Sri Lanka prime property prices seen peaking

ECONOMYNEXT – Land prices in the central business district of the Sri Lankan capital Colombo appear to be peaking with future trends likely dependent on the launch of the Chinese-funded and built ‘Port City’ reclamation project, an official said.

“Land prices have risen sharply over the last five years,” said Steve Mayes, Managing Director, Jones Lang LaSalle (JLL) Sri Lanka, a property consultancy.

“In the Colombo 1, 2 and 3 (wards), which we call the Central Business District, there are indications land prices are peaking now,” he told a news conference held to announce Sri Lanka’s first PropertyGuru, Asia Property Awards, to be held in July 2018.

“The ‘Port City’ project launch later this year will be a bellwether of the market in terms of land prices.”

The US$1.4 billion dollar reclamation and infrastructure project, funded by a Chinese state-owned firm, will reclaim 269 hectares off the Colombo port.

The work is being done by CHEC Port City Colombo (Pvt) Ltd., a subsidiary of China Harbour Engineering Company, which is part of China Communication Construction Company Limited (CCCC) group.

The first high-rise buildings are expected to start on 20 hectares of reclaimed land in June.

CHEC Port City Colombo is targeting foreign investors including from the West, India and the Middle East, apart from China.

Mayes said the PropertyGuru, Asia Property Awards will showcase Sri Lanka’s brightest real estate talent and most outstanding property developments, across all asset classes, to a global audience..

The awards are meant to highlighting the growth prospects and potential that the sector offers and Sri Lanka’s emerging status as a destination for institutional capital and private investment.