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Condo sales rose in Q1 2021, units below Rs.25mn most sold

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Low interest rates were a ‘shot in the arm’ for the industry

by Sanath Nanayakkare

A recent report published by the Statistics Department of the Central Bank of Sri Lanka shows Sri Lanka’s Condominium Market recorded a significant increase in sales transactions in Q1, 2021 compared to the previous quarter.

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, the Condominium Property Volume Index shows.

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 per cent of the units have been sold. Meanwhile, in the ongoing condominium projects, 50 per cent and 58 per cent of units have been reserved so far in single condominium projects and mixed development projects, respectively.

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.

The majority of condominium buyers are Sri Lankan residents, and the residence status of buyers remains largely unchanged from historic

data. In terms of the purpose of purchasing, the majority of purchases remain to be for immediate living, while a noteworthy increase could be observed in condominium purchases for investments in Q1, 2021.

The survey has also calculated the averages 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.

Even though the prime source of funding used for purchasing condominium properties has been own funds, the percentage of buyers who have purchased condominiums through bank loans has increased during Q1, 2021.

Statistics Department of the Central Bank of Sri Lanka launched the Condominium Market Survey during the 3rd quarter of 2017 with a view to obtaining market information, considering the importance of this sector to the real estate industry and thereby to the overall economy. The survey is carried out on a quarterly basis and the respondents consist of the members of the Condominium Developers Association of Sri Lanka and other key market players.

Meanwhile, Roshan Madawala, Founder of Research Intelligence Unit (RIU) speaking at a Property Guru webinar said last week that developers of residential condos say that their business is good and steady. He went on to say that the reason for this is the government’s bold decision to slash interest rates which has provided a ‘shot in the arm’ for residential developers.



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Altair on track

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Altair - the architectural marvel

`Altair’, the iconic building in Colombo – Sri Lanka is designed by Celebrity Architect Moshe Safdie based in Boston, USA. Moshe Safdie has designed many famous iconic structures including the famous Marina Bay Sands with Sky Garden in Singapore. `Altair’ is in the league of iconic buildings of the world, such as Burj Khalifa, Petronas Tower, Marina Bay Sands, Shanghai Tower, The Parc 1 Tower in Seoul – South Korea, ICC Building & Bank of China Tower in Hong Kong to name a few. 

The project `Altair’ was launched by South City Group in Colombo in the year 2013. Due to construction related complications, force majeure reasons and an unfortunate ownership related dispute, the project has been delayed. However, South City Group has expressed with much pleasure that the Group is back in the helm of the real estate project with 100% control. Most importantly, the project is progressing well and will be ready for handing over in the next few months.

The spokesperson of South City stated that that they are getting utmost support and cooperation from the Government of Sri Lanka for completing the project. President Gotabaya Rajapaksa has appointed Mr. Sirinimal Perera, the Special Authorised Officer to steer the project towards its successful completion. South City group is also receiving steadfast backing from the esteemed customers and the project is on track to deliver what it promised since inception. The rich experience of South City Management with a huge knowledge bank will be able to soon create another landmark in Sri Lanka which will be one of the top landmarks in the world.

Altair’ is an architectural marvel and consists of two vertical tower blocks, one straight tower and another stepped tower which is in slope and leaning to the straight tower. The project is in the prime area of Colombo facing Beira Lake as well as the Indian Ocean. The finishes of the project are on high calibre, with Italian marble, wooden flooring, central air-conditioning, hot water supply and super luxurious sanitary fixtures. Additionally, there is a Resident Club on the fifth level with a garden around it and on 63rd level with the swimming pool and other recreational facilities. 

The apartments have been booked by the Crème de la crème of Sri Lanka’s social fabric, HNI and a noteworthy number of overseas residents from the Sri Lankan diaspora. Notably, ‘Altair’ a is the biggest FDI investment in Colombo for real estate to date. Altair is a symbol of a successful foreign investment and a show-piece for the Sri Lankan Government to attract further investment in Sri Lanka.

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A cheering campaign to support Team Sri Lanka at TOKYO 2020

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Chethika Rajapaksha, Marketing Manager, ICL Brands, Susanthika Jayasinghe, Dushan Vas, Niloo Jayatilake, Chairperson – Women's Committee, NOCSL, Fazil Hussain, Member, Ex. Committee, NOCSL.

ICL Brands’ Eva lived up to its’ promise of ‘Leading with Confidence’ by partnering with the National Olympic Committee of Sri Lanka (NOCSL) as the Official Cheering Partner for Team Sri Lanka at TOKYO 2020, Olympics. The brand initiated a massive communication campaign, centered around the ‘Official Cheering Song’ to drive Sri Lankans to rally around Team Sri Lanka and support the 9 athletes that bear the pride of the nation at TOKYO 2020.

The launch of the ‘Official Cheering Song’ took place at the Capital Maharaja Group head office with the participation of Sri Lanka’s very own Olympic Silver Medalist, Susanthika Jaysinghe, NOCSL Women’s Committee Chairperson, Niloo Jayatilake, NOCSL’s Executive Committee Board Member, Fazil Hussain and Chethika Rajapaksha, Marketing Manager for ICL Brands. Amidst the other guests who graced the occasion were Sunil Kanojia, Group CEO – CMG, Shanthi Bhagirathan, Group Director – ICL Brands, Rakesh Khosla,CEO – ICL Brands and others.

The event was live streamed via multiple social media platforms simultaneously, reaching out to a wide audience and kicking off the cheering campaign officially. Eva’s campaign to cheer for Team Sri Lanka will continue throughout the period of TOKYO 2020 Olympics on multiple media platforms.

Susanthika Jayasinghe who graced the occasion as chief guest praised the initiative ”’I am extremely happy to see the brands of highest caliber such as Eva coming forward to support Sri Lankan athletes at Olympics. As an athlete who has represented and won for Sri Lanka on the Olympic stage, I know how much this means to our athletes in Tokyo right now”.

 

 

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Sri Lanka Development Bonds auction held during July 20-27, 2021

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Date of settlement July 30, 2021

An issuance window for SLDBs will be opened with the announcement of the auction results until close of business of day prior to settlement (i.e., preferably by 3.00 pm on 29.07.2021) at the Weighted Average Fixed Rates determined for respective maturities at the auction, up to the limit specified for possible upsizing, at first come first served basis. Applications for subscription through the issuance window are to be forwarded to ‘fopdd@cbsl.lk’ within the stipulated time period.

Public Debt Department

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