15%, though this figure has been declining as infrastructure development and urban expansion attract more residents. The gap between central and outer area vacancy rates continues narrowing as transportation links improve.
Commercial and serviced units show vacancy rates of 8-12% in prime business districts, rising to 15% in areas outside core commercial zones. The commercial market faces more volatility due to business cycles and economic conditions affecting corporate demand.
Property condition and pricing strategy significantly impact vacancy rates across all areas. Well-maintained properties priced competitively for their location typically achieve occupancy rates above market averages, while overpriced or poorly maintained units can face extended vacancy periods.
What tenant types dominate Yangon's rental market and how do they affect yield stability?
Yangon's rental market serves diverse tenant segments with varying impact on investment stability.
Expats and multinational companies favor large condos over 100 square meters, penthouses, and landed houses in premium townships like Bahan and Downtown. These tenants typically sign longer leases, pay higher rents, and provide stable income streams, though they represent a smaller market segment sensitive to political and economic conditions.
Local professionals and office workers form the largest tenant group, primarily renting mid-sized apartments and mini condos. This segment offers reliable, moderate yields with lower tenant turnover than transient populations. Their rental capacity grows with Myanmar's economic development, supporting long-term market stability.
Students concentrate in townships like Kamayut, Hlaing, and Sanchaung, typically renting small apartments. While they create high turnover, steady enrollment at local universities ensures consistent demand for affordable rental units in these areas.
Corporate short-term stays represent a growing segment in serviced apartments, often paying premium rates for flexible lease terms. This market segment adds yield potential but requires more active management and creates higher operational complexity.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Myanmar versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How do short-term rental yields compare with long-term leases?
Short-term rentals in Yangon can achieve higher gross yields but require careful analysis of net returns.
Serviced apartments and Airbnb-style properties in central areas achieve gross yields of 8-10%, particularly appealing to business travelers and short-term expat assignments. Premium locations near business districts and international hotels command the highest short-term rates.
However, net yields after accounting for cleaning, administration, higher vacancy periods, and management costs often align closely with long-term rental returns at 7-8%. The operational complexity significantly increases, requiring active management or professional property management services.
Long-term residential leases provide more stable, predictable returns at 6-8% with minimal landlord costs and lower vacancy risk. Most successful long-term rental properties require less hands-on management and generate steady monthly income without the volatility associated with short-term markets.
The choice between short and long-term strategies often depends on investor preference for active versus passive management, risk tolerance, and local market knowledge. Many investors find long-term leases better suited to Yangon's market conditions and regulatory environment.
How have rental yields and property prices changed over recent years?
Yangon's property market has shown resilience with improving yields despite modest price appreciation.
Compared to 2020, condo prices have remained relatively stable with 5-10% increases since 2022, while rental demand has strengthened significantly. This combination has actually improved rental yields by approximately 1% across most property categories, creating better investment conditions than several years ago.
Over the past year, small apartments experienced sharp price increases of 20-30%, while larger units remained flat. However, strong rental demand has maintained or improved yields even for properties that saw price appreciation, demonstrating the market's underlying rental strength.
Satellite townships like North Dagon and Hlaingtharya have experienced dramatic price appreciation exceeding 100% over five years, driven by infrastructure development and urban expansion. Central areas have seen more modest price movements but benefit from stable, strong rental markets.
The overall trend shows rental yields improving due to supply shortages and urban migration, even as property prices have stabilized or grown modestly. This combination creates favorable conditions for new investors entering the market.
What's the outlook for Yangon rental yields over the next decade?
Yangon's rental yield forecast remains optimistic based on supply-demand fundamentals and urbanization trends.
Over the next year, yields are expected to hold steady or rise slightly to 9% due to continued supply shortages and ongoing urban migration to Yangon. Limited new construction and growing rental demand support this positive outlook for 2026.
The five-year forecast suggests stable to moderately rising yields of 7-9%, assuming infrastructure development continues and political stability is maintained. Yangon's position as Myanmar's commercial center and ongoing urbanization should sustain rental demand growth.
Looking ahead ten years, yields will likely moderate gradually to 6-7% as increased supply enters the market and the property market matures. However, these levels would still remain attractive compared to regional peers, assuming economic development continues and regulatory frameworks stabilize.
Key risks include political instability, regulatory changes affecting foreign investment, and potential oversupply if construction activity accelerates rapidly. Conversely, continued infrastructure investment and economic growth could sustain higher yields longer than current projections suggest.
It's something we develop in our Myanmar property pack.
How does Yangon compare with other regional property markets?
Yangon stands out as one of Southeast Asia's highest-yielding residential property markets.
| City | Rental Yield | Price per sqm (City Center) | Market Maturity |
|---|---|---|---|
| Yangon | 7-8% | $1,465 | Emerging |
| Phnom Penh | 6-7% | $1,600-2,200 | Developing |
| Ho Chi Minh City | 5-6% | $2,200-3,000 | Established |
| Bangkok | 4-5% | $3,500-4,500 | Mature |
| Kuala Lumpur | 3-4% | $2,800-3,500 | Mature |
| Jakarta | 5-6% | $2,000-2,800 | Established |
| Manila | 6-7% | $1,800-2,400 | Developing |
Yangon's competitive advantage stems from relatively affordable entry prices combined with strong rental demand, creating yield premiums over more developed markets. The city's position as Myanmar's commercial hub and ongoing urbanization support these attractive returns.
However, investors must weigh higher yields against increased political and regulatory risks compared to more stable markets like Bangkok or Kuala Lumpur. Currency volatility and foreign ownership restrictions also present additional considerations not found in more mature markets.
The comparison highlights Yangon's appeal for yield-focused investors willing to accept emerging market risks, while more conservative investors might prefer the stability and liquidity of established markets despite lower returns.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yangon's rental market offers compelling yields of 6-8% for condos and 5-7% for houses, significantly outperforming regional capitals while providing attractive entry points for property investors.
Success in Yangon's rental market depends on understanding location dynamics, tenant preferences, and total acquisition costs, with cash buyers achieving the best risk-adjusted returns in the current financing environment.