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Home sales going down !!!

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Home sales going down !!!

Last updated: July 25 2013
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  • #11

    #11

    Re : Home sales going down !!!

    Originally posted by rajureporter View Post
    Are we in a housing bubble now, because property prices are skyrocketing especially in the metro areas? Does it make housing a buyer's market?

    Is the bubble going to explode anytime soon or the black money economy will continue to push up housing prices?
    Would appreciate feedback!!
    thanks
    core areas will be unaffected for example price in JP nagar ,Jai angar ,Malleshwarm,Indiranagar or Hebbal will be stable .while Kanakapura road or devanhalli or kengri or Whitefield behind ITPL will see the effect of recession

    It's like Closer you are to CBD lesser will be the Price drop

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    • #12

      #12

      Re : Home sales going down !!!

      Check the latest Jones Lang LaSalle Research real estate monitor report on 7 major Indian cities including Bangalore. It gives an indication about the current trends in rental prices & property prices across these cities.

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      • #13

        #13

        Re : Home sales going down !!!

        Originally posted by akash481 View Post
        Check the latest Jones Lang LaSalle Research real estate monitor report on 7 major Indian cities including Bangalore. It gives an indication about the current trends in rental prices & property prices across these cities.
        Doesn't help much. This is only the current price and not the future trend.

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        • #14

          #14

          Re : Home sales going down !!!

          Originally posted by nash2050 View Post
          core areas will be unaffected for example price in JP nagar ,Jai angar ,Malleshwarm,Indiranagar.Hebbal will be stable .while Kanakapura road or devanhalli or kengri or Whitefield behind ITPL will see the effect of recession
          That's the main funda of RE.

          But once the suburbs is developed, it becomes a self sustained micro-market.

          So if there are enough occupied offices , malls, schools not much will go wrong like ORR and marathalli.

          Also i have an example:
          Purva fountainsquare was badly hit in 2008-09 recession and was selling at around 55-60lacs for 1680 sqft.

          Now in 2012, same flat is at 1.1 crore+.

          This was a suburbs and see how the appreciation has happened.

          If there is another recession, do you think Purva Foun. will be quoting at 75-80 lacs? considering 20-25% decrease in price.

          I dont think so. Once the society is done and people are stayin there , price depreciation risk is more or less mitigated. ALso the price appreciation may be less.

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          • #15

            #15

            Re : Home sales going down !!!

            Originally posted by Gaurav2k101 View Post
            The prices of flats in suburbs is itself 80 lacs +. So suburbs is no longer affordable.

            Today even if a small road comes in suburbs the prices appreciates by 20-30%. See how Sarjapur road has appreciated with the news of Infosys.

            Also the point was that there are soo many flats on ORR , KRPuram , Whitefield, Marathalli area which costs 80 lacs +. For 10% appreciation, the price will be 1.3crore in 5 yrs hence. So who will buy these flats then ?
            I dont think prices at Sarjapur, Hosakote, Devanahalli have reached 80 lacs. In fact you can get a good villa with 1500 sqft BUA for 50 lacs.

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            • #16

              #16

              Re : Home sales going down !!!

              Originally posted by SS1983 View Post
              I dont think prices at Sarjapur, Hosakote, Devanahalli have reached 80 lacs. In fact you can get a good villa with 1500 sqft BUA for 50 lacs.
              yes u may get that from a very small time builder and that too around 15 km away from Wipro corporate office.

              Search for the projects from builder Brigade, Mantri, Salarpuria, Prestige , RMZ , Godrej, Embassy etc. in these locations.

              Also just search on villa in whitefield. Even the builder like skylark asks for 2 crore+.

              Comment

              • #17

                #17

                Re : Home sales going down !!!

                Originally posted by Gaurav2k101 View Post
                yes u may get that from a very small time builder and that too around 15 km away from Wipro corporate office.

                Search for the projects from builder Brigade, Mantri, Salarpuria, Prestige , RMZ , Godrej, Embassy etc. in these locations.

                Also just search on villa in whitefield. Even the builder like skylark asks for 2 crore+.
                now- you are not comparing an to an .
                if someone is charging 2 crs- he is also providing you amenities worth 2 crs.
                wts a difference between nike and bata then.they all the same .but you are paying for the brand/quality/credibility/etc etc etc when you buy a nike hence the price.

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                • #18

                  #18

                  Re : Home sales going down !!!

                  Originally posted by Gaurav2k101 View Post
                  yes u may get that from a very small time builder and that too around 15 km away from Wipro corporate office.

                  Search for the projects from builder Brigade, Mantri, Salarpuria, Prestige , RMZ , Godrej, Embassy etc. in these locations.

                  Also just search on villa in whitefield. Even the builder like skylark asks for 2 crore+.
                  Not sure what do you mean when you say even builder like skylark charges 2 cr for a villa. If the intent to demean skylark then Skylark ESTA which is an aptmt. is priced higher than PSN in the same area, even thou PSN is a ready to move and ESTA is just launched

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                  • #19

                    #19

                    Re : Home sales going down !!!

                    Originally posted by nash2050 View Post
                    core areas will be unaffected for example price in JP nagar ,Jai angar ,Malleshwarm,Indiranagar or Hebbal will be stable .while Kanakapura road or devanhalli or kengri or Whitefield behind ITPL will see the effect of recession

                    It's like Closer you are to CBD lesser will be the Price drop
                    To put it more bluntly - areas where people have more debt will definitely see a major hit (Whitefield/ORR/Sarjapur) if job losses happen- undoubtedly techies with their herd mentality.

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                    • #20

                      #20

                      Re : Home sales going down !!!

                      Originally posted by kumars17 View Post
                      Not sure what do you mean when you say even builder like skylark charges 2 cr for a villa. If the intent to demean skylark then Skylark ESTA which is an aptmt. is priced higher than PSN in the same area, even thou PSN is a ready to move and ESTA is just launched
                      Not to demean Kumars17, but just want to understand the rationale behind all this. As per ur example only , Skylark has completed very few small projects and now it's project ESTA is quoting higher than a ready to move in project from TierA builders like Brigade Metro.., PSN and even Gopalan Grandeur which is just next to ESTA.

                      Now if someone buys ESTA would u say it will appreciate more compared to other projects?

                      Is it still advisable to buy these newly launched projects at such rates?


                      Are these prices justifiable ? Esta was launched at 3500+ , around 1 yr back. Now it is quoting 4500+. In 1 yr almost 30% price hike. Is it healthy nd sustainable growth?

                      If recession hits, which project prices will go down first? Obviously these launched projects because:
                      1) Builder will delay the construction.
                      2) Builder will also cut corners to save money.
                      3) Everythings looks rosy on the brohure but end product is different. Hence in a ready to move in you know what u r getting.
                      4) U will not b able to sell if required in tough times whereas u'll easily get a good rent in a ready to move in. So an owner will think of keeping 1-2 more years n then sell coz he is already getting some income from it.

                      Also fail to understand why people buy newly launched at more price then a ready to move in.

                      1 reason i can think of is that in newly launched one doesn't need to pay the money upfront and have a breather's time for 1-2 yrs.

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