Selling property is not an easy task. Buyers are very watchful and precise in their decision-making, carefully assessing the value and potential returns on their investment. The duration it takes to sell a property, known as Time on Market (TOM), holds significant weight in the real estate market. It represents the period from the initial listing to the first deposit receipt. In this article, I explore the Time-on-Market (TOM) trends applicable to residential condominium units marketed through the provisional condominium plan within the city of Colombo, Sri Lanka. Prepare to uncover the key determinants influencing TOM within this dynamic market.
Extensive research has been conducted to identify numerous factors influencing TOM, including quality, initial listing date, listed price, and physical characteristics of the property. However, it is crucial to investigate whether these factors hold true in the unique context of Colombo’s condominium market, where properties often transact as pre-sales. While factors like advertising prices, proximity to the city center, and property characteristics have been found to influence TOM in the realm of homes, no study has specifically explored TOM in the pre-sale residential condominium market of Colombo.
To explore this fascinating topic, our study collected data from prominent property development companies, focusing on pre-sale residential condominium units listed between January 2016 and January 2019. The comprehensive analysis provided an insightful overview of the sample, while the regression analysis aimed to identify the predictors of TOM.
The study broadly examined 189 pre-sale residential condominium units in Colombo. The TOM from initial listing to first deposit for these properties ranged from 1 to 32 months, with an average of 12.76 months. When we narrowed our focus to the duration between the final listed date and the transaction date, we observed a range of 1 to 13 months, with an average of 5.51 months. These findings provide valuable insights into the typical timeframe for pre-sale residential condominium units in this market.
The in-depth analysis discovered relationships between TOM and various factors. We revealed that floor area, number of bathrooms, floor level, level of construction completion, and discounting rate offered played pivotal roles in influencing TOM. Notably, pre-sale condominium units with a floor area of 744 sqft, at the initial construction stage, and offered at a discount rate between 10% and 20% from the listed price were predicted to have the lowest TOM.
These findings empower property sellers, developers, and investors in Colombo’s pre-sale residential condominium market. Armed with this knowledge, they can strategically navigate the market, optimizing their investment decisions and maximizing their returns. Stay tuned as we unravel more insights and strategies to thrive in the dynamic real estate landscape of Colombo.
Click on the link belove to read more.
https://journals.sjp.ac.lk/index.php/icremv/issue/view/287: Decoding Time on Market in Colombo’s Pre-Sale Condominium Market