FACTORS AFFECTING TO BUYING DECISION OF MIDDLE-INCOME HOUSE BUYERS: STUDY ON SELECTED MIDDLE-INCOME HOUSE PROJECTS IN COLOMBO

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.