What is the market price for a 15 year old 2BR flat in Anna Nagar, near Blue Star? The flat is in a pretty good shape. What is the per square foot rate I can expect on the UDS?
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  • Still owners of 15years old resale properties having 60% UDS are expecting ₹10500/sqft but not ready to accept trend of price correction with continuous falling prices of their properties.


    There is a saying - life is too short to learn from *our* own mistakes only. These owners need to learn from others' mistakes. Seriously.

    Like the ones who bought for UDS in prime areas(Alwarpet, Nungambakkam) in Chennai (2012-14) are still nursing their wounds. They have learnt the lesson that UDS is not same as a freehold land in Nungambakkam and Alwarpet. Seller often uses that as a benchmark to push his sale - like Mahindra Timeshare uses Resort Per Diem rates to justify. Many fall for it. Then why does Mahindra Club quote at 50% discount on resale? :).

    Do we want to learn from others' mistake or our own - which is more expensive?

    Today, there is still some juice left in freehold land - after 33% GV reduction. Black Ants are still chasing them for sheltering. Poor lemmings are using those prices for anchoring for UDS. Sheer lack of awareness on what is valued in the market. Once the land becomes UDS, it is laundered already to a great extent - why bank on to-be-laundered premium again? Who will give? Unless there is a substantial building rights increase through redevelopment.
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  • Originally Posted by maverick007


    There is a saying - life is too short to learn from *our* own mistakes only. These owners need to learn from others' mistakes. Seriously.

    Like the ones who bought for UDS in prime areas(Alwarpet, Nungambakkam) in Chennai (2012-14) are still nursing their wounds. They have learnt the lesson that UDS is not same as a freehold land in Nungambakkam and Alwarpet. Seller often uses that as a benchmark to push his sale - like Mahindra Timeshare uses Resort Per Diem rates to justify. Many fall for it. Then why does Mahindra Club quote at 50% discount on resale? :).

    Do we want to learn from others' mistake or our own - which is more expensive?

    Today, there is still some juice left in freehold land - after 33% GV reduction. Black Ants are still chasing them for sheltering. Poor lemmings are using those prices for anchoring for UDS. Sheer lack of awareness on what is valued in the market. Once the land becomes UDS, it is laundered already to a great extent - why bank on to-be-laundered premium again? Who will give? Unless there is a substantial building rights increase through redevelopment.


    UDS is a feel good factor in an urban resale property Purchase if the building is in its mid life say 15-20 years old.

    All Resale are not comparable to first TNHB flat resale boom in Annanagar, Ashok Nagar, KK nagar which had great value as those TNHB properties were built in early 80's had high UDS share and with doubled FSI in 2007/13 all individual UDS shares got redeveloped and such bunch of lucky informed buyers got their dilapidated 40years old TNHB flats newly developed into brand new larger flats.

    But in urban areas no body will redevelop a 15year old property as the FSI has not doubled restricting real benefit of a higher UDS share.

    In 2017 Investing with the inflated prices on a 15-20 years old property purely as investment primarily based on higher UDS share and waiting for another 15-20 years makes the investment dead.

    I don't expect a 1100sqft 2BHDK flat will cost 3Cr in the next 15-20years given the down trend of economy.

    AllI expect is that the irrational spurt of indian RE price spike from 2004-2014 decade will get ironed out adjusted/corrected logically in this 2015-2025 decade.

    AnyRE be it land, flat, villa all those which got doubled/tripped in value will see a deep correction in the next 2-3years.

    By2020 chances are there for new flats to be sold at half of today price with FSI enhancement in the pipeline for most Metro cities, Chennai in particular.

    To me next two / three years, It is a wait, check and buy for consumption time for RE.
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  • @harima7619; Your views seem to be on the same page as mine.

    Gave the road map in a post dated Mar 27, 2017 in the other thread 'Busting Real Estate Myths'..

    Apartment prices in prime and hi-growth areas in Chennai

    1990-2002: 2.5 times
    ............
    2002-2010: 4 times

    2010-2017: 0.2-0.4 times

    2002-2025: 6 times

    2025: No free lunch.Don't be a herd and get slaughtered

    PS: Multiples based on the prices seller will realize if he held/holds it during the period.
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  • Originally Posted by maverick007
    @harima7619; Your views seem to be on the same page as mine.

    Gave the road map in a post dated Mar 27, 2017 in the other thread 'Busting Real Estate Myths'..



    Most importantly IT sector jobs/salary fantasy has ended and is in deep turmoil now and IT job uncertainty is bringing young/careless buyers and investors to their senses resulting in much required RE slowdown coupled along with extraordinary greed exhibition by Builders & Govt.

    In the next 2-3 years Slowly & steadily RE market and its price trend will get back to predictable normal linearity rather driven by prices spiking, spurting, and bursting irrationally as in the by gone decade 2004-2016.

    In marketing demand decides price. Demand in market is decided by buyers job stability and tax certainty.

    Demonitization, Black money hunt, consistent Tax chase by Govt, IT job uncertainty will be the factors bringing back normalcy to RE prices to correct and stabilize at reasonable levels which might be giving room for yet another 20-30% deep correction in 6-12months.
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  • I am not so positive about 20-30% correction in 6-12 mos. It would be a time correction with price remaining still and inflation eating it 6-7% a year type. With > 80% of our country assets in RE, broader intelligentsia is guided by sunk cost fallacy. They will not get out till they see the price they paid - they will be so happy getting out 5 years from now at the same price than 20% down at the first year :). Hence no sudden correction and they pride it as the attribute of the RE asset class.
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  • Originally Posted by maverick007
    I am not so positive about 20-30% correction in 6-12 mos. It would be a time correction with price remaining still and inflation eating it 6-7% a year type. With > 80% of our country assets in RE, broader intelligentsia is guided by sunk cost fallacy. They will not get out till they see the price they paid - they will be so happy getting out 5 years from now at the same price than 20% down at the first year :). Hence no sudden correction and they pride it as the attribute of the RE asset class.


    Central Govt's1% TDS for property values above ₹50L and TN Govt's recent 300% increase in registration charges only add costs further as in and around 40kms radius of Chennai it is difficult to find a 1000sqft flat below ₹50L price.

    Purchase Prices of OMR specifically Akshaya Adair at Padur was sold at ₹4500/sqft basic price by builder in 2009/10 but now buyers/investors after spending registration, woodwork done costs, Resale prices in 2017 are ₹4200/sqft negotiable.

    Prices will not be be still, it will fall by some percentage given negative trend causing factors in the next few years.
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  • In RE if you are happy with property & paying equivalent or below current market value, then you should buy.

    no point in considering potential future correction.

    it is a long term investment . It will all wash out in the long run.

    Go for it.
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  • my 2 cents is Cash is the King.so it is always better to liquidate the asset if it is not yielding any better returns then sitting on it hoping it will dramatically increase
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  • Updation
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  • With Grace of God, Registration completed on 28/09/2017,Grihapravesham done on 30/09/2017.Net registered price ₹8K/sqft. Renovation Furnishings₹600/sf
    Photos:
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