Determinants of Market Value for Condominium Properties: Case Study in Dehiwala, Colombo.

Abstract

Abstract
Sri Lanka is one of the fastest growing economies in Asia. In this growing environment, the real estate market has shown a significant growth, with an increase in price levels of real estate assets. The high value segments in this market are luxury apartments and condominium sector. Condominium market shows a significant extend over the past two to three years. Urbanization, land shortage are the main reasons for the increased demand of the condominiums, particularly in the Western Province. When compared to value of real properties, condominiums have higher market value than other real properties. To monitor the condominium market, the first issue is to understand what are the determinants of market value for the condominium properties. There are number of factors affecting the market value of condominiums. Based on these factors market value will be changed from one property to another property. Property market buyers and sellers are highly depending on these factors, when buying and selling condominium units. Therefore, it is important to identify current condominium property market and factors affecting market value of condominiums.
This research conducting based on Dehiwala Mount Lavinia Municipal Council Area. Participants in this survey were condominium housing unit owners in selected case study area. From 650 condominium units, 120 units are randomly selected. Findings of this study highly depend on primary data and it collected from the Structured Questionnaires and Field Visits. Each participant was given a questionnaire which contains demographic information and determinants of market value of condominium properties. Determining criteria divided in to 5 major categories and respondents are select one item from 5-point scale ranging from strongly agree to (1) strongly disagree (5). The data analysis of the study is presented descriptively.
Location is the most significant factor to determine the market value of condominium properties. In additionally, Neighborhood and Community factors are highly affecting to determine the market value of condominium properties.
Keywords: Real Estate, Condominium Market, Market Value, Determining Factors, Factor Analysis