COLOMBO: Sri Lankans purchased 65 % of high-end condominiums that entered the Sri Lankan property market while Sri Lankan expatriates purchased 27 % of these condominiums, the Daily Mirror reported quoting a leading property developer.
Addressing the third annual Sri Lanka Investment and Business Conclave, organised by the Ceylon Chamber Of Commerce last week, Condominium Developers’ Association of Sri Lanka Chairman and Altair Project Sales and Marketing President Pradeep Moraes expressed optimistic views on Sri Lanka’s high-end luxury condominium segment.
He noted that foreign purchases of condominiums only account for a mere 8 % despite the fact that it was foreign developers who had launched many of the large condominium projects in Sri Lanka.
Referring to this in an interview recently with Oxford Business Group, Moraes had said: “The low foreigner count is because the purchase of residential property in Sri Lanka is not linked to residency privileges, unlike several countries in the Caribbean, South-east Asia, and the Middle East, as well as certain Mediterranean countries in the EU. However, this is now being remedied with a proposal to grant residency visas connected to investment.
Moraes said he was confident that the government would implement the budget proposals of five-year residency visas for apartment purchases above US $ 300,000 and 10-year residency visa for apartment purchases above US $ 500,000, which will further ensure the growth of the industry.
According to Moraes, apartment units in Colombo were poised to grow from 1.7 % of the current total housing units in Colombo to 4.5 % units within the next few years, with several new large-scale apartment projects entering the market next year. Out of 562,500 housing units in the Colombo area, only 1.7 % are apartment units.
He pointed out that compared to other major Asian cities such as Bangkok, Dubai, Mumbai, etc. Colombo’s housing units to apartment units ratio is very much lower. He also dismissed speculations that there is a bubble forming in the high-end luxury condominium sector in Colombo.
Speaking of the demand for condominium units, Moraes emphasised that 98-99 % of the current available apartment units were sold out, while the projects under construction have been able to maintain a 49 % pre-sale rate on average. “Buyers are spoilt by choice,” he added, and referred to the fact that the iconic property project, the 404-unit Altair, which is under construction and scheduled to be completed this year, has already pre-sold 69 % of its apartment units.
