Land value in Colombo district up by 13.6%
View(s):Land value in the Colombo district has increased by 13.6 per cent on average, according to the biannual Land Price Index compiled by Central Bank.
The Bank compiles and analyses several indicators, in order to monitor the developments in the real estate sector. Accordingly, the Land Price Index (LPI) is compiled biannually covering the Colombo district since 1998.
In view of the diverse nature of the land use and to maintain homogeneity, three indices for residential, commercial and industrial lands are computed separately. The overall LPI is computed by taking the average of these three sub-indices.
The LPI for Colombo district reached 132.2 during the first half of 2019, recording an increase of 13.6 per cent compared to the first half of 2018.
The three sub-indices of LPI, namely Residential, Commercial and Industrial have contributed to this increase.
Industrial LPI recorded the highest year-on-year increase of 14.9 per cent while the Commercial LPI and Residential LPI increased by 13.2 per cent and 12.8 per cent, respectively. Meanwhile, the LPI increased by 5.1 per cent from 2nd half of 2018 to 1st half of 2019.
In the compilation process of LPI, the Bank uses the land price data collected by the Valuation Department of Sri Lanka covering around 50 centres of five Divisional Secretariat (DS) divisions in the Colombo district.
Colombo, Dehiwala, Homagama, Kaduwela and Kesbewa are the five DS divisions considered in the LPI.
Demand for land in Thalahena, Gothatuwa and Kolonnawa is rising significantly, resulting in the highest percentage increases in land prices in Greater Colombo, according to a recently concluded study.
Thalahena topped the list, recording a year-on-year percentage increase of 64 per cent.
Ragama, Gothatuwa and Kolonnawa continue to be popular with land prices recording a percentage increase of between 35-55 per cent.
The percentage increases are in line with the increases noted in the asking prices of land. In Thalawathugoda and Thalahena, the average price per perch is between Rs. 1.7-2 million.
While land in Kolonnawa and Wellampitiya both fall within the range of 700,000 to Rs. 1 million, both have displayed a remarkable increase in land prices over the last year.