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What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

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What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

Last updated: October 3 2017
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  • #11

    #11

    Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

    Thanks yeskrish. I guess I will have to ditch this deal and look out for other properties in Anna nagar.

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    • #12

      #12

      Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

      Originally posted by omatunto View Post
      I did check the new flat price in Annanagar with Firm and Golden Homes. The current rate is 8500 per sq ft and 10200 per sq ft respectively.
      Dear omatunto,
      Only last week end I had been to a GF flat in the 10th main road and the owner, my friend living in his own 3 bed flat bought at Rs. 1600/sq. ft. 8 years ago, told that the second hand flats in the locality is between Rs. 5000 to 6000 /sq. ft. I also know of a builder who has bought the land and wanted to start his project, thought of Rs. 7000/sq. ft. has now delayed his project as he feels the rates are down now an he may find it difficult to get buyers at Rs. 7000/sq. ft. If any other promoter is quoting like Rs. 8500 or 10000/sq. ft. I can only say they still live in another world not knowing the current RE trend..

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      • #13

        #13

        Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

        Now in August 2017, What is the best resale price per sqft for a 15year old flat on Shanti Colony 50feet wide 9th main road near Anna Adarsh college/school?

        Post buying, buyer ​​​​​​need do the painting, replacement of old Bathroom fittings, some electrical fittings replacement, safety metal grills for main entrance and for two balconies.

        I am Quoted an as is where is asking price of ₹8200/sqft for a 1050 sqft 2BHK with one reserved car parking, UDS 400sqft(38%) and woodwork in two bedrooms & kitchen.

        The location and neighborhood is good, clean (my rating 8/10), construction quality of the building is good (8/10),current condition reasonably maintained with 24x7 security with five CCTV surveillance, lift, borewater purification facility, Metrowater.

        Flat has Good daylight and cross Ventilation. Terrace is clean with thermal coating done. Flat has Vastu compliance. 90% of the all the walls in the flat are independent not sharing with other flat.

        Key advantages are the clean location, good construction quality, good condition, maintenance of the building and the common area is @15% results in enhanced carpet area.

        ​​​​​​​The flat has been under rental for nearly 7years by the same tenant, hence owner hasn't felt the need to get a new coat of paint inside the flat.

        Whole appartment block exterior has got repainted once in 2009 and holds good and next repainting is due by end of 2017.

        Top floor three flats are deviations from original plan but flat owners have already applied and paid the regularisation fees to CMDA and await correction notification, which is a normal practice with 6-20flat standalone building built by small builders in 2002.

        What is your opinion on the price. This flat purchase is for my living.

        New flats in the next street by Pushkar builder is sold@ ₹14K and above which has 25% common area being charged by builder.

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        • #14

          #14

          Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

          May appear reasonably priced. But, 38% (400 sq ft) UDS shows just not a deviation alone; must have some unauthorised apartments to make the UDS so low. Just check what is the FSI allowed for a new building on the same street, you will understand the head room to gain/lose when it comes to redevelopment.

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          • #15

            #15

            Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

            Originally posted by maverick007 View Post
            May appear reasonably priced. But, 38% (400 sq ft) UDS shows just not a deviation alone; must have some unauthorised apartments to make the UDS so low.

            Just check what is the FSI allowed for a new building on the same street, you will understand the head room to gain/lose when it comes to redevelopment.
            Thanks Maverick.

            Yes three flats on top 4th floor is extra and CMDA regularisation being done.

            The 1995 built three floor appartment I currently live in Kodambakkam had its entire middle 2nd floor five flats got regularisation scheme later by CMDA. Hence my 655 sqft 2bhk flat has uds of 320sqft only, 16flats built on 6800sqft land.

            Until 2004 CMDA seems to have given approval for a total of "x " number of kitchens to be built for the builders of Old standalone Appartments and builders used to build extra kitchens and get them regularised by CMDA. Hence deviations from drawings are in every standalone Appartments.

            Entire Chennai flat owners paid for regularisation fees for their flat deviations in Chennai to CMDA await a court order for years.

            The current resale flat Location is good. 14flats built on a 2.5ground land, reserved parallel independently gated 8 feet wide, 17feet length car parking, construction quality is good with entire flat marble flooring.

            Actually I am searching a good resale flat in a good location with Vastu compliance with independent car parking for the past 4years, but invariably each one has the same CMDA deviations, regularisation done later.

            Actually The resale flat price trend after demonitization, and linking of PAN with Income Tax is trending downwards as in 2015 Shanti Colony for a 25year old flat prices were north of 9.5k/sqft, now not many are venturing to buy as investment hence hovering around 8k/sqft.
            ​​​​
            This is the resale flat which ticks most boxes like no garbage bins nearby, no TASMAC shop nearby, wide 40/50feet road, proximity to Metro rail, bus stop, hospitals, school & colleges, super market, park, eateries etc.

            As of today 70% first owners live in the Apartment, 3flats are rented and few owners have grown exponentially and bought independent villas in Annanagar including my Flat owner. Good sentiment too.

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            • #16

              #16

              Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

              For consumption and end use, it is hard to debate. My point on earlier post was - there is not juice left to milk further upon redevelopment. Part of your rightful UDS 15 years ago (if complied) was given away to the other 4 flats. Compliant 15 year old flats usually have 10-20% room left for increased sq footage and it is a potential carrot or margin of safety. Assuming a compliant redevelopment based FSI of 2 will end up with a flat of 1000 sq.ft (new) with 25% loading. That's the only future potential you need to factor which I was driving at. For a 15 year old apartment, paying market value of UDS portion is one benchmark(past) for valuation. You are paying @5Cr/ground. My sense is, it could quote at discount at 20 yr mark and further discount at 25 year mark. If land value keeps up at the past growth rate, discounts may not affect you much as long as you are happy to stay there for next 15 years. For whatever reason, you decide to sell, IRR can shock you.

              Comment

              • #17

                #17

                Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

                Originally posted by maverick007 View Post
                For consumption and end use, it is hard to debate. My point on earlier post was - there is not juice left to milk further upon redevelopment. Part of your rightful UDS 15 years ago (if complied) was given away to the other 4 flats. Compliant 15 year old flats usually have 10-20% room left for increased sq footage and it is a potential carrot or margin of safety. Assuming a compliant redevelopment based FSI of 2 will end up with a flat of 1000 sq.ft (new) with 25% loading. That's the only future potential you need to factor which I was driving at. For a 15 year old apartment, paying market value of UDS portion is one benchmark(past) for valuation. You are paying @5Cr/ground. My sense is, it could quote at discount at 20 yr mark and further discount at 25 year mark. If land value keeps up at the past growth rate, discounts may not affect you much as long as you are happy to stay there for next 15 years. For whatever reason, you decide to sell, IRR can shock you.
                Thanks Maverick.

                I understand 15year old 2002 built Appartments must offer a minimum of 50% Sqft. Now There is not much can be done on UDS. Maximum I can only leverage the low UDS and deviation to negotiate a bit hard on the final sqft price to get some compensation.

                Seller is aware of the downfalling price trend and equally he is aware of the key locational advantage as the flat is hardly 400m walking distance from Annanagar tower metro station & bluestar bus stop.

                Pushkar's New flat has just about 3-35% UDS but the common area is 25%

                Ideally 50% UDD must be around 525 sqft. Missing UDS is about 125sqft. for the missing 120 sqft UDS the value will be 12L.

                Say if I gain 10% discount to bring the final price to ₹7400/sqft that shall offset low UDS. If take 10K/sqft for the UDS (while open land market price @16-20k/sqft)

                Hard negotiation for Gaining a Discount of ₹800/sqft will be * 8.5L along with woodwork it might be worth of ₹10-11L. Which will grow@ 6% in bank FD or I can grow this fund fast in equity stock.

                A 1300 sqft 3bhk resale flat is still hovering above 1.2C just for one additional room/250 sqft extra one has to face the burden of additional 30-40L which is not convincing and availability in a good location is elusive so far.

                Hence I have to accept a 2bhk as a compromise.
                It is for my own use. Perhaps I will use it for 15-20 years. Good location is the key as it is very rare.

                What is your opinion?

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                • #18

                  #18

                  Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

                  I come to understand from my resale flat owner seller who is a business man having few hotels in Chennai and suburbs, Andhra told me that full white money land transaction price for land in Annanagar has fallen from 6Cr/ground to almost half.

                  His Villa in 3rd main road P block built in One ground with 3.5K sqft builtup area has no takers for 4.5C as he wanted to sell and consolidate his properties in Annanagar.

                  Resale Properties of Big value transactions say above 2C are not moving fast. Villas which have value of 4/5C finding difficulty in getting buyer and hence such transactions are now rare.

                  However the seller told me that the flats below 1200sqft/ 2BHK flats are in demand and hence finding enduser buyers.though prices have corrected by say 15-20% from peak prices of 2013/2014.
                  Last edited August 26 2017, 08:03 PM. Reason: Added few more points.

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                  • #19

                    #19

                    Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

                    For consumption, affordability and opportunity cost of missing out should drive the decision. Decision should be beyond numbers. You have done enough and 10% either way do not make a buy a bad buy or a great buy. The owner seems quite-an-aware person unlike many with good exposure in RE generally bury their heads in the sand(denial mode) oblivious to the changing trend or reality. Thanks for sharing. Such on-the-ground reality is what readers need. Not the tarot reading that imminent bull is around the corner and 20% CAGR predictions.

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                    • #20

                      #20

                      Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

                      Originally posted by maverick007 View Post
                      For consumption, affordability and opportunity cost of missing out should drive the decision. Decision should be beyond numbers. You have done enough and 10% either way do not make a buy a bad buy or a great buy. The owner seems quite-an-aware person unlike many with good exposure in RE generally bury their heads in the sand(denial mode) oblivious to the changing trend or reality. Thanks for sharing. Such on-the-ground reality is what readers need. Not the tarot reading that imminent bull is around the corner and 20% CAGR predictions.
                      Thanks Maverick.

                      I have seen over 150 resale properties in Chennai in TNagar, West Mambalam, Ashok Nagar, Saligramam, Vadapalani, Velachery & Annanagar​.

                      I understood it is a very rare luck to get a combination of good location, quality construction, Vastu compliance, proximity to school, colleges, hospital, super market etc along with good price & UDS etc.

                      One has to trade off a economical or feel good factor over majority of factors/convenience a resale property can offer for a rejuvenated, upgraded living.

                      I even tried a good resale property in Bangalore in Malleswaram, Vijayanagar, JPnagar, Jeyanagar, Nagarbhavi, paid 15% advance in 2016 but cancelled due to Bangalore Cauvery riots and unfriendly to Tamils.

                      I had been a silent reader of this forum.

                      Just wanted to put my real time live experience as a purposeful market reference.

                      Surely I Will post the final deal price information in this thread. Should happen in a month.
                      Last edited August 26 2017, 10:12 PM. Reason: Spelling

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