How did the Kurunegala perch price grow?
Greetings from myself and Knight Sky! I trust you are keeping well and hanging in there despite the trying times we live in. With all the bad news that has been going around and we witness first-hand, Knight Sky and I have decided that giving you something positive to read is best, both for your mental health and general mood. Yes, times are hard and there seems to be little good news. Let me divert your attention to the city of Kurunegala. Did you know that despite the hyperinflation and economic collapse, the perch price in this city has only been on the rise? That’s good news for those investing in real estate, don’t you think? Let me make use of this letter to explain how this happened.
First and foremost, it is due to infrastructure development. It’s a no brainer that the Central
Expressway has a direct, positive impact on the real estate market in Kurunegala. The demand for lands closer to highway exits started growing dramatically from 2019 onwards. By January 2022, the second phase of the Central Expressway from Mirigama to Kurunegala stretch was declared open, cutting drive time from Colombo to Kurunegala to just two and half hours.
Then came what we call Hedonic Regression. This means that when the perch price near the highway exits grew rapidly, the demand for surrounding areas also grew proportionately. This created an organic ripple effect. Like the waves formed when you drop a stone into a river!
Another reason I want to draw your attention to is that Kurunegala is not a brand new city. It is an old city, or a “Legacy City” as some call it. So, demand for lands in Kurunegala is not brand new either. The locals/ residents in Kurunegala also purchase land as an investment.
And of course, let’s not forget affordability. Although the price of land increased, it was and still is more affordable than Colombo. Because of this, not only are lands purchased frequently, but also, “repeat sales” lead to market growth.
It is also noteworthy that Wayamba Province is the only province in the country that requires a license for real estate developers to operate. Kurunegala, which belongs to this province, enjoys the benefit that only licensed real estate developers develop and sell lands. This assures quality control to the end purchaser.
And on an ending note, let me tell you this. Kurunegala requires Legally Clean Deeds or Titles. All land projects that CBH Lands has developed and sold therefore, have been legally cleared and verified by Mrs. S.B. Wanduragala, Attorney at law, as well as reputed commercial banks such as Sampath, HNB, NDB and PABC.
Isn’t that refreshing to know? A ray of hope for Sri Lanka amidst the crisis? I should think so! I hope this has left you enlightened and hopeful. Join me next time for more insight and keep those heads held high!