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No Property sales for the last one year in Chennai

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No Property sales for the last one year in Chennai

Last updated: August 17 2009
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  • Re : No Property sales for the last one year in Chennai

    Originally posted by chataara View Post
    Dear friend

    It is easy to tell a higher rate on the part of the seller. Because he is not losing anything.

    (Udhayam theatre property is under sale - reason 53 members of 6 families are share holders of that property. In march this property is going to be auctioned) etc... will gradually bring down the rate of plots.

    Of course it will take long time..

    chataara
    do you remember the price quote of udhayam complex
    Jones Lang Lasalle Meghraj (JLLM) has got the mandate to conduct the sale.
    JLLM has fixed a reserve price of Rs 100 crore for the 23.8 ground
    ya i must say a deep crash do you know anything sold for higher rates chataara.
    4c+ for a gnd and that too a big chunk of land,
    generally bigger pieces command lesser rates.comments natraj,wiseman??

    Comment


    • Re : No Property sales for the last one year in Chennai

      Let me try ...

      Originally posted by abk View Post
      do you remember the price quote of udhayam complex
      Jones Lang Lasalle Meghraj (JLLM) has got the mandate to conduct the sale.
      JLLM has fixed a reserve price of Rs 100 crore for the 23.8 ground
      ya i must say a deep crash do you know anything sold for higher rates chataara.
      4c+ for a gnd and that too a big chunk of land,
      generally bigger pieces command lesser rates.comments natraj,wiseman??

      In the past 1 year (when the peak of property boom made everyone crazy) there were a number of high-profile land sales (or at least attempts at it).

      There are several peculiarities about large, prime property land sales. In bullish times (when everyone is feeling rich and not necessarily being so ) these transactions take on a movie-like fantasy shape. So

      - Large tracts are more amenable to varying kinds of use (large apartment/commercial complexes, mixed use with commercial and residential, entertainment and business centers, malls and mixtures of these options). This gives opportunity for the developers to make a super-premium when renting/selling these out (the grerater fool theory is in full force here)

      - There is an element of gigantic ego on the part of buyers and sellers - rermember the South Bombay residential property that went for around Rs.96000 / SqFt, as also the Jet land deal which Jet is now trying deperately to get out off, as also many of the BKC deals by corporates - which sets apart these transactions as "madness" transactions?

      - There may be an element of money laundering in these schemes (I have heard that some

      So, just because 23 grounds may go for 100 crores (I still think JLLS and the owners are living in fantasy-land on this one today), it does not mean that my 1200 Sq.Ft will go for 2 crores (after all how many options do you have on a 1200 SFt plot!!! )

      cheers

      Comment


      • Re : No Property sales for the last one year in Chennai

        Originally posted by abk View Post
        do you remember the price quote of udhayam complex
        Jones Lang Lasalle Meghraj (JLLM) has got the mandate to conduct the sale.
        JLLM has fixed a reserve price of Rs 100 crore for the 23.8 ground
        ya i must say a deep crash do you know anything sold for higher rates chataara.
        4c+ for a gnd and that too a big chunk of land,
        generally bigger pieces command lesser rates.comments natraj,wiseman??
        Dear friend

        Bigger pieces mean big returns.

        If it is small piece of land and if it lies in narrow lane it will not fetch big money.

        In small plot you cannot build multi storied building.

        But if it is bigger piece like udhayam land - 23 acres
        you are allowed to build multi storied building.

        It is on 100 feet road on one side.

        And it is purely commercial space.

        So naturally its value should be higher.

        If this same land is for sale 2 years ago it would have fetched another 20 to 30 percent extra.

        Thats the point.

        thanks
        chataara

        Comment


        • Re : No Property sales for the last one year in Chennai

          Originally posted by chataara View Post
          Dear friend

          If this same land is for sale 2 years ago it would have fetched another 20 to 30 percent extra.

          Thats the point.

          thanks
          chataara
          where is the point? 'would have sold' is a very definitive statement.
          i can tell you 4c + /gnd is the highest bcoz if i assume 30 % more as you said the land price even taking multistiried FSI of 2.5 would be 4.25c x 130% =5.5c
          and sq ft rate for land alone would be 9200/sq ft add construction cost+ overhead and the huge margin it should have been selling at 15000/sq ft.
          did it chataaara. i know i am weak in maths,well you show me some maths,or should i ask natraj.

          Comment


          • Re : No Property sales for the last one year in Chennai

            Originally posted by abk View Post
            where is the point? 'would have sold' is a very definitive statement.
            i can tell you 4c + /gnd is the highest bcoz if i assume 30 % more as you said the land price even taking multistiried FSI of 2.5 would be 4.25c x 130% =5.5c
            and sq ft rate for land alone would be 9200/sq ft add construction cost+ overhead and the huge margin it should have been selling at 15000/sq ft.
            did it chataaara. i know i am weak in maths,well you show me some maths,or should i ask natraj.
            post moved to another thread.

            https://www.indianrealestateforum.co...=50#post123461
            Last edited February 26 2009, 01:27 AM.

            Comment


            • Re : No Property sales for the last one year in Chennai

              Yes, thats what happened without sense from 2003 - 2008.
              As per your logic Buyer B,C are losers, if they are buying while guideline value still remains the same * 1000/sqft.

              Residential Market Rate should be within 1.5-3 times the guidline value depending on the location, with some exception, otherwise its like stock market. For ex RIL touched 3000+ during the Boom and touched bottom of 950 within the 52wk period.

              Comment


              • Re : No Property sales for the last one year in Chennai

                Originally posted by nabishek View Post
                Hi abk,

                How should FSI be factored in a transaction by the buyer and the seller?

                I shall explain my understanding on how it is done

                Seller

                If a Seller A owns 2400 sqft land where the guideline value is 1000/sqft and market price is 2000/sqft.

                That person would be pegging an asking rate of 1.5(FSI allowed) * 2000/sqft = 3000/sqft.

                If this transaction happens, then the market value becomes 3000/sqft and a new Seller B will use this to peg a new value 4500/sqft and Seller C using the value sold by Seller B would ask 6750/sqft and so on and so forth.

                This spiralling of prices would continue till the prices reach a saturation level..Till there are no buyers for the asking rate.

                Buyer

                So rate/sqft for a 3600 sqft built up and construction charge of 1200/sqft should be

                Buyer of Seller A = 3000/1.5 + 1200 = 2000 + 1200 = 3200/sqft
                Buyer of Seller B = 4500/1.5 + 1200 = 3000 + 1200 = 4200/sqft
                Buyer of Seller C = 6750/1.5 + 1200 = 3000 + 1200 = 5700/sqft

                The Buyer knows that FSI has already been factored in the purchase.

                If the Buyer is a builder,

                Builder who bought of Seller A will conveniently manipulate by not applying FSI on the rate 3000/sqft at which the land was bought, but against the market price in the locality at that time.

                Therefore,If the asking price in the market is 6750/sqft a builder would quote

                6750/1.5 + 1200 = 5700/sqft

                I feel this is one of the major reasons how the price rose by 200-400% in the span of just 3-4 years.

                With your vast knowledge in the sector and having witnessed many transactions and constructions personally.I was hoping you could clarify and explain both the buyers and sellers standpoint.

                Thanks in advance.
                Interesting Nabhishek!! WHy well the Seller of land whose market price is 2000/sqft ask for 1.5 times that price? What is the logic?

                Comment


                • Re : No Property sales for the last one year in Chennai

                  Originally posted by Natarajg007 View Post
                  Interesting Nabhishek!! WHy well the Seller of land whose market price is 2000/sqft ask for 1.5 times that price? What is the logic?
                  Have tried to clarify in the post below

                  https://www.indianrealestateforum.co...=50#post123461
                  Last edited February 26 2009, 01:27 AM.

                  Comment


                  • Re : No Property sales for the last one year in Chennai

                    Originally posted by Nataraajg007 View Post
                    Who gives medical seat for Rs 10-15 L? Perhaps B.Pharm seat?
                    Dear friend

                    In (Kundrathur) Nandambakkam one seller has finally agreed to sell his CMDA appd. plot for just Rs.300. In nearest layout which is promoted by Sairam engg. college they are quoting Rs.895 per sq.ft. (I donot whether they are selling anything at that price there)

                    Why i am telling this is, Its all urgency which makes the seller to sell at desperate rate.

                    thanks

                    chataara

                    Comment


                    • Re : No Property sales for the last one year in Chennai

                      Originally posted by REGuru View Post
                      Yes, thats what happened without sense from 2003 - 2008.
                      As per your logic Buyer B,C are losers, if they are buying while guideline value still remains the same * 1000/sqft.

                      Residential Market Rate should be within 1.5-3 times the guidline value depending on the location, with some exception, otherwise its like stock market. For ex RIL touched 3000+ during the Boom and touched bottom of 950 within the 52wk period.
                      Completely agree with you.

                      1.5 times the guideline value for the market price would be the maximum I would pitch in.

                      The guideline values can be checked using the following url

                      http://www.tnreginet.net/igregn/guideline_value.htm

                      One can compare the 2003 guideline values to the 2007 guideline values to understand the steepness of the increase.
                      Last edited February 26 2009, 05:59 PM.

                      Comment

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