Yoma Land Shifting Focus To Mass Market
Yoma Strategic Holdings and First Myanmar Investment, after seeing the weak sales in the luxury market, have decided to shift their focus to the ‘mass market’, moving from high-end housing and service apartment in Myanmar, to lower-priced residential. This move was marked by a company rebranding, as the group dubs itself Yoma Land.
In Myanmar – Yangon, in particular, any purchase in real estate has to be made with cash upfront which, when combined with the 13% interest rate, seven-year repayment periods, large deposits needed for mortgages, and high land prices, resulted in a slow market, with people unable to buy homes.
The Myanmar national parliament, the Pyidaungsu Hluttaw, attempted to address the issue with a K189 billion ($142 million) project, which would create about 12,000 affordable houses before the 2020 elections, which was funded by a loan from the Japan International Cooperation Agency. Government estimates, however, note that Myanmar will need at least 4.8 million units, 1 million in Yangon alone, over the next 20 years.
Cyrus Pun, managing director of Yoma Land, saw this need as an opportunity, and decided to capitalize on it. Which is why, on June 26, 2018, he launched the new Yoma Land brand, composed of Singapore-listed Yoma Strategic Holdings and the locally-listed First Myanmar Investment, both owned by the Pun family. Its current projects are aimed at more high-end customers, with luxury shopping centres, hotels and service apartment in Myanmar, with one project, Peninsula Residences, having a minimum unit price of USD1.2 million.
Yoma Land, however, will be aimed towards the mass market. Pun refused to divulge further information on the move, but he did divulge that they would be located in Yangon. More information on the rebranding is expected within the next few months.
Pun says that Yoma Land will be aimed at people who don’t have huge savings, and family wealth, people who have decent jobs with stable salaries, but are currently unable to buy homes. Currently, the group is looking to do research on their demographic, with surveys, focus groups, as well as consultations to see what their customers want.
By listening to the customers, Pun believes that Yoma Land can set itself apart with customer-focused products that are made efficiently, allowing the company to both satisfy customers and keep their costs down.