ECONOMYNEXT – Land prices in Sri Lanka’s Colombo district, where the capital is, rose over 16 percent in the first half of 2018 from a year ago, led by commercial properties and appear to be picking up again.
The Central Bank said its Land Price Index (LPI), compiled biannually covering the Colombo District, rose 16.3 per cent in the half-year ending June 2018, faster than in the previous six months.
The rebased Land Price Index for the Colombo District reached 116.3 during the first half of 2018, recording an increase of 16.3 percent compared to the first half of 2017, a statement said.
“All sub-indices of LPI, namely Residential LPI, Commercial LPI and Industrial LPI contributed to this increase.”
The highest increase was in the Commercial LIP, which rose 16.8 percent, followed by residential land which rose 16.5 percent and industrial land which rose 15.8 percent.
The central bank said that with the increasing importance of monitoring land prices due to recent developments in the real estate sector, the geographical coverage of LPI was expanded to 82 centers covering all DS divisions in the Colombo District.
The bank also revised its base period from 1998 to first half of 2017 to accommodate this expansion.
Residential land prices had risen 9.7 percent, Commercial 11.2 percent and Industrial land 10.1 percent in the half year to December 2017.
The data up to December 2017 showed land price inflation slowing in the previous three six-month periods with the LPI itself having risen 12.8 percent up to end-December 2016, and slowing to 12.6 percent in the six months to June 2017.
(COLOMBO, 25 Octber, 2018)