Abstract:
The Economic Development of the City of Colombo, caused to attracted large population to the
city for better living, employment purpose, education and so on. The lands were developed with
the development and fulfilling the needs of the housing of the residence in the city has become
a challenge. The high rise apartments have become better solution for housing and it has become
emerging sector in the Housing Market in Colombo. The study of the housing market become
vital since decision of house buying is complex and unique other than goods and services. This
paper has focused on the house buyer’s point of view and further specific to Middle Income
House buyers since Middle-Income-Category has identified as considerable proportion of the
population and impact on the Housing Market. Thus this paper discussed on the buying
behaviour of the buyers and the objectives of the research is to examine the factors influencing
to Middle-Income house buyers’ decision. The primary data was collected through
questionnaire survey from 100 potential buyers who are interested for Middle-Income houses
developed by the Urban Development Authority. Data was analysed through Categorical
Regression. From the study it was found that reasonability of the price of the house, increase
the price of the house, having enough monthly income to buy a house, readiness to
compromising daily expenses on non-housing expense of a house, having knowledge regarding
the way of getting and how profitable of using a Housing loan, and ability to get a loan are as
significant financial factors. Goodness or modernism of the structure of the house, sufficiency
of the space or room facilities are identified as significant physical factors. Under the
environmental factors, the quality and supply of water, quality of the surrounding environment
are also become as significant factors. Buying a house as new requirement because of a
marriage, to maintain the Social Status, and need of live as a community are the social factors
which significantly influence on the house buying decision.
