I was just browsing checking for property prices in Colombo.
I'm seeing basic 2 bedroom apartments in Colombo going for ~50 million LKR. Then you look at the luxury end (Cinnamon Life, Havelock City, Altair, ITC, Sapphire Residences) and you're looking at ~150 million LKR and upwards.
The "top 10%" of earners in this country make around ~300,000 LKR a month. Even if you saved every single cent of that salary, it would take you 14 years just to afford the "basic" 50M apartment (assuming zero inflation and no interest).
I know these are being sold and people are living inside these places due to market being flooded with new apartment projects.
Would like to know:
- Who are buying these?
- Would the property market bubble burst anytime soon (will prices decrease in the foreseeable future)?