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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

    Dear wiseman and others

    Can you tell me what will happen if inflation turns into deflation.

    In what way it will impact RE sector?

    Thanks

    chataara

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

      in mumbai the fall is 35 to 50%

      Comment


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

        Go back to images of the 1930s!

        Originally posted by chataara View Post
        Dear wiseman and others

        Can you tell me what will happen if inflation turns into deflation.

        In what way it will impact RE sector?

        Thanks

        chataara

        Folks,

        All of you have Net connections. Just google "Great Depression" and check out all the personal accounts and pictures of what deflation brings.

        For a while people will enjoy what seems like lower prices. But gradually, production will decline sharply putting millions of people out of work. From fancy houses to cars to dining out and pubbing (and spending/wasting tons of hard-earned money on it), people will focus on daily necessities - cooking at home since eating out is too costly, stitching clothes as readymades are 3 times as expensive, taking the bus, and so on).

        So we will face stagflation. Real incomes will decline substantially. Production will fall steeply. There will be shortages of essential things - already some important medicines have disappeared because the few companies making them find them unviable in the small quantities demanded by the market - imagine losing your life only because the only company making this life-saving drug stopped or went out of business.

        While prices may fall, the income fall will make many of us feel very poor indeed. Added to this is the huge fall in real assets like RE. All of these will have a lasting impact on the psyche of the nation as a whole. Many of you guys have not been around in the 60s and 70s to know the real meaning of what "living on a tight budget" means.

        The 1930s had such a huge impact on American minds that it took 70 years for this memory to fade (most people eho saw that era has passed on) and as memory faded the same mistakes were made to bring the world back to the 1930s situation.

        Hope you question was answered.

        cheers

        Comment


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

          Originally posted by chataara View Post
          Dear wiseman and others

          Can you tell me what will happen if inflation turns into deflation.

          In what way it will impact RE sector?

          Thanks

          chataara
          On collapse of the Tokyo stock market during the early 90's - which also saw the pricking of their property bubble -
          Japan entered a 16 year period of deflation.Even during the world economic boom period of 2004-08 RE prices did not revert to early 90's level.

          I am not saying same will happen in India but downtrend is sure to continue for some more years.
          Last edited March 28 2009, 03:18 PM.

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

            Dear friend,

            I don't think that we will enter into deflation. The inflation may be very low and may be a little above zero.

            ks2071746

            Comment


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

              the biggest change is 'speed'(information)

              Originally posted by wiseman View Post
              Folks,

              All of you have Net connections. Just google "Great Depression" and check out all the personal accounts and pictures of what deflation brings.

              For a while people will enjoy what seems like lower prices. But gradually, production will decline sharply putting millions of people out of work. From fancy houses to cars to dining out and pubbing (and spending/wasting tons of hard-earned money on it), people will focus on daily necessities - cooking at home since eating out is too costly, stitching clothes as readymades are 3 times as expensive, taking the bus, and so on).

              So we will face stagflation. Real incomes will decline substantially. Production will fall steeply. There will be shortages of essential things - already some important medicines have disappeared because the few companies making them find them unviable in the small quantities demanded by the market - imagine losing your life only because the only company making this life-saving drug stopped or went out of business.

              While prices may fall, the income fall will make many of us feel very poor indeed. Added to this is the huge fall in real assets like RE. All of these will have a lasting impact on the psyche of the nation as a whole. Many of you guys have not been around in the 60s and 70s to know the real meaning of what "living on a tight budget" means.

              The 1930s had such a huge impact on American minds that it took 70 years for this memory to fade (most people eho saw that era has passed on) and as memory faded the same mistakes were made to bring the world back to the 1930s situation.

              Hope you question was answered.

              cheers
              wiseman things have changed would be an understatement
              the world has grown smaller and the power of information is so fantastic that every company knows the offtake immediately and is so fast in cutting its costs to reduce inventories.this is the advantage of sub contracting or outsourcing.i know i dont have to go in detail.
              then a company would may be take a few months to even know that sales are falling to low levels.
              globalisation was not in the dictionary then.
              everything from the sanitary napkin to super computers have changed,the way we live has changed.
              i do not think we would go anywhere near the 'great depression"
              If we do God help us all
              Last edited March 28 2009, 04:07 PM.

              Comment


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

                Dear friends,

                Let us not go to depressed mode personally while debating on the deflation or collapse or depression of economy etc.

                ks2071746

                Comment


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

                  Originally posted by abk View Post
                  wiseman things have changed would be an understatement
                  the world has grown smaller and the power of information is so fantastic that every company knows the offtake immediately and is so fast in cutting its costs to reduce inventories.this is the advantage of sub contracting or outsourcing.i know i dont have to go in detail.
                  then a company would may be take a few months to even know that sales are falling to low levels.
                  globalisation was not in the dictionary then.
                  everything from the sanitary napkin to super computers have changed,the way we live has changed.
                  i do not think we would go anywhere near the 'great depression"
                  If we do God help us all

                  All things have changed but greediness of people had not changed a bit.Thats what causes great boom and bust.

                  Comment


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

                    Originally posted by ks2071746 View Post
                    Dear friend,

                    I don't think that we will enter into deflation. The inflation may be very low and may be a little above zero.

                    ks2071746
                    The chances of a depression are, he says, “quite high” – even if that is averted, the recession will last a long time. “Look, we are not going back to where we came from. In that sense it’s going to last for ever.”

                    -from George Soros,Legendery Investor.

                    Comment


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

                      The more things seem to change the more they revert to being the same!

                      Originally posted by abk View Post
                      wiseman things have changed would be an understatement
                      the world has grown smaller and the power of information is so fantastic that every company knows the offtake immediately and is so fast in cutting its costs to reduce inventories.this is the advantage of sub contracting or outsourcing.i know i dont have to go in detail.
                      then a company would may be take a few months to even know that sales are falling to low levels.
                      globalisation was not in the dictionary then.
                      everything from the sanitary napkin to super computers have changed,the way we live has changed.
                      i do not think we would go anywhere near the 'great depression"
                      If we do God help us all
                      Dear abk,

                      If what you say is true, then we should never have had the blow-off boom, the Global slump and so on.

                      Things in the US are following exactly the pattern set by Japan from 1990 onwards. So, the US - which adviced Japan what not to do then, seems to be ignoring its own advice and doing exactly the same.

                      Somehow, the world - while it appears to have changed, speeded up and is more informed - does not seem to have learnt lessons from the past and is repeating mistakes/blunders from the past. At least in this regard, nothing seems to have changed.

                      There is still an increasing possibility that we may see the first Global Depression in modern times!

                      cheers

                      Comment

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