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Are Property Price Going Down Drastically in Chennai?

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Are Property Price Going Down Drastically in Chennai?

Last updated: December 1 2010
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  • Re : Are Property Price Going Down Drastically in Chennai?

    Hope the rates are decreasing in chennai.Any comments....

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    • Re : Are Property Price Going Down Drastically in Chennai?

      Panic situation In Gulf countries

      Some facts about the panic situation In Gulf countries.

      1) There is a panic situation in Gulf countries about the layoffs amongs the expatriates. All major projects are on hold and thousands of labours and engineers recruited for these projects are got terminated.

      2) In a 3 months time traffic in UAE reduced atleast 30 % due to slowdown.

      3) 60 % of the real estate sales in Kerala is from NRI community from GCC.

      4) Recently, sobha developers called me and offering 30% discount for their ready to occupy luxuary flat in bangalore.

      5) Because of high exchange rate most of the people to loans in last 6 months and most of them trapped in the layoffs happed in last 2 months.

      In this panic situation, who will think about to invest 30 lakhs rupees in 1100 sq. ft apartment.

      Now here , we are thinking only about survival.

      Regards,

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      • Re : Are Property Price Going Down Drastically in Chennai?

        Nero fiddled when Rome burned

        Originally posted by BIJUG9 View Post
        Some facts about the panic situation In Gulf countries.

        1) There is a panic situation in Gulf countries about the layoffs amongs the expatriates. All major projects are on hold and thousands of labours and engineers recruited for these projects are got terminated.

        2) In a 3 months time traffic in UAE reduced atleast 30 % due to slowdown.

        3) 60 % of the real estate sales in Kerala is from NRI community from GCC.

        4) Recently, sobha developers called me and offering 30% discount for their ready to occupy luxuary flat in bangalore.

        5) Because of high exchange rate most of the people to loans in last 6 months and most of them trapped in the layoffs happed in last 2 months.

        In this panic situation, who will think about to invest 30 lakhs rupees in 1100 sq. ft apartment.

        Now here , we are thinking only about survival.

        Regards,

        While many people on this forum are slowly - though late - turning around to face reality, some are still in deep denial, like Natraj.

        He would continue to put up such utterly banal and inconsequential stuff like Wiseman's friendly other login is Whattheheck and he talks shit, throwing stones at shit and suchlike nonsense which only panders to issues related to his ego!

        Consider this Nats. With the kind of vocabulary I have demonstrated in the many posts - which I pride myself upon - why would I resort to vocabulary of the kind only the likes of you turn to with such great alacrity?

        Hope you understood that!

        Maybe, if you stopped thinking only about yourself and your twisted logic - which is slowly putting you and your "investments" in deep trouble - and start looking at reality all around the globe - in fact the Gulf was the last bastion of wealth and that too is crumbling - you might still escape with your shirt on your back.

        Meanwhile, for the others, the job-loss winddown scheduled for 2009-10 has started in all seriousness. Besides not taking on big loans and debt, also try to actively get rid of debt asap.

        You can come back in 2012 at maybe half the price, and not double as Nats would have you believe!!!

        cheers

        Comment


        • Re : Are Property Price Going Down Drastically in Chennai?

          Hi,

          What a way to get the year started : 7000 Crore Lie

          With the Satyam Scam haunting the Stock & IT Market, RE will get the burnt finally and get roasted.The Satyam scam has tarnished the Indian IT Image !

          Greedy & Speculative people have killed the goose and tried to get all the golden eggs at once ! End of Indian IT Dream

          Coming to real estate

          Real estate majors are pulling out of most projects and it is feared that the realty market will collapse in six months. Several giants are about to be wiped out. May be the true impact of the crisis will be felt after the Parliamentary elections. Real estate majors are rumoured to be pulling out and putting a stop to most of their ongoing housing projects. The reason is simple. The flats and offices they built are not selling and the consumers and housing loans they banked upon are ending up in default. The whole sector is in turmoil because there are instances where one person has invested in up to six to seven flats in the hope of making a killing by selling them and has now defaulted on the loans he took because the flats are not selling. The middle class dream of sudden riches is now over in India.

          Now the same flats which were going for a crore are available for lakhs and worse is about to come. In six months the market despite the currency flow from banks will come under selling pressure and will also come face to face with the fact that people tried to speculate beyond all imagination in this sector. In this case the market will see the artificial demand generated by speculation vanish and be replaced by simple economic sense. The prices will fall. The boom will end in a bust.
          While in the metros Mercedes, BMW and gold medallions are failing to lure home buyers this season, resulting in a 50 per cent dip in purchases in both premium and mid segments with experts predicting distress sales in six months.

          The high cost of home loans, land acquisitions at high prices, a dip in demand from non-resident Indians and the general liquidity crunch are also compounding the woes of realty majors. In places where realty developers were quoting as much as Rs.4 million/Rs.40 lakhs for mid segment housing which was quite unrealistic. Now, the same flats may see distress sales in the next six months. According to sources in the construction business builders who bought steel at Rs 55 kg are now refusing to honour their payments to suppliers, as the same material is available for Rs 35 kg. Prices of land, cement, steel and flats all are expected to halve very soon. The worst is yet to come. May be the true impact of the crisis will be felt after the Parliamentary elections.

          Adding fuel, the number home loan defaulters are on the rise which will also push the market, if the banks took possession and put for auction.

          2009 - 2010 does not seems to be favorable years going along !

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          • Re : Are Property Price Going Down Drastically in Chennai?

            Yes, there is panic situation in gulf countries due to lay offs.

            Satyam scandal is adding woes.

            Real estate market is going to face further down fall in 2009

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            • Re : Are Property Price Going Down Drastically in Chennai?

              Originally posted by Nataraajg007 View Post
              Yes, there is panic situation in gulf countries due to lay offs.

              Satyam scandal is adding woes.

              Real estate market is going to face further down fall in 2009
              Real fall in RE is going to start now.

              Comment


              • Re : Are Property Price Going Down Drastically in Chennai?

                Originally posted by wiseman View Post
                While many people on this forum are slowly - though late - turning around to face reality, some are still in deep denial, like Natraj.

                cheers

                Hey Wiseman, how are you? Where is our friend Nats? Did u chase him away from this forum with your facts. Anyway good to join this forum with my original user name again. Year 2009, that no one can miss. What a way to start a year with 8000C scam.

                Now all these 1C, 2C, 3C scam will come out and we are going to witness this soon.

                But where did Strongsville go all these days? Whatheheck, who cares?????
                Last edited January 10 2009, 09:37 PM.

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                • Re : Are Property Price Going Down Drastically in Chennai?

                  Magnitude of Impact

                  The big question on survival of Satyam Computer is giving anxious moments not only to its over 50,000 employees but also to over half-a-million people, who would get impacted indirectly if the IT firm does not come out of the trouble, CII President K V Kamath said on Saturday.
                  Kamath said each of over 50,000 Satyam employees supports a family of four.

                  "Every white collar job creates four another jobs. (So) you are talking about anything between half-a- million to a million people, who could directly or indirectly have been impacted by this single event," Kamath said.

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                  • Re : Are Property Price Going Down Drastically in Chennai?

                    Only Half a Million ?

                    Originally posted by test1234 View Post
                    The big question on survival of Satyam Computer is giving anxious moments not only to its over 50,000 employees but also to over half-a-million people, who would get impacted indirectly if the IT firm does not come out of the trouble, CII President K V Kamath said on Saturday. Kamath said each of over 50,000 Satyam employees supports a family of four.
                    So he is talking about the 450 K people who invested in Satyam.

                    What happened to those equity investors who lost their money in 2008 leaving those lost in Satyam in 2009 ?

                    Sensex has lost 55 % of its peak value .

                    I know few of my colleagues who invested to the tune of 10-12 Lacs are reduced to 3-4 Lacs now. And one of those guys wants to construct a house in the land he owns with a budget of 20 Lacs. He is not able to start the construction as he does not even have 5 Lacs in hand though he can save more than 1 Lac a month. He does not want to exit now from market as he will face huge loss(loss of 70 percent because of his portfolio).

                    Only few FIIs invested in 2004-06 had exited with good profit but many investors have lost their money because they entered when the price were high(inflated & artificial) and still hesitating to exit.

                    Am not sure about the number of investors in India. Sure 99 percent of the equity investors would have lost their money . Only few FIIs and savvy investors would have exited at the correct time.

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                    • Re : Are Property Price Going Down Drastically in Chennai?

                      Not entirely correct!

                      Originally posted by test1234 View Post
                      The big question on survival of Satyam Computer is giving anxious moments not only to its over 50,000 employees but also to over half-a-million people, who would get impacted indirectly if the IT firm does not come out of the trouble, CII President K V Kamath said on Saturday.
                      Kamath said each of over 50,000 Satyam employees supports a family of four.

                      "Every white collar job creates four another jobs. (So) you are talking about anything between half-a- million to a million people, who could directly or indirectly have been impacted by this single event," Kamath said.

                      The norm for multiplier effect is around 1:1 or at most 2:1. So, if say 50,000 people lose jobs (I still believe the Satyam saga would probably effect 10000 -15000 actual job losses, because, though Satyam may lose more jobs, other companies may add people to provide the underlying service; therefore it can only be considered a transfer of job from one company to another), then the number of other jobs lost in the support economy (lower paying jobs, mind you) will be another 50000 to 100000. So lets take a midpoint of 75000.

                      So, we will have actual 125000 jobs lost.

                      Assuming a 4:1 ratio of people supported to actual job holders, we may see around half a million people affected.

                      Based on my belief, the actual number of people affected (say 10000 Satyam jobs lost and therefore 25000 total jobs lost) will therefore be 100000 people affected.

                      After all this Math, it is still a tragedy. But in this long winter of the bear market (and it will be loooong), expect more such situations. This market will persist till all optimism is squeezed out and only pessimism prevails. Then - and only then - will the market turn. When only pessimism prevails major assets will have declined to unforeseen levels (say 50% - 80% declines from peak) and supply will be far in excess of demand as most people will not have any financial strength to go in for adventurous loans and highly leveraged plays). Even after turning, it will take a while for the 2007 super-bullishness to return.

                      So, batten down and learn to live in low-cost mode for quite some time to come.

                      cheers
                      Last edited January 11 2009, 01:10 PM.

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