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Impact of demontisation on Land / Plot Price Trends

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Impact of demontisation on Land / Plot Price Trends

Last updated: December 7 2016
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  • Impact of demontisation on Land / Plot Price Trends

    It is known fact, people with black money had more purchasing power and hard earned white money holders supported by bank loan also found tough to match the offers of black money buyers.
    Now black money is chocked, people with white money start feeling the power of thier hard earned money, leading financial dailies published 30% drop in price trends, stock market reacted a 20-30 % dip in reality stocks analysts predict big fall in reality sector both in short and long term, but still sales executives of properties developers says No impact to price and real estate will only rise and never fall.

    Are the sales executives real experts?
    Why the offer price is still not reduced?

    Especially in plots and lands, demand surpassed, supply overwhelmed, what will happen to price ?

    Whatever is going to happen , when will it happen ?
  • #2

    #2

    Re : Impact of demontisation on Land / Plot Price Trends

    if RE folks start accepting there is a drop due to this then it will further decline their sales prospects. so they are acting as if this is a sliver lining and will have no negative impact. soon they will start saying this actually helped them sell more in the last quarter

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    • #3

      #3

      Re : Impact of demontisation on Land / Plot Price Trends

      Well Said, I would like to see the real prices in reality. But Chennai has lot of NRI white money. Definitely there will be a impact. Let us see how much

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      • #4

        #4

        Re : Impact of demontisation on Land / Plot Price Trends

        Originally posted by ashokb23 View Post
        It is known fact, people with black money had more purchasing power and hard earned white money holders supported by bank loan also found tough to match the offers of black money buyers.
        Now black money is chocked, people with white money start feeling the power of thier hard earned money, leading financial dailies published 30% drop in price trends, stock market reacted a 20-30 % dip in reality stocks analysts predict big fall in reality sector both in short and long term, but still sales executives of properties developers says No impact to price and real estate will only rise and never fall.

        Are the sales executives real experts?
        Why the offer price is still not reduced?

        Especially in plots and lands, demand surpassed, supply overwhelmed, what will happen to price ?

        Whatever is going to happen , when will it happen ?
        Real estate price don't fall so soon, it can take anywhere from 3-12 months. Transactions will not happen since buyers and sellers are too far apart. After a while if buyers dont show up, sellers will accept lower price. Right now sellers are still stuck to yesterdays price and hence think that its unfair to sell for lower price.

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        • #5

          #5

          Re : Impact of demontisation on Land / Plot Price Trends

          Originally posted by techynt View Post

          Real estate price don't fall so soon, it can take anywhere from 3-12 months. Transactions will not happen since buyers and sellers are too far apart. After a while if buyers dont show up, sellers will accept lower price. Right now sellers are still stuck to yesterdays price and hence think that its unfair to sell for lower price.
          Very True .

          Comment

          • #6

            #6

            Re : Impact of demontisation on Land / Plot Price Trends

            Agents, brokers are in the business to make money. We people assume that all these brokers are honest and whatever comes out are true. They have been fooling around for long time because thats what their pay masters are instructing them to do.. Unfortunately all these brokers are only looking for such people who would believe any nonsense they are saying

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            • #7

              #7

              Re : Impact of demontisation on Land / Plot Price Trends

              It is a really high risk to take any decisions during this time of uncertainty(Buy or Sell)...unless someone has the appetite for high risk taking attitude. But it is also a good opportunity to look for good buy when someone has disposable money through good bargain. RE Bill and PAN card inclusion already in place to take care of Black money transactions in RE.So price factor may have already been adjusted to this new trend of ALL WHITE transaction in RE. With RE Bill ratified in TN assembly and after forming the regulatory body, RE may be a credible & more transparent business but on the long run which will reignite the market but that may not happen immediately. All these are just one side of the spectrum, people need to earn more, jobs must stabilize, high productivity must be accomplished, infrastructure development must sustain...

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              • #8

                #8

                Re : Impact of demontisation on Land / Plot Price Trends

                An article from ET

                ​​
                "Realty is now bracing for sub-prime level crisis, which is expected to deeply impact the core of unorganised real estate and black money," PropEquity said.

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                • #9

                  #9

                  Re : Impact of demontisation on Land / Plot Price Trends

                  Impact in chennai

                  https://news.housebolo.com/home-pric...estate-market/

                  Comment


                  • Ramchi
                    Ramchi commented
                    Editing a comment
                    Mentioned brands do not seem to be premium and in anycase they all have been struggling to sell new launches and in progress projects...

                    With NPAs written off and with huge deposits into Banks can trigger easy money at lower interest rates like it did in 2003-2005...this will boost up prices eventually after two years IMO. Those who need immediate cash may need to settle for 20%~30% discounted rate..
                • #10

                  #10

                  Re : Impact of demontisation on Land / Plot Price Trends

                  Mentioned brand is just one example, just above an Economic times article says impact is more than 30%. Almost all leading financial dailies represented the same. Infact stock exchange too resulted it already.

                  Infact global leaders like cushman wakefield, knightfrank and national leaders like Hanu reality also reacts to current trend reflecting the reduction in pricing.

                  The NPA effect will not flood money, to compensate the write offs, bank will put up complex fees and charges to increase profitability and sustainability of banks and interest may not go beyond 7%.the 2 percentage change will be nothing to count in the current dynamics.


                  The only last action is RE developers and speculation traders should wake up and accept the fact, which they already started doing with seasoned buyers and hiding from first time buyers.

                  Just a matter of time.

                  Comment


                  • Ramchi
                    Ramchi commented
                    Editing a comment
                    For 30% reduction in RE prices, it requires far more reduction in salary/wages levels being paid at corporates, an exceptional supply of raw materials, finished products must line up at reduced cost. All these are possible, but structurally, it will reduce everyone's earning/savings...essentially, it will bring us back to the same situation with higher inflation with the gap between price vs affordability.....Unfortunately, a lot of intermingled factors may play spoilsport. But you never know
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