1 June 2024 01:16 am Views - 149
The sales momentum for the residential apartments at the City of Dreams Sri Lanka integrated resort witnessed a slowdown; however, John Keells Holdings (JKH) expressed confidence in the situation improving going forward.
The sales momentum has been slow in line with the trends seen in the luxury segment in Colombo, JKH said in its latest annual report.
The subdued demand for residential units was further impacted by the introduction of the Value Added Tax (VAT) and Social Security Contribution Levy (SSCL) in the previous year, the company said in its latest annual report.
The introduction of the VAT and SSCL increased the price of apartments by 17.5 percent, although it had a greater impact on the luxury segment, considering its higher price point, it added.
“The group is confident that the sales momentum will gradually pick-up, given the completion of the integrated resort and conclusion of many vital elements, relating to the gaming space,” said JKH Chairperson Krishan Balendra in his message.
“Further, the cost of constructing similar apartments today would be significantly higher, where the existing units will be an attractive and valuable proposition with almost no new inventory in the luxury segment in the pipeline,” he added.
The construction work at the integrated resort progressed well during the year under review, with the hotel, gaming and retail components currently in the final stages of completion and fit out.
The project obtained a key approval in the third quarter of 2023/24, with the receipt of the Certificate of Conformity (COC) on building construction for the first 24 floors of the hotel complex, which will comprise of the Cinnamon Life hotel, due to be launched in the third quarter of 2024/25. The remainder of the integrated resort, comprising of the 113-key Nuwa hotel, casino and the mall, is slated for opening in mid-2025.
Meanwhile, the latest residential project ‘Viman’, launched by John Keells Properties in September 2023, is being well received.
The preliminary sales interest for the project has been very encouraging, with the first phase of the project consisting of a total of 114 units, nearly sold out within six months since the launch of the project in September 2023, Balendra said.
Viman, located in the heart of Ja-Ela, a suburban area in close proximity to Colombo, is spread across six acres, offering a harmonious blend of modern comforts with 418 apartments.
Viman offers the distinct advantage of proximity to the Colombo Port Access Elevated Highway, facilitating convenient connectivity between Ja-Ela and Colombo.
Given the traction for the project, the second phase, comprising of 76 units, was launched in March 2024.
The construction of the first phase of the project is expected to commence in mid-2024.