Condominium sales are rising to new heights

Condominium sales transactions during the third quarter of 2021 have increased compared to a year ago as well as the previous quarter according to the industry index compiled by the central bank.

Although the most preferred condominium units were in the single condominium project category and those under Rs. 25 million, a gradual increase in the sale of condominiums at a price of between Rs. 25 to 50 million. according to the Condominium Volume Index.

At the end of 3. In the quarter of 2021, the majority of the units (96%) in completed condominium projects have been sold. CBSL said in ongoing condominium projects that 58% and 55% of the units have been reserved in individual condominium projects and mixed-use development projects, respectively.

Pre-sale deposits, bank loans and equity were the three main sources of financing for the development of condominiums. It could be observed that the share of pre-sale deposits has increased during the 3rd quarter of 2021 compared to the previous quarter.

“The proportions were calculated to gain an overall understanding of the financing structure of condominium buildings by taking an average of the percentages of funds received through different funding sources provided by each developer,” CBSL said.

It said the majority of condominium buyers were Sri Lankan residents and only a few condominiums were bought by dual nationals and foreigners. The majority of purchases of owner-occupied flats during the third quarter of 2021 were for immediate or future housing.

CBSL also said that the purchase of condominiums for investment and rental purposes was increased by this low interest rate environment. The primary source of financing used to purchase owner-occupied flats was still the buyers’ own funds, while on average 28% of the buyers have obtained bank loans during the third quarter of 2021.

This market analysis is based on the Condominium Market Survey conducted by the Central Bank of Sri Lanka for Q3 2021 and 24 condominium developers participated in this round of research.

The Condominium Property Volume Index has been prepared to capture the variations in market activities in terms of the number of sales transactions reported for the reference period. (Base period: 3rd quarter, 2017 = 100)

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