Land scarcity, increasing land prices, and high population density are all decisive factors arguing for condominiums as the solution to Colombo’s growing housing problem said Nayana Mawilmada, Sector Head of John Keells Properties at the Future of Condominium Living in Sri Lanka seminar in Colombo recently.
Organized by the Chamber of Construction Industry in Sri Lanka, the conference was held at the Sri Lanka Foundation Institute brought together industry experts and professionals to discuss the current shift in the urban housing market.
He indicated that there has been a clear migration towards the suburbs as a result of the thinly spread developments across Colombo. With approximately 90% of Colombo residents currently living in single-family detached housing, and only 9% of the city’s developments being over four-stories, the middle-class has progressively been priced out of their own city.
The current dynamic as it stands has led to urban land prices sky-rocketing, with housing prices alone -as a result of consistently rising construction costs- having doubled in just the last decade. Mawilmada stressed in particular on the country’s poorly developed housing finance market, as a major cog in the development machinery.
The society-urban ills that follow include hours -that accumulate into nearly a decade of your life- spent in traffic, parking spaces taking up nearly 40% of both residential or commercial developments, and children residing in these land-intensive places left with no space to play.
As the dilemma became increasingly obvious, the solution became even more glaringly apparent. Rationally developed condominium style housing is the only sustainable way forward for the expansion of housing in Sri Lanka.
Archt. Philip Weeraratne, Partner at PWA Architects, used the platform to steer the conversation around new trends in condominium developments, reflecting on the evolution of housing in Colombo and how social acceptance of multi-family housing is growing.
Simon Tham, Asst. General Manager of CHEC Port City Colombo (Pvt) Ltd., confirmed this, insisting that projects such as the Port City will have a significant socio-economic impact on the country, and the region as a whole.
Why then, the question was asked, are developers still favoring the high-end high-income bracket over affordable middle-income housing developments in the city, especially in light of all the facts and projections? The panelists together were able to narrow down on two major factors: high construction costs -one of the highest in the region as a result of high taxation- and a tedious approval process with unaligned building regulations.
Eng. Rohana Wannigama, Director, Capitol Developers Ltd. highlighted the multitude of challenges property developers face in the market and the need for clear and strong policy support from the government to enable growth of the industry, Tissa Perera from the Condominium Management Authority delved into the role of regulatory bodies in the development of these housing projects. The private sector needs to be consciously stimulated to fill this gap for middle income housing.
“If the government resists the temptation to be the builder and serves instead as the enabler the private sector can step up and create a policy environment that is stable and progressive; one that encourages and stimulates potential home owners with the right incentives,” he said.
The welcome speech was delivered by Secretary General and CEO of the Chamber of Construction Industry (CCI), Eng. Nissanka N. Wijeratne and an address by Eng. Major Ranjith Gunatilleke, President of CCI and Managing Director at Sanken Construction (Pvt) Ltd.
Following a Q&A session, the guest speakers concluded the forum by reiterating how enabling access to high-quality, middle-income urban housing can have a transformative impact on this country, on all its people and the economy at large, both on a social as well as an economical level.
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