CSE’s roadshow in Aussie sponsored by condo builders

Listless apartment sales in Colombo have spurred many condo builders to undertake roadshows to attract the diaspora – especially in the West.

In a fresh bid to entice them, some large builders sponsored the Colombo Stock Exchange (CSE) led roadshow in Australia earlier this week, industry players noted.

The Colombo Port City was the event’s platinum sponsor while One Galle Face by Shangri-La Hotels & Resorts was also a platinum sponsor with the luxury apartment development by Altair was the corporate sponsor. “The apartment sales aren’t as hot as many expected and with many condos being commissioned, builders are finding it difficult to sell at their astronomical prices,” an industry player said.

So when the CSE went on a roadshow to Australia and New Zealand, this was a good opportunity for many apartment builders, he said. The CSE said that the forum in Sydney drew over 150 participants including institutional investors, high net-worth individuals, Sri Lankans living in Sydney and other individuals with a business interest in Sri Lanka.

“The interest in Sri Lanka was evident from the lively interaction the participants had with the Sri Lankan delegation at the question and answer session, with topics ranging from opportunities in the stock market, foreign investor participation in future infrastructure developments, the ease of investing in the Sri Lankan stock market and the future economic potential of Sri Lanka,” the CSE said in a statement.

The demand for apartments has exceeded or matched supply for the past several years amid strong signs of economic growth after the war and a broad shift in the housing market in favour of outright purchase against renting, data shows.

The demand for property kept growing at a healthy rate at the time and the return that was made on investments here was extraordinary, according to many in the business. But now many question investing in property in Sri Lanka amidst the current economic con- ditions.

The real estate economy is showing swift development with many luxurious residential and commercial developments on the agenda in Colombo and suburbs. Colombo’s skyline has seen major transformations in commercial and residential construction projects in the past 10 years, analysts who are hopeful say.

“The country is witnessing a massive boom in the real estate segment, not only investments made by local conglomerates but also foreign hotels and property chains that are eying the industry and it was a wise thing by the CSE to get these firms to sponsor this roadshow,” a share market analyst said.

Analysts say that high end apartments could well take a hit this year, but the mid to lower end ones may not see the cooling affect that much. “That’s because those buying the last two categories want to be either closer to Colombo or in the suburbs and they can afford these apartments,” another analyst said.