Parameters for buying a condo Essay

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A survey of the parametric quantities considered in demanding a luxury CondominiumChapter 1

by possible purchasers with particular mention to metropolis of Colombo.

Chapter ONE

Introduction

  1. Background of the survey

Real estate can be defined as land above the Earth surface to the eternity and below the Earth surface to centre of the Earth including all natural and unreal things attached to it.

The construct of existent estate gets broader due to the human activities which occur from clip to clip. The belongings development procedure has a critical impact on these alterations. Property development is the procedure of heightening the value of existent estate by doing physical alterations and the betterments at that place to through the application of capital and entrepreneurial accomplishments by a belongings developer ( Ramachandra, 2001 ) . Because of these developments several existent estate belongings types have been formed.

 

Among these existent estate belongings types residential belongingss are of extremely importance because it is straight combined with one of the chief homo demands which is lodging or shelter. Over the old ages as explained above, the lodging has besides been evolved from caves to super luxury condominiums. Condominiums are a new tendency which drastically changed the lodging sector of the universe.

Harmonizing to Kowshala, 2002 it describes condominium as a particular construction which has several units where interior infinite is owned separately and the other common countries are owned by each and every proprietors of single units normally.

Therefore, a condominium is a type of belongings which has the ability of suiting several households in a individual secret plan of land. The major grounds for this type of belongings development are the scarceness of land, urbanisation, higher income degrees, increasing population and etc. There are several types of condominiums as semi luxury, luxury and ace luxury condominiums based on the installations available. Among these three types the emerging tendency is the luxury condominium class.

24 hr security, CCTV & A ; intercom system with panic button for exigencies, Fire protection and sensing system, Garbage disposal systems, Elevators, Hot H2O geysers, MATV connexion, Children play country, Vehicle park, Private balconies, Air conditioned flat blocks, Swiming pool, Restaurant and saloon, Gymnasium, Laundry, Central gas supply system can be seen as the installations supplied in luxury condominiums ( Sepani Senaratne, Nisa Zainudeen, Chitra Weddikkara, 2006 ) .

Within Sri Lanka, condominiums have been developed over the last decennary really quickly, particularly after the twelvemonth of 2009 where the war was ended. Condominiums can be seen mostly in Colombo metropolis as it is the cardinal concern territory of Sri Lanka. In earlier times, merely the local developers were involved in developing condominiums. But after the war season, the peaceable background every bit good as the supportive authorities determinations attracted international developers to the sector of developing luxury condominiums with in the metropolis bounds. As a consequence of this, luxury condominium undertakings were initiated by international developers which cost 1000000s of dollars.

These international developers initiated these developments aiming the people who will travel from rural countries to urban countries, international migrations and high-net-worth persons. So the demand for these luxury flats will be generated by above mentioned client groups. When demanding a luxury flat these possible purchasers will see several parametric quantities. Harmonizing to ( Sepani Senaratne, Nisa Zainudeen, Chitra Weddikkara, 2006 ) the possible purchasers will see the undermentioned factors when demanding a condominium.

  • Convenience in buying.- Quality
  • Modern facilities.- Financial installations.
  • Aesthetic appearance.-After gross revenues services.
  • Good location.-Floor country.
  • Low-cost prices.-Security.
  • Time salvaging.
  • Secured parking.
  • Flexible payment strategies.
  • Prestige value.
  • Peaceful vicinity.

If the possible purchasers are non satisfied with the parametric quantities they consider, so they will avoid buying the condominium flat which will bring forth negative impacts on the developer.

So this survey will place the demographic background of the possible purchasers and will place the parametric quantities that possible purchasers will see when buying a condominium flat and will place the impact of each identified factor on the purchasing determination.

  1. Problem Statement

Harmonizing to ( Sepani Senaratne, Nisa Zainudeen, Chitra Weddikkara, 2006 ) developers who are involved in condominium development have to travel through several activities like buying of unutilized land or land with bing edifice and its development, debut of substructure installations, building of flats and disposal to the prospective purchasers or allow it for rent. So they have to dump 1000000s of money in these undertakings, with the perceptual experience that the all flats will be sold out or rented out. But there is a hazard of non go oning as expected. The clients will non purchase it due to several grounds. They may be general grounds or personal grounds. Because of this the developer will loss clients who have the potency to purchase these really expensive luxury condominiums. So the developer will hold to endure loss of 1000000s or one million millions of money. But if the developer can clearly hold an apprehension about the factors which affect for the customers’ purchasing determination, the developer will be able to develop the condominium belongings as per the outlooks of the clients. So so the developers’ investing will be to the full succeeded. So this survey will hold on a sound cognition about the factors that will impact for a customer’s purchasing determination in condominium flat.

  1. Significance of the survey

This survey is focused on placing the parametric quantities that a possible purchaser will see when demanding a luxury condominium belongings. So this will be really utile for the belongings developers and the belongings sellers.

Property developers will hold the opportunity of safe guarding their investing by planing the development as per the parametric quantities which will be considered by the possible purchasers. Then they will non lose the possible purchasers and the buying rate of condominiums will be high. So this survey will assist them to develop the condominium belongings sing the parametric quantities.

The condominium sellers find it really hard in marketing the undertaking because it is a different trade good type than others. The general selling methods will non bring forth the expected consequences for the condominium belongingss. This is chiefly because of the deficiency of cognition about the client behaviour and client penchants in condominium belongings market. So if sellers will be able to acquire a sound cognition about the parametric quantities that the possible purchasers are sing when buying a condominium flat, they will be able to market the undertaking aiming those parametric quantities. Then the selling runs will be to the full succeeded.

As a specific aim of this survey, it will place the demographic background of the possible purchasers which will be helpful for condominium gross revenues personals. Condominium Sellerss excessively face troubles in happening the possible purchasers because selling condominium flats is non easy as selling retail goods. The chief ground for this is the deficiency of clients who can afford to purchase these 1000000s worth flats. So the gross revenues individuals should hold a general thought about the mark group of clients. If non, the investing of the developer will be a loss. But if the gross revenues individual can clearly place the mark group, so selling procedure will be easy.

So this survey will hold on a sound cognition about the

– Demographic background of the possible purchasers of luxury condominium flat, which will assist gross revenues personals in aiming the client base.

– Parameters which will be considered by possible purchasers in demanding a luxury condominium flat which will assist the condominium developer and the seller in their work.

1.4 Aims of the survey

General Objective.

  • Identify the factors impacting to the customer’s purchasing behaviour in condominium flat.

Specific aims

  • To analyze on factors impacting to the clients purchasing behaviour in condominium flats.
  • Identify the strength of the factors to the purchasing behaviour determination in condominium flats.
  • Identify the demographic background of the possible purchasers of condominium luxury flats.
  • To offer suggestions based on the findings of the survey.

1.5 Conceptual Frame work

1.6 Methodology

1.6.1Datas and Data Collection

A comprehensive literature study carried out with the usage of books, diaries and articles in the purpose of happening bing cognition on assorted factors that will be considered by a possible purchaser in buying a luxury condominium flat.

This survey is based on qualitative and quantitative informations based on primary informations and secondary informations. The information will be collected as follows.

1.6.2 Population

The population of this survey will be the possible purchasers who will demand luxury condominium flats in all luxury condominium undertakings which are situated with in Colombo metropolis bounds.

1.6.3 Sample choice

The sample for the information aggregation will be the possible purchasers that will see the ASTORIA gross revenues office which is a luxury Condominium flat situated in Colpity ( Colombo 03 ) .

1.6.4 Data Analysis

  • Descriptive analysis will be used to analyse the informations about the demographic background of the possible purchasers. Demographic factors like age, gender, income degrees, profession and etc will be analyzed. Following will be applied for the analysis procedure.
  1. Mean
  2. Manner
  3. Medium
  4. Percentage
  5. Probability constructs
  • Inferential analysis and hypothesis testing will be used for the analysis of the parametric quantities considered by the possible purchasers when demanding a luxury condominium flat.

Y = X1+X2+X3+X4+X5+X6+X7+X8+X9+X10………… .

The strength of the impact on each factor on the buying determination will be measured utilizing the arrested development analysis.

  • Hypothesis proving

To place the relationship between dependent variables and independent variables of this survey hypothesis testing will be used. The determination to buy will go the dependent variable while the factors that will be considered by the possible purchasers ( location, installations, security, fiscal services and etc. ) will go the independent variables. The hypothesis premises can be described as follows.

  • Location factor

Hydrogen0– There is no relationship between the location factor and the buyer’s

buying determination.

Hydrogen1– There is a relationship between the location factor and the buyer’s

buying determination.

  • Facilities factor

Hydrogen0– There is no relationship between the installations factor and the buyer’s

buying determination.

Hydrogen1– There is a relationship between the installations factor and the buyer’s

buying determination.

  • Aesthetic visual aspect factor

Hydrogen0– There is no relationship between the Aesthetic visual aspect factor

and the buyer’s buying determination.

Hydrogen1– There is a relationship between the Aesthetic visual aspect factor

and the buyer’s buying determination.

  • Low-cost monetary values factor

Hydrogen0– There is no relationship between the Low-cost monetary values factor

and the buyer’s buying determination.

Hydrogen1– There is a relationship between the Low-cost monetary values factor and the

buyer’s buying determination.

  • Secured parking factor

Hydrogen0– There is no relationship between the Secured parking factor

and the buyer’s buying determination.

Hydrogen1– There is a relationship between the Secured parking factor and the

buyer’s buying determination.

  • Flexible payment strategies factor

Hydrogen0– There is no relationship between the Flexible payment strategies factor

and the buyer’s buying determination.

Hydrogen1– There is a relationship between the Flexible payment strategies factor

and the buyer’s buying determination.

  • Prestige value factor

Hydrogen0– There is no relationship between the Prestige value factor

and the buyer’s buying determination.

Hydrogen1– There is a relationship between the Prestige value factor and the

buyer’s buying determination.

  • Peaceful vicinity factor

Hydrogen0– There is no relationship between the Peaceful vicinity factor

and the buyer’s buying determination.

Hydrogen1– There is a relationship between the Peaceful vicinity factor and

the buyer’s buying determination.

  • Repute of the developer factor

Hydrogen0– There is no relationship between the Reputation of the developer

factor and the buyer’s buying determination.

Hydrogen1– There is a relationship between the Reputation of the developer

factor and the buyer’s buying determination.

  • Fiscal installations factor

Hydrogen0– There is no relationship between the Financial installations factor

and the buyer’s buying determination.

Hydrogen1– There is a relationship between the Financial installations factor

and the buyer’s buying determination

1.7 Restrictions of the survey

  • The survey is limited merely to the possible buyers’ point of position instead than the positions of gross revenues personals, developers and sellers.
  • The survey focused the ASTORIA luxury flats as the survey country which is situated in Colombo-03.
  • The survey focused on merely for the luxury Condominium flat type.

 

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