Sri Lanka’s condominium sales increase during third quarter of 2021
The Central Bank of Sri Lanka (CBSL) in its Condominium Property Volume Index has noted that condominium sales transactions during the third quarter of 2021 have seen an increase compared to a year ago as well as the previous quarter.
The Index has reportedly shown that even though the most preferred condominium units were in the single condominium project category and those below Rs. 25 million, a gradual increase could be observed in sales of condominiums priced between Rs. 25 to 50 million.
By the end of the third quarter of 2021, majority of the units (96%) in completed condominium projects have been sold and the CBSL has stated that 58% and 55% of units have been reserved in ongoing single condominium projects and mixed development projects respectively.
Pre-sale deposits, bank loans and equity were the three key funding sources for condominium developments and the proportions of pre-sale deposits have reportedly increased during the third quarter of 2021 compared to the previous quarter.
“The proportions were calculated to get an overall understanding about the funding structure of condominium developments by averaging the percentages of funds received through different funding sources provided by each developer,” CBSL has been quoted as saying.
The Bank has further stated that the majority of condominium buyers were Sri Lankan residents and only a few condominiums were purchased by dual citizens and foreigners while a majority of condominium purchases during the third quarter were for immediate or future living.
CBSL has added that condominium purchases for investment and rent purposes were increased at this low interest rate environment.
Sri Lanka’s development programme and the growing economy has opened up many business/investment opportunities in the country’s house and property sector. The country is also developing as an emerging business destination in the South Asian region supported by the country’s geographical positioning in the Indian Ocean, the many trade agreements as well as concessions enjoyed by the country and the ease of doing business environment. All these have resulted in an expansion of opportunities in Sri Lanka’s house and property sector. Foreign businesses/investors could therefore confidently explore business opportunities in Sri Lanka’s growing house and property sector.
|Article Code :||VBS/AT/06012022/Z_1|