Hi

In chennai the prices of plots or even a flat for that matter is going beyond the reach of a common man. Is there any chance for the prices to correct in near future?

With a salary of 15k, it is beyond the capacity of common man to buy a house or flat
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  • Buying a house? Get your basics right - Good Article

    Buying a house? Get your basics right

    http://economictimes.indiatimes.com/quickiearticleshow/3999119.cms

    The content is a must read though it has been told by Wiseman and Friends many months ago.

    Excerpt :

    Lack of buying activity means that the market is skewed towards the buyer at the moment. "You can start quoting a price that seems reasonable to you. Try quoting a price that is 50% less than the highest price of a property in the locality commanded in the past," suggests a financial planner Kartik Jhaveri.
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  • Originally Posted by Nataraajg007
    Seller will quote like that only. We need to bargain. Who will pay Rs 5000 for water logging & mosquitoe bites

    That too, due to IT doom, rental value is coming down



    Still there are people considering at this rate if the locality suits them well. Negotiation cannot bring down the prices from Rs. 5000 to Rs. 3000 range? It may yield hardly less than 5% with good builders, if the project is in advanced stage of construction, the builder having already spent large amount for the land and the construction material at earlier higher prices.
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  • Originally Posted by ks2071746
    Still there are people considering at this rate if the locality suits them well. Negotiation cannot bring down the prices from Rs. 5000 to Rs. 3000 range? It may yield hardly less than 5% with good builders, if the project is in advanced stage of construction, the builder having already spent large amount for the land and the construction material at earlier higher prices.


    Builders would have spent so much money on Land but thats because he had not analysed the market/trend well.

    Why should the buyers pay the price for Builders' mistake ?

    Guys please avoid paying for Builders' mistake there are many projects with Rs 2000/SQFT available in OMR and will be available everywhere in Chennai.

    Cheers.
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  • Originally Posted by ks2071746
    Still there are people considering at this rate if the locality suits them well. Negotiation cannot bring down the prices from Rs. 5000 to Rs. 3000 range? It may yield hardly less than 5% with good builders, if the project is in advanced stage of construction, the builder having already spent large amount for the land and the construction material at earlier higher prices.


    I agree on negotiation not yielding much at this point. At the same time I don't see how the prices can deflate instead of marginally. All we prospective buyers can wait and watch only the prices inflating more :(
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  • Originally Posted by Nataraajg007
    In velachry no new flat should cost more than Rs 3000 per sqft in this down turn eceonomy

    Hey you dont have a roof of your own and post here for WIseman's sake in a id ADVERTENTLY used to defame my id. ANd you talk about prices. BEtter find a better job and scoot. WIseman is in deep trouble with his Robotic company in total shambles! LOL!
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  • Sorry Nats. Poor luck again :). The Endgame is approaching :)

    Originally Posted by Natarajg007
    Hey you dont have a roof of your own and post here for WIseman's sake in a id ADVERTENTLY used to defame my id. ANd you talk about prices. BEtter find a better job and scoot. WIseman is in deep trouble with his Robotic company in total shambles! LOL!



    Nats,

    You not only have a poor judgement of the RE market having bought lots of land in far off swamps with mosquitoes and trying to rip off people by offering tiny pieces of it at extortionist prices - no doubt hoping some sucker will fall for it and rue it for the rest of his/her life.

    You also have not much knowledge of the IT business of the future - calling my company a "Robotics" company (you must make it a habit to read other's stuff more carefully. Its about Pattern Recognition - something you no doubt could not recognise. Besides, my silence is because we just wrapped up 3 large orderss from our first 3 prospects who are all top-of-the-line ITES companies. 3 out of 3 is not bad in this depression, don't you think? :D

    Anyways, lets get back to the topic at hand - RE.

    The latest 3Q results of the RE sectors was DISASTROUS! Profits of DLF down 65%, Unitech down 75%, Sobha down 88%. The list is endless and it sort of vindicates EXACTLY what I wrote about 2-3 months ago. Since the results DLF has climbed down to Rs 134 in the markets - what the market thinks about where they are headed. Most of the big ones will see double digits. The weak ones will even see stock prices in paises.

    The stock market is an extremely accurate indicator of what is coming 6 to 9 months down the line. And it was almost 6 months ago that the RE companies got clobbered more than 90% from their peaks.

    I'm reiterating it again!!! Please read carefully. The endgame has started.

    3Q results was bad. But it was not as bad as 4Q and the rest of 2009/2010 is going to be. Thats because - as Unitech and DLF said - they made some money closing out the prior orders which were all at much higher prices than today. Now they have much lower order positions of old and in addition whatever little orders they are getting are coming in at negligible margins. They also have HUGE inventory at very high prices loaded on debt AND not selling as well. Add the HEAVY debt load on them and many of these companies will sink into oblivion and probably close. At closing time their properties will go into distress and rubbish all this talk about selling lower than cost - tell me, what is the cost of survival? :D

    If any of you have been reading the news, China has just announced that as many as 20 million workers may have lost their jobs so far (and this only includes migrant workers returning to rural areas; not the ones who lost their jobs and remain back in the cities looking for one!). Thats a humongous number even for China. 2 crore people lost jobs and assuming a dependent ratio of 3:1 it means as many as 8 crore people have lost their means of livelihood. It creating significant social unrest in China already. And we have only just begun this depression!!! :(

    I'm mentioning this in the light of the coming job losses that will surely hit India as well. The World Economic Forum is estimating job losses next year as high as 50 million jobs (this implies disappearance of work, not jobs relocated to India - so we will also see very significant losses in all export sectors; especially IT). This coupled with the severe debt load in RE (Unitech 10000 crores, DLF 13000 crores, etc) coupled with severe declines in volumes will result in the next steep fall in RE volumes and prices.

    I'm still targeting 50% - 80% falls especially in outlying areas - as someone said, when you lose your job, how will you go to town when auto fare is 400 bucks? Also areas which saw steep rise will see equally steep falls.

    DLF is already talking 35% declines. As the biggest builder in India, I see that as an extremely pessimistic sign.

    Take care, Nats

    cheers
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  • What is the reason for the sudden rise of builders offering 10L to 18L budget flats in the OMR and outskirts?
    OMR - thats how they call it even if the place is some 50 kms away from the city and they ruthlessly advertise that it will just take 30 minutes to reach the place from Madhya Kailash. Did they forget to mention that it is possible only at 2:00AM?
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  • Originally Posted by gone_mad
    What is the reason for the sudden rise of builders offering 10L to 18L budget flats in the OMR and outskirts?
    OMR - thats how they call it even if the place is some 50 kms away from the city and they ruthlessly advertise that it will just take 30 minutes to reach the place from Madhya Kailash. Did they forget to mention that it is possible only at 2:00AM?


    you have answered your question. they are offering flats at distant places
    where you dont have anything else other than the OMR for company.
    they expected the IT guys with swanky SUVs used to travelling 100 miles to office in US.to discount the distance and lap up the projects with USPs
    like pool,gym,jogging track etc.
    they realised their folly and are trying to exit fast.
    I dont see those kind of prices in chennai proper.
    anyways they are quoting 2250/sq ft now at dugar which is just 25%less than suburb rates.i still dont see value in them.
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  • Originally Posted by wiseman
    Nats,

    You not only have a poor judgement of the RE market having bought lots of land in far off swamps with mosquitoes and trying to rip off people by offering tiny pieces of it at extortionist prices - no doubt hoping some sucker will fall for it and rue it for the rest of his/her life.

    You also have not much knowledge of the IT business of the future - calling my company a "Robotics" company (you must make it a habit to read other's stuff more carefully. Its about Pattern Recognition - something you no doubt could not recognise. Besides, my silence is because we just wrapped up 3 large orderss from our first 3 prospects who are all top-of-the-line ITES companies. 3 out of 3 is not bad in this depression, don't you think? :D

    Anyways, lets get back to the topic at hand - RE.

    The latest 3Q results of the RE sectors was DISASTROUS! Profits of DLF down 65%, Unitech down 75%, Sobha down 88%. The list is endless and it sort of vindicates EXACTLY what I wrote about 2-3 months ago. Since the results DLF has climbed down to Rs 134 in the markets - what the market thinks about where they are headed. Most of the big ones will see double digits. The weak ones will even see stock prices in paises.

    The stock market is an extremely accurate indicator of what is coming 6 to 9 months down the line. And it was almost 6 months ago that the RE companies got clobbered more than 90% from their peaks.

    I'm reiterating it again!!! Please read carefully. The endgame has started.

    3Q results was bad. But it was not as bad as 4Q and the rest of 2009/2010 is going to be. Thats because - as Unitech and DLF said - they made some money closing out the prior orders which were all at much higher prices than today. Now they have much lower order positions of old and in addition whatever little orders they are getting are coming in at negligible margins. They also have HUGE inventory at very high prices loaded on debt AND not selling as well. Add the HEAVY debt load on them and many of these companies will sink into oblivion and probably close. At closing time their properties will go into distress and rubbish all this talk about selling lower than cost - tell me, what is the cost of survival? :D

    If any of you have been reading the news, China has just announced that as many as 20 million workers may have lost their jobs so far (and this only includes migrant workers returning to rural areas; not the ones who lost their jobs and remain back in the cities looking for one!). Thats a humongous number even for China. 2 crore people lost jobs and assuming a dependent ratio of 3:1 it means as many as 8 crore people have lost their means of livelihood. It creating significant social unrest in China already. And we have only just begun this depression!!! :(

    I'm mentioning this in the light of the coming job losses that will surely hit India as well. The World Economic Forum is estimating job losses next year as high as 50 million jobs (this implies disappearance of work, not jobs relocated to India - so we will also see very significant losses in all export sectors; especially IT). This coupled with the severe debt load in RE (Unitech 10000 crores, DLF 13000 crores, etc) coupled with severe declines in volumes will result in the next steep fall in RE volumes and prices.

    I'm still targeting 50% - 80% falls especially in outlying areas - as someone said, when you lose your job, how will you go to town when auto fare is 400 bucks? Also areas which saw steep rise will see equally steep falls.

    DLF is already talking 35% declines. As the biggest builder in India, I see that as an extremely pessimistic sign.

    Take care, Nats

    cheers

    Wisey, Oh ya,,,pattern recognition ... hi fi eh, and who uses pattern recognition .. ooops not robots... only the turing machine called as Wiseman!
    You can tell pattern recognition or AI or neural network or any crap. As far as I know based on what u said, you know not what that is, just that u manage such a company and spend time writing crap here and there. As for your swamp theory I wont want to argue with you. You must be living along the Cooum and must know nothing more than mosquitoes.
    Finally you are talking bearish after the stock market fell, you are yet in SW business and talked of 3 deals from ITES companies when those companies themselves are in deep trouble. I bet you are fuding your accounts very much like Ramalinga Raju and you will need to take care of yourself. Not me.
    I have better business to do and infact this is time to begin a long upride both in stocks and in RE. As for your DLF friends and others. They are like you and Raju. Write incorrect accounts, state fake lands, (u even state fake technology I suspect!... I bet the best pattern you have in your mind is a big zero!) and their prices falling is but natural. However DLF or the rest are not losing money in their investments, their cheating has reduced. So if they tried to make 300% profit in the past, that has reduced to 50%. So Wisey comeon, try to save your company. Sell out and exit. Dont waste your stupid brain in this forum. Your chelas are doing a pretty good job spelling the same gospel of the bears.
    Bye.
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  • Originally Posted by GoccaMacca
    RE prices will drop by 80% if the IT sector is removed from the country. We all will go back to our basic values and India would be a better country.

    Gocca, were u thrown out of your BPO job? Why are you crying about IT and wanting IT to disappear? IT in India started way back in late 70s. In 1980s IIT CS Post grads had jobs in TBL. So what u r talking about is ITES or some BPO jobs.
    In anycase what harm did it do to India's culture? Maybe they let fools like u to write here? LOL
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  • Originally Posted by GoccaMacca
    Nataraj,

    Cool down, read wiseman article above. The proof is there. We will discuss this in a year and see who is right.

    Bashing does not help anyone. Do a clean analysis and you will know what I am talking about.

    We while growing really fast forget family values, Job ethics and value of money too.

    U r asking me to read Wiseman's silly posts, calling them ARTICLES as if they have any sense. As for you and your family values! Dont tell me IT changed family values. I dont believe it. Try to sell your stories to the fellow down the street with two flowers in his ears! Got it GotchaMochaPocha!
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  • Don't say I didn't warn you, Gocca :)

    Originally Posted by Natarajg007
    U r asking me to read Wiseman's silly posts, calling them ARTICLES as if they have any sense. As for you and your family values! Dont tell me IT changed family values. I dont believe it. Try to sell your stories to the fellow down the street with two flowers in his ears! Got it GotchaMochaPocha!



    Gocca,

    If you didn't heed my advice earlier, by now you would have got it.

    This guy defines the extreme-idiot end of the IQ spectrum :D. If ever you need some boost to your own down days relating to intelligence, you just have to read his posts and you will know you are doing alright!!! :D

    I'm not normally this rude, but we do have down days, don't we?

    Coming back to RE, Chennai is still holding up much better than all other cities. One reason could be that the increase in fsi/far by 33% could be camouflaging all declines upto 30% since it acts as a countervailing force.

    Be that as it may, the actions of world economies much bigger than ours means that we too will be dragged down in this whirlpool and suffer as much. It just needs a little time for this thin veneer of surplus we seem to have for the negative-wealth-effect to take hold. Its so very unfortunate that a vast majority of youngsters do not have the experience to help them understand that acting in haste to buy a home at 80 lakhs is due to the temperature of their blood, but the 20 years of serious struggle to pay it off will help cool that temp much faster than normal - if they survive this at all.

    You can only do so much. Then you look towards saving your own skin because thats the only thing left to do.

    We are looking at a decade of severe volatility and turmoil. One analysis sees the bottom of this global bear in 2018-19 with the DOW reaching 1000-1500 nominal (if you include inflation, it is much worse than that).

    Take care

    cheers
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  • Originally Posted by wiseman
    Gocca,

    If you didn't heed my advice earlier, by now you would have got it.

    This guy defines the extreme-idiot end of the IQ spectrum :D. If ever you need some boost to your own down days relating to intelligence, you just have to read his posts and you will know you are doing alright!!! :D

    I'm not normally this rude, but we do have down days, don't we?

    Coming back to RE, Chennai is still holding up much better than all other cities. One reason could be that the increase in fsi/far by 33% could be camouflaging all declines upto 30% since it acts as a countervailing force.

    Be that as it may, the actions of world economies much bigger than ours means that we too will be dragged down in this whirlpool and suffer as much. It just needs a little time for this thin veneer of surplus we seem to have for the negative-wealth-effect to take hold. Its so very unfortunate that a vast majority of youngsters do not have the experience to help them understand that acting in haste to buy a home at 80 lakhs is due to the temperature of their blood, but the 20 years of serious struggle to pay it off will help cool that temp much faster than normal - if they survive this at all.

    You can only do so much. Then you look towards saving your own skin because thats the only thing left to do.

    We are looking at a decade of severe volatility and turmoil. One analysis sees the bottom of this global bear in 2018-19 with the DOW reaching 1000-1500 nominal (if you include inflation, it is much worse than that).

    Take care

    cheers

    Ah Wise one, thy divine idiosy needs not debate. You will predict 2018-19 so accurately in 2009 and can you predict if u will be alive then? Comeon Wisey go and reply my post on your Mylapore stuff. You are talking bullish about Madras since you want to disposer off your silly Chitrakulam street house I understand and yet posturing as a bear.
    Your certainly can rename yourself as CONMAN. I wont disagree on that.
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  • Land prices in anna nagar have dropped from 2.5c per grnd to 1.8 to 2c per grnd.I know this because i was looking to buy a property.but in places like mogappair the seller are quoting 1c per grnd.its ridiculous.
    And also i enquired about projects on OMR quoting 2000/sq.ft,but the location is about 78km from chennai(I m referring to MARG property developers).I dont know whether it is worth buying 78km from chennai.
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  • Originally Posted by arun1288
    Land prices in anna nagar have dropped from 2.5c per grnd to 1.8 to 2c per grnd.I know this because i was looking to buy a property.but in places like mogappair the seller are quoting 1c per grnd.its ridiculous.
    And also i enquired about projects on OMR quoting 2000/sq.ft,but the location is about 78km from chennai(I m referring to MARG property developers).I dont know whether it is worth buying 78km from chennai.

    Actually the problem on this board is we are always talking about disparate things together. Now you are absolutely right about the Marg stuff. It makes no sense to buy something there since it is in the middle of nowhere.
    Mogappair is costly no doubt and in 1989 I used to go all the way from Adayar there and the place was like some thing far far away. However with Madras growth prices there can go up. Now the problem is realestate prices in Chennai are actually not falling, rather it is moving up steadily and once these bears on this board wake up they are going to be left speechless!
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