TIME ON THE MARKET OF RESIDENTIAL CONDOMINIUM UNITS WITH PRE-SALE ARRANGEMENT IN COLOMBO DISTRICT
The purpose of this paper is to study the time on market (TOM) for residential condominium units under pre sales arrangements and what key factors drive that TOM. The contextual understanding of previous studies on TOM for residential properties confined for properties sold either in the secondary market or properties where construction is completed. This study focuses on the relationships among TOM, listed price, and basic property characteristics of residential condominium units sold under the provisional condominium plan in Colombo, Sri Lanka. Following non-probability sampling technique, this study examines TOM of 189 pre-sale residential condominium units in Colombo district which came into market between 2016 January to 2019 January. Developers were approached to collect required data such as transaction price, transaction date, final listed date listed price, number of bedrooms, number of bathrooms, floor area, floor level, construction completion, discounting rates likewise. Data analysis followed descriptive statistics, Pearson Correlation, and multiple regression model. The analysis highlighted that from January-2016 to January-2019, TOM of provisional residential condominiums of Colombo varied from 12.76 to 5.51 months. The results further highlighted that the TOM of a pre-sale provisional residential condominium unit is a function of floor area, number of bathrooms, level of the unit, construction completion & discount rate. The study highlights that during the period considered, the floor area units of 744sqft at the initial stage of construction with a discount rate between 10% to 20% from the listed price can predicted to have the lowest TOM..
Keywords: Time on the Market; Pre-sale; Residential Condominium Units; Listed Price; Transaction