Colombo Land Price Index grows by over 10% YoY

The land price index (LPI) end 2017 for the Colombo District, has recorded a year- on-year growth of 10.4%, the lowest since 2015’s 14.5%, owing to the recent trends in land price movement. The Central Bank of Sri Lanka (CBSL) said in its ‘LPI- Second Half of 2017’ report released yesterday.

According to the CBSL, the Residential sub-index recorded a (YoY) growth of 9.7%, while the Commercial and Industrial sub-indices recoded year- on-year growth of 11.2%, 10.1% respectively.
However, these sub-indices were also the lowest since 2015 and lower than the recorded growth in end June 2017.
LPI End June 2017, recorded a growth 12.6%. The Residential LPI recorded 11.9% while Commercial and Industrial sub-indices recorded YoY growth of 11.6% and 14.6 respectively.

Colombo, Dehiwala, Homagama, Kaduwela and Kesbewa are the five DS divisions considered in the LPI.
End Dec. 2015, Residential index recorded 13.7%, Commercial and Industrial sub-indices recoded year-on-year growth of 16.4% and 13.4% respectively.

Meanwhile, speaking at the PropertyGuru Media roundtable discussion last week JLL Sri Lanka, MD, Steven Mayes said land prices in core areas of Colombo City (Colombo 1, 2 and 3) were likely to peak this year on the verge of Colombo Port City land being released to developers later this year.
Meyers said, “The launch of Port City land sales which is expected later this year, will be a bellwether for the general market in terms of land
prices.”

He added that 270 hectares of new land coming into the market later this year equipped with necessary infrastructure and urban landscaping with clear titles, will be much more attractive to developers and developers will concentrate on that. Therefore, he said the prices of existing brown fields and green fields around Colombo are likely to suffer.