The Investor Sentiment - Equity and investments forum for Sri Lankans



Join the forum, it's quick and easy

The Investor Sentiment - Equity and investments forum for Sri Lankans

The Investor Sentiment - Equity and investments forum for Sri Lankans

Would you like to react to this message? Create an account in a few clicks or log in to continue.
The Investor Sentiment - Equity and investments forum for Sri Lankans

The Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSEThe Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSE

Please send an email to contact.lankaninvestor@gmail.com if you face any technical difficulties when posting

Latest topics

» CIFC Dumps to Expand Your Possibilities to Pass Your Exam
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyFri Jul 19, 2024 10:30 am by faithhharris

» CCS.N0000 ( Ceylon Cold Stores)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Mar 20, 2024 11:31 am by Hawk Eye

» Sri Lanka plans to allow tourists from August, no mandatory quarantine
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Sep 13, 2023 12:16 pm by lauryfriese

» When Will It Be Safe To Invest In The Stock Market Again?
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Apr 19, 2023 6:41 am by කිත්සිරි ද සිල්වා

» Dividend Announcements
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Apr 12, 2023 5:41 pm by කිත්සිරි ද සිල්වා

» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyThu Apr 06, 2023 3:18 pm by කිත්සිරි ද සිල්වා

» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්‍රතික්ෂේප කළ ගණිතඥයා
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySun Apr 02, 2023 7:28 am by කිත්සිරි ද සිල්වා

» SEYB.N0000 (Seylan Bank PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyThu Mar 30, 2023 9:25 am by yellow knife

» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyThu Mar 30, 2023 9:25 am by HaeroMaero

» The Korean Way !
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Mar 29, 2023 7:09 am by කිත්සිරි ද සිල්වා

» In the Meantime Within Our Shores!
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyMon Mar 27, 2023 5:51 pm by කිත්සිරි ද සිල්වා

» What is Known as Dementia?
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyFri Mar 24, 2023 10:09 am by කිත්සිරි ද සිල්වා

» SRI LANKA TELECOM PLC (SLTL.N0000)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyMon Mar 20, 2023 5:18 pm by කිත්සිරි ද සිල්වා

» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyMon Mar 20, 2023 5:10 pm by කිත්සිරි ද සිල්වා

» Equinox ( වසන්ත විෂුවය ) !
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyMon Mar 20, 2023 4:28 pm by කිත්සිරි ද සිල්වා

» COMB.N0000 (Commercial Bank of Ceylon PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySun Mar 19, 2023 4:11 pm by කිත්සිරි ද සිල්වා

» REXP.N0000 (Richard Pieris Exports PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySun Mar 19, 2023 4:02 pm by කිත්සිරි ද සිල්වා

» RICH.N0000 (Richard Pieris and Company PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySun Mar 19, 2023 3:53 pm by කිත්සිරි ද සිල්වා

» Do You Have Computer Vision Syndrome?
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySat Mar 18, 2023 7:36 am by කිත්සිරි ද සිල්වා

» LAXAPANA BATTERIES PLC (LITE.N0000)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyThu Mar 16, 2023 11:23 am by කිත්සිරි ද සිල්වා

» What a Bank Run ?
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Mar 15, 2023 5:33 pm by කිත්සිරි ද සිල්වා

» 104 Technical trading experiments by HUNTER
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Mar 15, 2023 4:27 pm by katesmith1304

» GLAS.N0000 (Piramal Glass Ceylon PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Mar 15, 2023 7:45 am by කිත්සිරි ද සිල්වා

» Cboe Volatility Index
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyTue Mar 14, 2023 5:32 pm by කිත්සිරි ද සිල්වා

» AHPL.N0000
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySun Mar 12, 2023 4:46 pm by කිත්සිරි ද සිල්වා

» TJL.N0000 (Tee Jey Lanka PLC.)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySun Mar 12, 2023 4:43 pm by කිත්සිරි ද සිල්වා

» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySun Mar 12, 2023 4:41 pm by කිත්සිරි ද සිල්වා

» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyFri Mar 10, 2023 4:43 pm by yellow knife

» Bitcoin and Cryptocurrency
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyFri Mar 10, 2023 1:47 pm by කිත්සිරි ද සිල්වා

» CSD.N0000 (Seylan Developments PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyFri Mar 10, 2023 10:38 am by yellow knife

» PLC.N0000 (People's Leasing and Finance PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyThu Mar 09, 2023 8:02 am by කිත්සිරි ද සිල්වා

» Bakery Products ?
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Mar 08, 2023 5:30 pm by කිත්සිරි ද සිල්වා

» NTB.N0000 (Nations Trust Bank PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySun Mar 05, 2023 7:24 am by කිත්සිරි ද සිල්වා

» Going South
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySat Mar 04, 2023 10:47 am by කිත්සිරි ද සිල්වා

» When Seagulls Follow the Trawler
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyThu Mar 02, 2023 10:22 am by කිත්සිරි ද සිල්වා

» Re-activating
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySat Feb 25, 2023 5:12 pm by කිත්සිරි ද සිල්වා

» අපි තමයි හොඳටම කරේ !
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyTue Feb 14, 2023 3:54 pm by ruwan326

» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyTue Jan 03, 2023 6:43 pm by ruwan326

» SAMP.N0000 (Sampath Bank PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Nov 30, 2022 8:24 am by කිත්සිරි ද සිල්වා

» APLA.N0000 (ACL Plastics PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyFri Nov 18, 2022 7:49 am by කිත්සිරි ද සිල්වා

» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyWed Nov 16, 2022 9:28 pm by කිත්සිරි ද සිල්වා

» Banks, Finance & Insurance Sector Chart
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyTue Nov 15, 2022 5:26 pm by කිත්සිරි ද සිල්වා

» VPEL.N0000 (Vallibel Power Erathna PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySun Nov 13, 2022 12:15 pm by කිත්සිරි ද සිල්වා

» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyMon Nov 07, 2022 6:36 pm by කිත්සිරි ද සිල්වා

» WATA - Watawala
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySat Nov 05, 2022 8:44 am by කිත්සිරි ද සිල්වා

» KFP.N0000(Keels Food Products PLC)
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptySat Nov 05, 2022 8:42 am by කිත්සිරි ද සිල්වා

» Capital Trust Broker in difficulty?
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyFri Oct 21, 2022 5:25 pm by කිත්සිරි ද සිල්වා

» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyThu Oct 20, 2022 10:13 am by කිත්සිරි ද සිල්වා

» What Industry Would You Choose to Focus?
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyTue Oct 11, 2022 6:39 pm by කිත්සිරි ද සිල්වා

» Should I Stick Around, or Should I Follow Others' Lead?
Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  EmptyTue Oct 11, 2022 9:07 am by කිත්සිරි ද සිල්වා

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker


+3
slstock
puliyanam
xmart
7 posters

    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    xmart
    xmart
    Top contributor
    Top contributor


    Posts : 732
    Join date : 2015-01-17

    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  Empty Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    Post by xmart Sat Nov 03, 2018 6:09 pm

    I have come across many real estates developments in all scale in Sri Lanka. Mainly, in Colombo. High-end apartment complex like Altair, AVIC Astoria, and Havelock City to UDA low-income housing complex in Maligawatta, Henamulla, Male Street etc. further, there are private investors who pull money from the equity market, FDs and other businesses in order to build the apartment complex for the purpose of short-term renting or permanent sale. further that, City center, Waterfront and Havelock city can be classified as mixed developments.

    there are a lot of promises with the port city and related development will there be increased demand and resultantly increased capital appreciation? or this real estate boom is just another bubble where most of the retail investors end up with lifetime loans?
    puliyanam
    puliyanam
    Top contributor
    Top contributor


    Posts : 482
    Join date : 2014-02-28

    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  Empty Re: Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    Post by puliyanam Mon Nov 05, 2018 10:37 am

    My views (not research) are as follows:

    The supply of new premises in residential market has increased tremendously over last decade or so, especially with the increase in the apartment supply in the Colombo district. It has caught up in some other district too, though not as severely.

    THe supply of new premises in commercial property market is now on the increase with city center and the like with the planned port city etc shifting gears on the definition of "up-market" property.

    According to CBSL, the prices of land increase by 16% or so from 2017 June to 2018 June in Colombo district.

    So what is happening is supply is increasing in terms of units, land prices are increasing and a huge construction effort is onging, predominantly in the colombo district. But other districts are gradually getting there.

    So what? Occupancy (Yield and shift)

    Well this trend could get derailed as follows

    People who bought these for investment purposes or developers who developed without fully pre-selling are already witnessing some issues. THis could translated to lower yields going forward. Or know on impact on tourism sector. THat is what some times reffered to as bubble by CBSL (based on NPA's reported by banks by sector perhaps)

    Shift to high end flashy properties from the current property which are old could start a price war, in commercial sector leading to me-too properties struggling with lower economic growth witnessed in many sectors.

    Will it happen? When?
    Honestly i dont know Very Happy. what we believe as a market is what matters. Different segments have different problems at present.

    Residential
    Low end: Low occupancy or shift doesnt seem an issue so ok in my view
    Mid market: definitely an issue
    High end: Issue is visible
    Very high end (>450 USD/Sq.feet): hmm not sure. May be an issue.

    Commercial: Definitely an issue

    Will i invest in the sector?
    Personally im a land person not appartment person. Land stock cannot be increased, not by much even if you take reclamation into account . And fixed supplies are good for prices, at least in the long run!


    slstock
    slstock
    Veteran
    Veteran


    Posts : 6216
    Join date : 2014-06-12

    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  Empty Re: Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    Post by slstock Mon Nov 05, 2018 11:25 am

    Hmm. I see someone is back (puliyanam ) .Good to see.

    I want to add something on Foriegners moving to SL or buying/renting  property which may not be apparent or discussed by media.

    Actually Sri Lanka is getting quite unattractive for foreigner to buy/rent property and settle down   ( even to visit but that is another matter)

    Here are some reasons

    1) Unless in rural areas , Condo / Property buy/rent prices in main cities ( specially in Colombo / Kandy ) is actually quite expensive.  Same can be had in Thailand ( and even Vietnam) for A fraction  where infrastructure facilities, health case, cost of living is much better.  

    2) Most food items foreigners  are used to in their homelands are not freely available in SL. If they can be found ,   they are amazingly expensive due to high import taxes.  

    Look how expensive Cheese is. ( Seriously I don't think cheese is a luxury. It is not Caviar!)  I heard even a small bag of M&M candy is over Rs 1000 in Sri Lanka now.  
    It usually less than half price elsewhere in the world. How much are Grapes and Oranges ? Are these luxuries ? ( Are Grapes or eating Oranges ( Orange Orange)  grown in SL enough  to substitute with local products? )

    3) Red tape and other tape is absurd in Sri Lanka.


    Ex 1 : Some years ago , I knew an educated lady ( counselor) from England trying to settle down in SL. She once told me she was going through hell to get her resident visa renewed due to red tape in SL.  Look she was rich, educated , helping local people and owned property here,  yet SL policies were so complex she might have had to sell everything  and return to UK.

    We are not UK or USA to get rid of such people. We attract few to start with and then ... ?

    Ex 2 :  I was once at the Local Customs office to clear some books.  There was an Australian who was sitting there for ever and quite upset with something. Finally he left very unhappy.

    Later I quietly talked to the Custom officer to find out what happened.   The Aussie had got shipped 3 bottles of tonic ( for one of his medical  needs) to SL.

    Customs wanted to Charge him Rs 15000 to clear it.  
    Actually the bottles costed only like Rs 5000 total ( tax was 2-3 times more)

    The Sudda was honest and had asked to include the bill/receipt in the package. Customs officer was telling me  if he didn't have the bill in the package they could have put some low amount and let him go.

    But now they have to tax him like crazy due to the receipt.  I politely told him  I felt not right about our system hassling the Sudda for over a small matter like such. Customs officer told me he felt the same but sadly he can't do anything and felt sorry too!  


    In summary, I really think Sri Lankan Apartments/Condos are over prices in Colombo and main cities. Add to that with the hassle and lack of facilities  in SL,  am not surprised we will be in a property bubble if we are already not ( specially wrt to Suddas demand vs supply )
    xmart
    xmart
    Top contributor
    Top contributor


    Posts : 732
    Join date : 2015-01-17

    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  Empty Re: Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    Post by xmart Mon Nov 05, 2018 2:30 pm

    Thanks both puliyanam and SLS for wonderful insights.

    Yes we agree that Condo market is overprices and land prices are skyrocketing. but with the rate of emerging supplies and demand, specially with prominent developments in Colombo i'm still doubtful that whether we had reached the peak or just witnessing the first spark of new trends.

    both of your insights opened a path to think more. thanks!
    PANTOMATH
    PANTOMATH


    Posts : 231
    Join date : 2018-10-15

    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  Empty Re: Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    Post by PANTOMATH Mon Nov 05, 2018 9:44 pm

    Very good discussion Puliyanam and SLS,thank you
    +Rep for both of you
    avatar
    serene
    Top contributor
    Top contributor


    Posts : 4850
    Join date : 2014-02-26

    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  Empty Re: Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    Post by serene Tue Nov 06, 2018 7:36 am

    Thanks Good discussion.
    Bubble would be get inflated or deflated in near future when winner comes out from this ugly political tussle.
    xmart
    xmart
    Top contributor
    Top contributor


    Posts : 732
    Join date : 2015-01-17

    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  Empty Re: Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    Post by xmart Sun Nov 18, 2018 12:00 am

    The land Price index in Colombo was up 16% in the first half of 2018, shunning the expectation of cooling off property prices. rising of commercial land price in 1H 2018 is 16.8% while that of residential land price in 1H 2018 is 15.8%.

    [You must be registered and logged in to see this image.]

    further to that, real estate market about gets a boost with Havelock city phase IV completion, Altair, Avic, Shangri La Residencies, Water Front and Colombo city center inflow and demand not to mention the biggest boost from port city, which will be ready for commercial construction in 2020, with 90% of the $1.4 billion reclamation work completed by August 2018.

    The developer, China Harbour Engineering Company says 178Ha with a total gross floor area of 5.6 million square miles will be made available in two phases for real estate development estimated to attract $13 billion in foreign direct investment over the next two decades. Phase I, which includes an international financial centre, beachfront and marina, has seen investors from South Asia, the Middle East, China and Japan expressing interest in developing real estate, the developer says.

    • 58Ha Saleable land available to investors under the first phase for hotels, malls, offices and apartments


    • 2.6 mnsquare miles – Estimated floor area under phase one


    • $4 bnEstimated private investments for phase one


    Courtesy from echelon & Central Bank
    ruwan326
    ruwan326


    Posts : 1744
    Join date : 2016-09-29
    Age : 46
    Location : Horana

    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  Empty Re: Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    Post by ruwan326 Sun Jul 21, 2019 6:43 am

    ‘Sri Lanka’s real estate regains momentum’

    21 July, 2019

    Following recent marketing efforts by industry leaders as well as by the Sri Lanka Tourism Board Authority (SLTBA), Sri Lanka’s many affected industries, including tourism, real estate and construction have begun to see a slow regain in momentum.

    Following on from the recent terror attacks, several industries, alongside travel and tourism, namely real estate and construction, aviation, and several more were severely affected with a notable decline in enquiries and sales, locally and internationally.

    Director Sales and Marketing, Capitol TwinPeaks, Rohith Dissanayake said, “Following recent incidents, Sri Lanka has faced a considerable decline in interest and sales not just in real estate, but within several industries. However, with the international community, local industry leaders and Sri Lanka authorities banding together to ensure safety and continuity of business, we have begun to see the start of Sri Lanka’s rise again”. Properties particularly in the Colombo 1 and 2 area are expected to yield higher investment returns.

    [You must be registered and logged in to see this link.]
    The Invisible
    The Invisible


    Posts : 3116
    Join date : 2016-11-28
    Age : 45

    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  Empty Re: Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    Post by The Invisible Sun Jul 21, 2019 11:50 am

    Thanks Ruwan

    Sponsored content


    Real Estate Market in Sri Lanka- A booming Industry or a Bubble?  Empty Re: Real Estate Market in Sri Lanka- A booming Industry or a Bubble?

    Post by Sponsored content


      Current date/time is Sun Nov 10, 2024 5:48 pm