Sri Lanka sees significant increase in sales of condominium properties despite pandemic
The Central Bank of Sri Lanka (CBSL) has reportedly revealed that condominium property has seen a significant increase in sales transactions in the country despite the Covid 19 pandemic in the first quarter of 2021 compared to the previous quarter
The Central Bank has revealed these details citing a recent survey and specialised index compiled, the Daily FT has reported.
The Bank has reportedly stated that as per the Condominium Property Volume Index, the prevailing low-interest environment, as well as the increased supply of comparatively affordable condominium projects beyond the city limits of Colombo have led to the increased number of transactions during the period.
This market analysis is based on the Condominium Market Survey conducted by the CBSL and 23 condominium property developers participated in this survey round, the Daily FT news report stated, adding that the Condominium Property Volume Index is compiled to capture the variations in market activities by way of number of sales transactions reported for the reference period. The base period is Q3 2017 = 100.
CBSL has stated that the most preferred condominium units remain to be in the single condominium project category and below Rs. 25 million.
With respect to the sales status in completed condominium projects as at the end of Q1 2021, 92% of the units have been sold.
In the ongoing condominium projects, 50% and 58% of units have been reserved so far in single condominium projects and mixed development projects, respectively.
CBSL has further stated that funding requirements of developers have been predominantly met through pre-sale deposits, bank loans and equity in similar proportions, by the end of Q1 2021.
“These averages were calculated to get an overall understanding about the funding structure of condominium developments using the percentages of funds received through different funding sources provided by each developer,” CBSL has reportedly added.
The Bank has noted that the majority of condominium buyers are Sri Lankan residents, and the residence status of buyers remains largely unchanged from historic data.
OSL take:
Sri Lanka’s house and property sectors have shown a positive growth amidst the Covid 19 pandemic. The country’s economy has shown great resilience through the years and is once again on the path to recovery after facing the impact of the global Covid 19 pandemic. The country is also emerging as a business destination in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. Real estate value in Sri Lanka are also on the rise in line with the country’s ongoing development programme. All this has resulted in the expansion of business/investment opportunities Sri Lanka’s house and property sectors.
| Article Code : | VBS/AT/02072021/Z_2 |