Sri Lankan real estate company hit by falling prices

COLOMBO, Jun 1, 2009 (Asia In Focus via COMTEX) -- EQY | Quote | Chart | News | PowerRating -- The real estate arm of Sri Lanka's CARSONS CUMBERBATCH group said it was writing down the values of properties by 450.3 million rupees (US$3.9 million) as the prices slumped in the wake of tight monetary policy. "This year has been a challenging year where we saw a significant market correction on the property prices as a result of tighter credit conditions and a change in investor and customer attitude on real estate," EQUITY ONE LTD, a Carsons property firm said in a statement. 

* "The property values have reflected changes in interest rates and risk.

* "Unrest in the financial markets and uncertainty in the wider economy have added to the crisis of the property market."

For full details on Equity One Inc (EQY) click here. Equity One Inc (EQY) has Short Term PowerRatings of 3. Details on Equity One Inc (EQY) Short Term PowerRatings is available at This Link.

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Demand for property set to increase

With the conclusion of Sri Lanka's 30 year civil war the property market looks like a clear winner with locals and expats expected to look for real estate investment. However with a global recession slowly rearing it's head in Sri Lanka and the supply of condominiums outweighing the demand, property prices aren't expected to rise dramatically in the near future.