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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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  • #31
    #31

    Re : Are Property Price Going Down Drastically in Chennai?

    Originally posted by Natarajg007 View Post
    Wiseman, I will also love to see you post. Otherwise the price of realestate might actually fall. LOL. U know what, when there are folks talking bearish market never falls.
    As for your brilliance. Why is it that price of a Ramaniyam flat in Seaward road off Tiruvanmiyur by atleast a KM, where Tsunami can strike as it is some 500 odd metres from sea, be priced at 4Crore for 3200 sqft. Is price falling or rising my friend?
    Do answer this tricky question and then keep your name? And dont blame it on wrong info etc. That is just a ruse for you to escape and if you are an escapist, I wont dare fight with you as I will let you escape through your rat hole. ROTFL.
    SO if you are man enough, rather sane enough to call yourself wise then answer this question above.
    PS. There is another villa project on Seaward road. 2500sqft land with 3000sqft building for 4Crores. Do some research and let this board know how wise you are. THanks.
    I think the real estate agents have the liberty to price their property based on their expectations and there is no regulation governing this. The interesting point to note is that, it is only the asking price and not the selling price. We need to wait and see if this will be selling price also in this climate.
    I tend to believe that lots of estate agents are publishing the same asking price and selling it at much negotiated price, 10 to 15% below their peak asking price.
    So, what do we base our analysis on, asking price or selling price?
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    • #32
      #32

      Re : Are Property Price Going Down Drastically in Chennai?

      Originally posted by Natarajg007 View Post
      Wiseman, I will also love to see you post. Otherwise the price of realestate might actually fall. LOL. U know what, when there are folks talking bearish market never falls.
      As for your brilliance. Why is it that price of a Ramaniyam flat in Seaward road off Tiruvanmiyur by atleast a KM, where Tsunami can strike as it is some 500 odd metres from sea, be priced at 4Crore for 3200 sqft. Is price falling or rising my friend?
      Do answer this tricky question and then keep your name? And dont blame it on wrong info etc. That is just a ruse for you to escape and if you are an escapist, I wont dare fight with you as I will let you escape through your rat hole. ROTFL.
      SO if you are man enough, rather sane enough to call yourself wise then answer this question above.
      PS. There is another villa project on Seaward road. 2500sqft land with 3000sqft building for 4Crores. Do some research and let this board know how wise you are. THanks.
      Hello Nataraj,
      Nataraj,

      Brokers can quote any price for their commodities/products. If there's a mad rush to buy those products then we call it boom/excess demand.

      If there's no taker for these products, then as per theory product price should drop and we call it slow/bust/fall in demand. This is simple economics.

      I have been asking $95/hr rate for my consulting work(around 2 lakhs US dollar/year). Does it mean i am making $95/hr? I can demand any rate. At the end of the day, its the client who is deciding what i am supposed to make.

      In RE, its the buyer who would decide the price in the down market. GOTCHA?

      Now tell me, how long have you been waiting to sell your 1.5 ground 70L property? Tell me honestly how many buyers are ready to buy this property? Are they negotiating? If yes, how much?

      Note: In one other RE Forum, he has posted an ad to sell his property in Palavakkam. Price? You guys won't believe. 2.5C per ground
      Last edited November 20 2008, 09:23 PM.
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      • #33
        #33

        Re : Are Property Price Going Down Drastically in Chennai?

        Prices are falling... no buyers...

        Hi,
        I would like to bring it to the forum some of my personal experience in the last few months about Chennai real estate :

        I am working in Bangalore, most of the weekends travelling to Chennai since my family is in Chennai. I met dozens of brokers for the past few months to buy a property around Kolathur, Villivakkam area.

        I could see the property rates are drastically falling.. some of the cases :

        2 months back I visited few properties, after a week’s time I was told the properties were sold recently... But now the same or other broker is calling me saying that land is available for sale ... the buyers backed out..

        If a property is coming for sale, the entire broker community in that area knows about that... because it is not sold by the owner directly. There are few guys (vegetable vendors, rice merchant, provision stores guy, petty shop guy, local politicians, ex-goondas, etc.etc) turned to be real estate business magnets.. they are the Agreement holders. Every ‘so-called’ agreement holder has link with atleast 20 – 30 local brokers (every street there are half a dozen brokers available – all daily wage workers, construction workers, laundry man, workers in shops, those who were earning 2K – 5K per month, all jobless fellows are real estate brokers now). Wherever the property is for sale, it will come to these agreement holders, they will immediately meet the property owner, finalise the price, take 2 – 3 months time, pay between 2 and 5 lakhs as advance, put an agreement.

        Such properties will be published for sale, in websites, news papers and through the local broker community etc. These agreement holders quote the price atleast 10 lakhs more.. they are selling with minimum 5 lakhs profit. When I met some of the owners to discuss about the property, I came to know they are only agreement holders, and I saw everyone is holding dozens of agreements. They are unable to sell these properties for the price they want to sell because of recession. Actually they are holding the properties as agreement holder, and not letting the owners to sell directly.

        Now all these properties are going back to the owners slowly once the agreement period is over and the owners came to know that he put agreement only to sell on higher price, not for purchase.

        By seeing this, property owners started quoting higher price. But I could see some of the advertisements, with reduced prices (upto Rs.10 lakhs reduced) from the initial price, still they didn’t get buyers. You can see various advertisements with “brokers excuse”.

        Some of the property owners don’t even know that their properties are on advertisement. Generally they don’t want others know about their property sale. So they approaches known local brokers.

        The agreement holders and brokers are playing another trick. They are advertising the properties with free websites as owner of the property, quoting highest prices. I called several advertisers, all are agreement holders and brokers. Most of the property advertisements are not the real advertisements, they place these advertisements just to keep the prices high. If you call them within few hours or on the same day, they will say “It is sold, if you want I will give you other properties in that area, but the prices are high. How much area you want and what is your budget?”

        One of my friend, bought a flat (1600 Sft) in 2004 at Indira Nagar, Bangalore. Now he is willing to sell that flat Rs.5 lakhs lesser than the price he purchased, still searching for the buyer.
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        • #34
          #34

          Re : Are Property Price Going Down Drastically in Chennai?

          Originally posted by shyame2 View Post
          I think the real estate agents have the liberty to price their property based on their expectations and there is no regulation governing this. The interesting point to note is that, it is only the asking price and not the selling price. We need to wait and see if this will be selling price also in this climate.
          I tend to believe that lots of estate agents are publishing the same asking price and selling it at much negotiated price, 10 to 15% below their peak asking price.
          So, what do we base our analysis on, asking price or selling price?
          So tell me how do you claim to know the selling price. Are you a broker or atleast did you sell a property recently or worse still buy one of these properties recently at a much lower price than quoted. Just that a bear cartel of people who either cant afford today's prices like Strong (not understanding his limitations!) or people like Wiseman who want to bring down prices at the behest of his NRI patrons or others who are mostly NRI wanting lower prices to buy in with margin like they did 2 years ago; want prices lower cannot mean prices will run down. Now for all of you, please go back in time and look at realestate price in Chennai in 90s. The peak was in 1996 not in 1994 when stock market was at its peak.
          In essence, stock market money is used to finance the RE boom. These bear talkers on this board have a vested interest in buying at rock bottom, and so want RE to fall. No more.
          Give Wiseman 2 years time and he will talk super bullish when the prices are 2 to 4 times today's prices because that will be when he will be off loading.
          DONT TRUST THE BEAR TALKERS ON THIS BOARD. THEY HAVE VESTED INTERESTS.
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          • #35
            #35

            Re : Are Property Price Going Down Drastically in Chennai?

            Hi Mr Ram(Wiseman) & Mr Natraj Greetings !

            Dear Brothers

            Please make a healthy conversation

            both of you are correct

            RE prices will come down NOW, But

            in the near future will go up

            i dont know too much about analysis/statistics to present, but it is logic.

            wish you all happiness

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            • #36
              #36

              Re : Are Property Price Going Down Drastically in Chennai?

              In this forum there is many Real estate agent too. Even some of them trying to advertise there product.
              But I believe that we sould be away from them. Becos of them only every where the price has been shoot up to the sky.
              And please be aware of the Media. Now the -Ve marketing is going on through the all channel. They are trying to fool to the customer saying that the price has been stabilised. But it is not actually. So use your own mind and brain.
              Either land or AIR and FOOD. Choice is yours.
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              • #37
                #37

                Re : Are Property Price Going Down Drastically in Chennai?

                Much against the banterings of many bear soothsayers on this board, this is a cut and paste from an article from propertyheadlines@************.
                ""Decrease in Residential Property Prices By 5%
                With the ongoing slowdown in the Indian real estate industry and correction in secondary markets, some of the major cities have witnessed up to 5 per cent fall in capital values in residential properties, a Cushman & Wakefield (C&W) report said. According to the report, the high - end residential market of Pune has seen a decrease of 5 per cent in capital values during July-September period, while it fell by 1 per cent in the mid-range category. Other prominent markets, like Mumbai and Bangalore, witnessed a fall of 4% and 3% respectively in the mid-range housing sector, it added. However, a few locations in Chennai have witnessed appreciation in capital values by up to 8 per cent. "Most markets are predicted to continue to have stable capital values with a softening bias in the last quarter of 2008, with the exception of Chennai which may see some further strengthening in key micro markets. A lacklustre festive season, along with sharp drop in the stock markets have further aggravated the situation for developers, who are also battling conditions such as high rates of servicing debt and liquidity issues," C&W India Director (Residential Services), Ms Aditi Vijayakar said. Such conditions have led many developers to re-align their strategies and several developers may be now looking at targeting the middle-income groups, where the demand is high and mostly driven by end-users, she added.
                4 Nov 2008 indianrealtynews.com

                I hope you all understand the intended audience namely weak hands that is being targetted by the bear cartel in this board.
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                • #38
                  #38

                  Re : Are Property Price Going Down Drastically in Chennai?

                  I hope the above clarifies that prices have actually gone up in Chennai and folks who are talking about a fall are hallucinating at best if not lying blatantly to fool weak hands to sell out. Again note these lines from the original article in propertyheadlines@************.
                  "However, a few locations in Chennai have witnessed appreciation in capital values by up to 8 per cent. "Most markets are predicted to continue to have stable capital values with a softening bias in the last quarter of 2008, with the exception of Chennai which may see some further strengthening in key micro markets.
                  Ofcourse some on this board will scream stating that that is a marketing view of somebody. Think about the guy who said that the price I quoted being asked in Seaward road was the asking price and not selling price. Such a person can have the temerity to say anything.
                  Beware there is an NRI cartel that has VESTED INTEREST in the reduction of property prices in Chennai and will fool you serious buyers of property in Chennai. Even in Bangalore where I live property prices have stabilised and are even looking up at certain quarters. The price in AECS layout near Whitefield which was 200psft in 2000, 620psft in 2002 Dec, 3500psft six months back is being quoted at 4000psft to 4500psft.
                  Dont be fooled to sell out your property by these bear soothsayers.
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                  • #39
                    #39

                    Re : Are Property Price Going Down Drastically in Chennai?

                    What do you expect from a person whose salary depends on talking up the market?

                    Folks,

                    This is a stroke of luck for me.

                    The last quoted price in my area (and this is first-hand information since a relation sold property to DLF in that area) in 2007 was above Rs 15000 for prime land in my area.

                    So, I'm going to throw the challenge to this Aditi Vijaykar of Cushman. Will he take this property and sell it for Rs 16200 since that is 8% above the last quoted price for property in this area?

                    In fact I would be so interested in this price that I will give them 7.5% as commission (Rs 1200) since I'm satisfied with my 15000 !!!

                    I think Ms. Aditi will learn to be more cautious at the end of this exchange .

                    And I will let you know the rersult of this exchange, I promise. Unlike people who simply cut-n-paste from Industry shills who can only talk things up.

                    And people, definitely don't be a greater fool to buy property for 70L in Urapakkam when others on the same 99Acres are selling similar property for 17L!

                    cheers
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                    • #40
                      #40

                      Re : Are Property Price Going Down Drastically in Chennai?

                      Originally posted by wiseman View Post
                      Folks,

                      This is a stroke of luck for me.

                      The last quoted price in my area (and this is first-hand information since a relation sold property to DLF in that area) in 2007 was above Rs 15000 for prime land in my area.

                      So, I'm going to throw the challenge to this Aditi Vijaykar of Cushman. Will he take this property and sell it for Rs 16200 since that is 8% above the last quoted price for property in this area?

                      In fact I would be so interested in this price that I will give them 7.5% as commission (Rs 1200) since I'm satisfied with my 15000 !!!

                      I think Ms. Aditi will learn to be more cautious at the end of this exchange .

                      And I will let you know the rersult of this exchange, I promise. Unlike people who simply cut-n-paste from Industry shills who can only talk things up.

                      And people, definitely don't be a greater fool to buy property for 70L in Urapakkam when others on the same 99Acres are selling similar property for 17L!

                      cheers
                      Comeon be more sportive. Tell us the area and then the price. Dont try to shoot your ownself from your back!
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