No decline in demand for land
Anjana Samarasinghe
Despite high interest rates and current economic conditions the
demand for land in Sri Lanka has not declined.
|
Familiar sight: Fragmentation of land in Colombo and suburbs. |
Speaking to Daily News Business a representative of Tharanga Land
Sales said there is a no decline in the land prices and demand. Prices
of the land has increased by 50 per cent.
"We are doing land sales in the Piliyandala area. There is a shortage
of sufficient land with necessary infrastructure and clear deeds. There
is a demand but no sufficient lands to cater to the demand. Most of our
clients have nearly Rs. 30,000 average monthly income and they depend on
bank loans when purchasing lands," he said.
Sales and Marketing Manager of Ceylinco Land Exchange S. Bastian said
there is no decline in the prices of land. Prices are stagnated and
moving slowly. The high interest rate and other economic conditions
impact on the purchasing power of the clients.
Project Coordinator of Bhoomi.lk Shan Kumarage said there is no
decline in the prices of lands. However current economic conditions have
not had a bad impact on land purchasing in the Western Province. Out of
Colombo, the demand for land is a little bit low. There is a trend where
Sri Lankan expats are purchasing properties in Sri Lanka.
An official from Prime Lands said there is no decline in the prices
of land and no decline in the demand as well.
Attorney S.M.S. Jayawardena who deals with land sales in the country
said there is a high demand for land in the Colombo district specially
in Homagama and Piliyandala for residential purposes.
"Clients from the up market still have high purchasing power. But the
middle-class segment is affected by the high interest rates and their
income levels."
"Most of the middle-class clients depend on bank loans to purchase
lands. Their financing capacity has been limited due to high interest
rates. Today, people are moving to Colombo and the demand for land in
outstations is at a low level," he said. Chief Valuer of the Valuation
Department P.W. Senaratne said in the real estate business land prices
never fall.
"When inflation rates peak high, land prices too increase. Today a
perch of land in Pettah is over Rs. 10 million. There is a high demand
for agricultural lands in outstations", he said. |
