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Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

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Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

Last updated: June 8 2018
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  • Re : Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

    Originally posted by srivat View Post
    Guys, Most in the forum are pretty experienced. I am just a starter into RE but sometimes just for the sake of arguing on a particular person comment it is not correct to post without analyzing the facts.

    I dont really believe on these notional price rise and only comment on it if asked for.

    Quoting AREL does not increase price unnecessarily and they have got their margins talk are really BS.

    The price increase depends on multiple factors, the locality, demand, floor plan, premium specs and nearby pricing. In case of Greenville there is not real scope with the entire shols to siruseri stretch struggling and with very common floor plan.

    I have good respect for AREL as they are very committed but that does not mean they have the perfect delivery model. They are far better then other local builders around.

    Mapelton quoted at 4150 now quoting at 5400 is this not an increase - Again it is because Location Location Location. I have recommended mapelton to my friends and in this forum as well because of location even though the floor plan is very common. SO again I am not against AREL.

    Springs was launched at 5750 and last selling price by builder was 9000 per sq ft all in less than 2 years. They raised from 7000 per sq ft to 8000 per sq ft in 2 months time. Again yes it is Thiruvanmayur. A decent lane opposite to RTO with unlaid road for last 3 year, around 700 meters inside. But still they were able to raise because these are temporary factors and in long term it will change.

    It all depends on the demand they see. My uncles who are in ME booked 3 flats and I have been closely monitored Springs progress. There was a one year delay but not that bad compared to other builders.

    They dont reduce now someone asked for proof which I dont have since no one has written proof of these things. But I have seem they reduced from 6250 at that time to 6100 as they booked 3 flats by paying 40% down payment on the spot. Believe or leave it.

    No builder is a Saint and they dont run not for profit organization. Raw material and labour increase is not the only reason they rise the cost for all depends on location and project outlook.
    Very sensible post. No builder is saint or run non-profit organization. Arguments like Appaswamy doesn't run behind profit and therefore don't raise prices are bull shit. Every builder is profit oriented and will raise price when there is opportunity.

    Also it is well known that builders offer discount when you offer to make huge downpayment. Different builders have different approach. Members have posted how Hira and Appaswamy offer discount when you make higher downpayment.

    Asking for proof is extremely silly. The very same members demanding proof are confidently saying Appaswamy has sold out 85% of units in Greenville. Can they show proof? But I won't ask them, I trust them. It is hard for builders to tamper list of available units, respectable builders won't do it.
    Last edited September 4 2013, 11:28 AM.

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    • Re : Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

      Originally posted by srivat View Post
      Guys, Most in the forum are pretty experienced. I am just a starter into RE but sometimes just for the sake of arguing on a particular person comment it is not correct to post without analyzing the facts.
      No need for prologues and disclaimers. You are entitled to your views and so long you shoot them straight, no one should have any issues.

      Originally posted by srivat View Post
      Quoting AREL does not increase price unnecessarily and they have got their margins talk are really BS.
      A touch of humility could help. Again you are entitled to your view.

      Originally posted by srivat View Post
      The price increase depends on multiple factors, the locality, demand, floor plan, premium specs and nearby pricing. In case of Greenville there is not real scope with the entire shols to siruseri stretch struggling and with very common floor plan.
      Of course, price increase depends on multiple factors listed above and more. What exactly does it have to do with GV or AREL? How many times did CEEBROS increase the price during the 8 odd months they worked on Belvedere? If Shols area is struggling and that is your conclusion, so be it. What correlation does it have with the expectation AREL should increase price for GV on regular basis? Or why should they do it? Have you seen them jack-up price blindly like Malles and then revert to original price? They published a price and are holding on to it or increased it marginally after completion of a milestone.

      Originally posted by srivat View Post
      I have good respect for AREL as they are very committed but that does not mean they have the perfect delivery model. They are far better then other local builders around.
      Who said they have the perfect delivery model. Again, that is your own interpretation. They have "a" model which has been keeping them in business for 50+ years. You are in no obligation to certify that theirs is the perfect delivery model.

      Originally posted by srivat View Post
      Mapelton quoted at 4150 now quoting at 5400 is this not an increase - Again it is because Location Location Location. I have recommended mapelton to my friends and in this forum as well because of location even though the floor plan is very common. SO again I am not against AREL.
      How long has Mapleton been in development and what stage is it at this point? How long has GV been in actual development and what stage is it right now? Calculate the proportionate increase in base-price over time and project maturity (milestones, %sold etc).

      Originally posted by srivat View Post
      Springs was launched at 5750 and last selling price by builder was 9000 per sq ft all in less than 2 years. They raised from 7000 per sq ft to 8000 per sq ft in 2 months time. Again yes it is Thiruvanmayur. A decent lane opposite to RTO with unlaid road for last 3 year, around 700 meters inside. But still they were able to raise because these are temporary factors and in long term it will change.

      It all depends on the demand they see. My uncles who are in ME booked 3 flats and I have been closely monitored Springs progress. There was a one year delay but not that bad compared to other builders.
      Springs Price over 30+ months (information available in public domain)
      Jan-2009 - 5750 psft
      Mar 2010 - 6350 psft
      Mar 2011 - 7100 psft
      Jun 2011 - 7500 psft

      Hope you can do the math on how much AREL has increased price over the project development period. Get your facts right. It is easy to get carried-over by anecdotal narrations!


      Originally posted by srivat View Post
      They dont reduce now someone asked for proof which I dont have since no one has written proof of these things. But I have seem they reduced from 6250 at that time to 6100 as they booked 3 flats by paying 40% down payment on the spot. Believe or leave it.
      Again, anecdotal. I'll leave it.

      Originally posted by srivat View Post
      No builder is a Saint and they dont run not for profit organization. Raw material and labour increase is not the only reason they rise the cost for all depends on location and project outlook.
      No one claimed AREL is saint. They do business for profit - that too successfully over the last 50+ years!

      Let me give you certain basic information on the ground rules with which they operate. Mav had already provided a list. Let me add to that.
      1. They don't build mega projects that run for many years across many phases
      2. All blocks/phases are handed-over at the same time
      3. They don't need to keep buyers in earlier phases happy by launching new phase at higher price
      4. Booking names are NOT TRANSFERABLE before hand-over
      5. Buyers CANNOT Flip at a rate lower to builder rate and escape
      6. Original buyer is locked-in till delivery
      7. AREL doesn't want original buyers to cannibalize their sales by flipping for lower rate
      8. AREL is interested in getting the least preferred units (that typically remain till the end) cleared ASAP due to the relatively non-jacked-up lower rate so that AREL can hand-over move out of the project at the earliest
      Let me reiterate. I am not claiming that their model is perfect. But it has kept them at business successfully over half a century. As "iceemani" posted - most of their buyers perceive them as honest builder, which you too seem to agree based on your post.

      Comment


      • Re : Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

        Originally posted by bloodandsand View Post
        No need for prologues and disclaimers. You are entitled to your views and so long you shoot them straight, no one should have any issues.



        A touch of humility could help. Again you are entitled to your view.



        Of course, price increase depends on multiple factors listed above and more. What exactly does it have to do with GV or AREL? How many times did CEEBROS increase the price during the 8 odd months they worked on Belvedere? If Shols area is struggling and that is your conclusion, so be it. What correlation does it have with the expectation AREL should increase price for GV on regular basis? Or why should they do it? Have you seen them jack-up price blindly like Malles and then revert to original price? They published a price and are holding on to it or increased it marginally after completion of a milestone.



        Who said they have the perfect delivery model. Again, that is your own interpretation. They have "a" model which has been keeping them in business for 50+ years. You are in no obligation to certify that theirs is the perfect delivery model.



        How long has Mapleton been in development and what stage is it at this point? How long has GV been in actual development and what stage is it right now? Calculate the proportionate increase in base-price over time and project maturity (milestones, %sold etc).



        Springs Price over 30+ months (information available in public domain)
        Jan-2009 - 5750 psft
        Mar 2010 - 6350 psft
        Mar 2011 - 7100 psft
        Jun 2011 - 7500 psft

        Hope you can do the math on how much AREL has increased price over the project development period. Get your facts right. It is easy to get carried-over by anecdotal narrations!




        Again, anecdotal. I'll leave it.



        No one claimed AREL is saint. They do business for profit - that too successfully over the last 50+ years!

        Let me give you certain basic information on the ground rules with which they operate. Mav had already provided a list. Let me add to that.
        1. They don't build mega projects that run for many years across many phases
        2. All blocks/phases are handed-over at the same time
        3. They don't need to keep buyers in earlier phases happy by launching new phase at higher price
        4. Booking names are NOT TRANSFERABLE before hand-over
        5. Buyers CANNOT Flip at a rate lower to builder rate and escape
        6. Original buyer is locked-in till delivery
        7. AREL doesn't want original buyers to cannibalize their sales by flipping for lower rate
        8. AREL is interested in getting the least preferred units (that typically remain till the end) cleared ASAP due to the relatively non-jacked-up lower rate so that AREL can hand-over move out of the project at the earliest
        Let me reiterate. I am not claiming that their model is perfect. But it has kept them at business successfully over half a century. As "iceemani" posted - most of their buyers perceive them as honest builder, which you too seem to agree based on your post.
        The mail was a plain repercussion on you talking about attaining margins and others assuming AREL does not increase price.

        Other points are well agreed and were never debated so again reiterating may not be required as I bought it already.

        For springs below is the data post June 2011 I hope from the same domain you inferred. Increasing in a months time and assuming they are not running after margins !

        Yes they are good along with Navins and few others which I have not denied it also. So I am with icemani or who ever said it.

        mapelton had a decent increase well before they attained this level. So comparing it to today status is not at the best in case the discussion is about AREL price increase trends.
        Attached Files
        Last edited September 4 2013, 09:16 PM.

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        • Re : Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

          Ok. to make a long story short. AREL is not a saint, he is a good businessman. based on some factors he increases price in some project and doesnt increases in some projects.

          if AREL increases prices because of demand he is "realistic" businessman,i would appriciate its way of business.
          if AREL increases just because its has got CMDA approval then it is an "opportunistic" business menatality, which many other builders in chennai are doing.

          i like to give the lietral menaing for "opportunistic" just to make sure i got my point expressed right here,

          opportunistic-exploiting chances offered by immediate circumstances without reference to a general plan or moral principle

          lets wait and watch for the Price of GV in near future to judge if AREL follows "Realistic" or "Opportunistic" business model.

          Comment


          • Re : Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

            Originally posted by srivat
            Mapelton quoted at 4150 now quoting at 5400 is this not an increase - Again it is because Location Location Location.
            You *think* it is because of Location. It has been 3 years since Mapleton was launched You can wait for 2 more years for the right-duration comparison. Even if it did not rise at the rate of Mapleton, you may still not have irrefutable basis to attribute that to Location - at best it is what you think.

            I would say Mapleton *may* have also got the benefit of K&F report and the lift Pallikaranai had. If I remember right, they were struggling for a year or little more since the launch and had a slow booking rate - demand and interest went up towards the latter part and end.

            Expecting the rise of RE values to be linear[short timeframes] and using the aberration to give a specific color is at best a subjective view.

            Originally posted by srivat
            mapelton had a decent increase well before they attained this level. So comparing it to today status is not at the best in case the discussion is about AREL price increase trends.
            You are using price increase as a proxy for demand and preference. Why not booking rate? Mapleton had a sluggish booking rate relative to Greensville. All the 2 BHKs in GV was booked/sold with in 6-9 mos of the launch (15% of unit total). Reason for lower increase in price could also mean that initial price was richer than it should have been. Supply situation in the vicinity. Grade separator fear could be another possibility. There can be many reasons for prices to behave.

            Just because, RE is about location, location, location attributing that for price correlation in near term is too far fetched.
            Last edited September 5 2013, 07:17 AM.

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            • Re : Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

              Originally posted by maverick007 View Post
              You *think* it is because of Location. It has been 3 years since Mapleton was launched You can wait for 2 more years for the right-duration comparison. Even if it did not rise at the rate of Mapleton, you may still not have irrefutable basis to attribute that to Location - at best it is what you think.

              I would say Mapleton *may* have also got the benefit of K&F report and the lift Pallikaranai had. If I remember right, they were struggling for a year or little more since the launch and had a slow booking rate - demand and interest went up towards the latter part and end.

              Expecting the rise of RE values to be linear[short timeframes] and using the aberration to give a specific color is at best a subjective view.



              You are using price increase as a proxy for demand and preference. Why not booking rate? Mapleton had a sluggish booking rate relative to Greensville. All the 2 BHKs in GV was booked/sold with in 6-9 mos of the launch (15% of unit total). Reason for lower increase in price could also mean that initial price was richer than it should have been. Supply situation in the vicinity. Grade separator fear could be another possibility. There can be many reasons for prices to behave.

              Just because, RE is about location, location, location attributing that for price correlation in near term is too far fetched.
              Mav,

              You are not getting the essence of my post. Have you ever seen my post supporting price increase or advocating it.

              Show me one post unless pasted in comparison debated or asked for where I have been quoting price increase as a value or required facctor.

              My post came in to those who believe AREL does not increase prices as others do and once they attain their margins they are saints.. nothing more than that.

              My reply is nothing more than that showing past examples and the short duration they increased prices. My version of mapelton is different than yours as I have closely monitored it well before launch but do not want to get into a different discussion altogether.

              Comment


              • Re : Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

                From my experience with appaswamy, I have noticed they have a fixed price for a set of flats irrespective of the market price until the inventory is sold. For ex, I was offered flat in saidapet for Rs 4500/sqft with less than 6 months for project completion when other new launches were selling at 6K/sqft, the reason for low pricing was it was the lower 4 floors near the railway track. I dont think they have the habit of pricing it very high and testing the resistance and reducing it later. They have a clear pricing strategy and dont increase or decrease at will like some builders and make a fool of themselves. I do have some reservations on their design, handling and finishing of projects, but credit to them that they have treated everyone be it local/NRI/HNI/Investors etc equally and dont try to please anybody. I feel that can come only if they are fair in the business. This character is only visible with local chennai builders.

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                • Re : Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

                  Mav,

                  You are not getting the essence of my post. Have you ever seen my post supporting price increase or advocating it.

                  Show me one post unless pasted in comparison debated or asked for where I have been quoting price increase as a value or required facctor.
                  Where did I say that you are supporting price increases? Nowhere.

                  Essence of my post is about your attribution of price increase to a color you have chosen to give and believe. Location.

                  Originally posted by srivat
                  Raw material and labour increase is not the only reason they rise the cost for all depends on location and project outlook.
                  Again, Location. Project outlook factors the location at an appropriate weight for each individual. There is more. It also depends on what kind of inventory you have left to be sold and what is the overall preference for them - West facing bedrooms. top floors and many more. When they raised prices as you claimed in a short duration, the kind of inventory they had, could have thrown more little more light. It is hard to get/remember but does influence a lot on pricing.

                  Further, you are ignoring the supply of similar quality offering that can have a huge impact on how I price my least preferred units. Springs did not have a comparable project(location, class, cost, builder trust) in the vicinity for several years around the period. GV had many many more new offerings which gives buyer a plenty of choices to choose from - facing direction, floor choice and more. It is a business call at the end of the day how do you want to price the last 10-15% of the units and knowing how preferred they are - quote higher, haggle, bombard with freebies or keep the same price which in itself an incentive. Mapleton was similar to Springs as it did not have similar class supplies.

                  AREL does raise prices but as a buyer you are not informed ahead of time to get on board - this in itself shows that it is not a gimmickry like other builders and salesman announce ahead of time like a calendar when the next increase is coming.
                  Last edited September 5 2013, 08:39 AM.

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                  • Re : Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

                    I heard in Greenville project, they were even trying to sell space between pillars in basement?
                    Attached Files

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                    • Re : Appaswamy Greensville Appaswamy Builders Sholinganallur Chennai

                      Here is a buyer's reaction:
                      Attached Files

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