Dear friends
I used to see Free Ads paper to know the price quotings in RE section.
In june 2008 one person has quoted price for 2200 sq.ft land with 1800 sq.ft building with all amenities Rs.85 lacs. This house is not sold for the last 7 months.In january 2009 1st week he quoted Rs.82 lacs. This week he has quoted Rs.80 lacs.
Moreover, i can see many advertisement repeating for the last 7 months. From this we can know that property sales has come to standstill. And there is considerable price correction. Even though sellers are reducing the price slowly there are not any takers.
Thanks
chataara
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  • Originally Posted by rmagesh75
    i think the prices are falling down. 6 month back you cannt see any property at a price of 30 lakhs (velachery). now you could see in th re portals old as well as new. builders are making flats at prices less than 4k per sft.


    Exactly.

    Prices continue to fall.

    Still big developers are also falling.

    In OMR no takers for flats ranging above Rs 3000 per sqft
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  • And you are the father of the RE Industry?!

    Originally Posted by Natarajg007
    Enough of story telling. We have heard such crap from you for too long. Now tell us why you did not sell out your Mylapore property 8 months or 1 year ago, when you were screaming bear and you are complaining there are no buyers today. Does it not prove that you are just a big mouth farting in this forum with ABSOLUTELY NO IDEA ABOUT RE?


    Nats,

    Who gave you the certificate to talk about others knowledge. Remember, I was buying property with 100% cash when you were still wetting your pants at the wrong time of the day!

    And where is your certificate about your own knowledge of the RE business - except for the swamps outside Chennai? Where you are stuck holding swampland at high prices trying to fob it off to the unwary!

    Grow up, Nats. And stop piddling around on this forum with completely useless comments about others.

    You seem to have a permanent itch in an unprintable location on your body :D. Scratch there, not on this forum.

    Btw, the screaming in shrill tones with filthy language is solely your prerogative, at least that is firmly established. You can certainly claim a PhD in that areas at least.

    Say something useful. Or simply close your trap.

    cheers
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  • Dear friends
    No one can deny about the stagnance of price in RE (except very few for some other reasons).
    Almost all the mediators are fed up with their job nowadays.
    Most of them have turned into some other jobs.
    Knowing very well that they cannot fetch the peak price now, some of them are telling lies about plot prices.
    But it is of no use.
    Certainly those who are in great need of money have to sell their land at frustrated rate.
    thanks
    chataara
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  • Originally Posted by chataara
    Dear friends
    No one can deny about the stagnance of price in RE (except very few for some other reasons).
    Almost all the mediators are fed up with their job nowadays.
    Most of them have turned into some other jobs.
    Knowing very well that they cannot fetch the peak price now, some of them are telling lies about plot prices.
    But it is of no use.
    Certainly those who are in great need of money have to sell their land at frustrated rate.
    thanks
    chataara


    chataara most here have not denied stagnance and even accept a correction in proper chennai and crash at far off places.it is only some people who say everything from tnagar to tambaram will crash.(not correction)
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  • And why not abk?

    Originally Posted by abk
    chataara most here have not denied stagnance and even accept a correction in proper chennai and crash at far off places.it is only some people who say everything from tnagar to tambaram will crash.(not correction)


    Please note exactly what I have said and continue to say. Maybe a notepad and a pen might be useful so that you can refer to it an year or two later and check out that I am at least consistent at what I say ...

    1. Property prices will fall in proportion to their earlier rise from the last bottom, say around 2002. This means, if something has risen 400% from 2002 to 2007, there is a good chance it will go down to 2003 or 2004 prices. So from Rs. 1000 per SFT to Rs.5000 per SFt should well see a decline to Rs.1500-2000. Please note that this is a 60% to 70% fall. And this will happen in the best of locations as they have led the big rise ...

    2. If there is a general crash in the economy, prices will fall from tnagar to tambaram and elsewhere as well. There is no specific God protecting certain areas so they don't fall. Simple economics, if there is some locality which holds up in price, it will attract selling pressure when people making property losses elsewhere will try to recover by selling property in the higher price area. Ultimately, in a general recession all prices will come down, based on logic in point 1.

    As I said, today's news talks about the closest advisor to Brown (UK) is talking about this being the worst depression for the last 100 years. This will continue to have an effect on the UK even 15 years later!!!

    We in India continue to be in denial still. This will take 2-3 years or even more. Don't hold you breath for it to happen in net 6 months lest your face turns blue. But happen it surely will.

    Time will tell. We just have to wait and take such action as we deem fit.

    cheers
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  • Originally Posted by wiseman
    Please note exactly what I have said and continue to say. Maybe a notepad and a pen might be useful so that you can refer to it an year or two later and check out that I am at least consistent at what I say ...

    1. Property prices will fall in proportion to their earlier rise from the last bottom, say around 2002. This means, if something has risen 400% from 2002 to 2007, there is a good chance it will go down to 2003 or 2004 prices. So from Rs. 1000 per SFT to Rs.5000 per SFt should well see a decline to Rs.1500-2000. Please note that this is a 60% to 70% fall. And this will happen in the best of locations as they have led the big rise ...

    2. If there is a general crash in the economy, prices will fall from tnagar to tambaram and elsewhere as well. There is no specific God protecting certain areas so they don't fall. Simple economics, if there is some locality which holds up in price, it will attract selling pressure when people making property losses elsewhere will try to recover by selling property in the higher price area. Ultimately, in a general recession all prices will come down, based on logic in point 1.

    As I said, today's news talks about the closest advisor to Brown (UK) is talking about this being the worst depression for the last 100 years. This will continue to have an effect on the UK even 15 years later!!!

    We in India continue to be in denial still. This will take 2-3 years or even more. Don't hold you breath for it to happen in net 6 months lest your face turns blue. But happen it surely will.

    Time will tell. We just have to wait and take such action as we deem fit.

    cheers


    property prices will fall in proportion only if salaries and employment reach the 2002 levels.see till 1996 the sedans in india were in the price range of 4L -10L now we have luxury cars like lamborgini being mktd and sold in india
    BMW @ audis are not the talk of the town anymore.the purchasing power has increased.and hence only if everything rolls back in time will the RE price go back to those levels.
    then it wouldnt be a problem the worth of your RE would be same in terms of things u could buy from the proceeds of the sale.

    Now dont tell me everything will remain same except RE
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  • Did you know?

    Originally Posted by abk
    property prices will fall in proportion only if salaries and employment reach the 2002 levels.see till 1996 the sedans in india were in the price range of 4L -10L now we have luxury cars like lamborgini being mktd and sold in india
    BMW @ audis are not the talk of the town anymore.the purchasing power has increased.and hence only if everything rolls back in time will the RE price go back to those levels.
    then it wouldnt be a problem the worth of your RE would be same in terms of things u could buy from the proceeds of the sale.

    Now dont tell me everything will remain same except RE



    I have a friend who is the conduit for banks to sell off their repossessed cars - this is a totally opaque pricess and this is why we do not get good pre-owned (used to call it second hand in those days :)) these days except thru the brokers.

    Did you know that the number of siezed cars in the last 12 months has gone up from around 230 (in this lot) to well over a 1000? This number has never been seen before. And guess the cars I saw over there:

    1 - S-Class Merc less that 2 years old. Original price 75 lakhs. Bank willing to give it away for 35 lakhs.
    1 - Montero
    Several C and other class Mercs and BMWs.

    Tons of other 3-box cars which are priced above 10 lakhs.

    Defaults in the car business has crossed 30% and is scaling heights not seen in 2000 recession.

    And this is basically to reset your thinking that the BMWs and Audis are being bought in cash and in a sustainable way. Nope! They are bought with the extreme form of risky behavior - with debt levels reaching anywhere from 50% to 80% of very high salaries. This is the edge of a crumbling precipice and a highly risky position.

    Actually do you know how Accords and cars above ths level are actually sold? Through what is known as the Bullet Scheme (this is a variation of schemes from the US). So, if the car is say 25 lakhs, you don't pay 4 lakhs down and then the rest of a 5-year EMI scheme. This means very large outlays which most people don't have or do not want to put down even at this level.

    So, these sales guys actually presume a re-sale value of say 30% lower after 3 years and only structure the EMI on this money. So, you need to now pay 7.5 lakhs over 36 months (instead of 21 lakhs over 60 months) which is much, much less. Then they ask you to return the car for the then resale value. Looks great, right? And a lot of people fall for this. See what happens when the car sells not for 17.5 lakhs, but instead for say 13 lakhs. Its the buyer who is on the hook to shell out the difference. If the car does not sell at all, then too its the buyer on the hook for continuing payment on loan amount and interest.
    This is killing people now who are walking away from the C-class and Beemers in increasing numbers. This is the real reason for these fancy sales. The belief of a large number of people that they had suddenly become rich due to the wealth effect (of temporary higher salaries).

    Things may look serene on the surface. There is considerable stress under it. Lots of people are living off their reserves to make ends meet, hoping this will end soon. When it does not, then distress selling will start in all seriousness. By then it will be too late as all sellers will come to market at once unable to hold even for weeks or days, leave alone months.

    To exacerbate this, job losses will increase the slope of decline. Watch it unravel with increasing speed and ferocity.

    Don't have to believe me. Lets wait and watch.

    cheers
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  • this post from another thread by abk i think it is relevant here too
    Originally Posted by abk
    Originally Posted by wiseman


    Wiseman my point here is simple if with the US financial institutions in a mess and other crisis the RE has not crashed as you predict by 80% even in US the centre of the crisis.
    then India should have a relatively lesser correction than US in RE and chennai where housing buyers are actual users and less speculators and 'soft launches' like in b'lore and mumbai are not done in chennai,the RE mkt in chennai would not crash to the levels you predict.
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  • Friends,
    Lakhs and lakhs of job are disappearing day by day.
    Banks who have given crores of rupees as loan are today facing grave financial crisis.
    They dont give loan to everybody today. lots of rules laid to get loan.
    I used to get atleast 10 'loan calls' everyday from sales girls. Nowadays not even a single call.
    If this is the case there will not be any demand for RE certainly.
    Thats what we see today in re market.
    I hope It will prevail for another couple of years.
    Thanks
    chataara
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  • Originally Posted by chataara
    Dear friends
    No one can deny about the stagnance of price in RE (except very few for some other reasons).
    Almost all the mediators are fed up with their job nowadays.
    Most of them have turned into some other jobs.
    Knowing very well that they cannot fetch the peak price now, some of them are telling lies about plot prices.
    But it is of no use.
    Certainly those who are in great need of money have to sell their land at frustrated rate.
    thanks
    chataara


    Dear friend,

    It is true.

    ks2071746
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  • Nat, you are not trust worthy....Wiseman ..your name is a good selection...I an scared for Nat's language now
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  • Originally Posted by jinga31
    Nat, you are not trust worthy....Wiseman ..your name is a good selection...I an scared for Nat's language now


    Dear friend,

    But, both Nats and wiseman are people with abundant knoweldge on many subjects.

    ks2071746
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  • But their writing style is quite different.
    ... and their views are always in opposite directions.
    thanks
    chataara
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  • Originally Posted by chataara
    But their writing style is quite different.
    ... and their views are always in opposite directions.
    thanks
    chataara


    Yes .

    Opposite directions.

    One is wiseman and ...
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  • Originally Posted by jinga31
    Nat, you are not trust worthy....Wiseman ..your name is a good selection...I an scared for Nat's language now


    Well it depends on how captive you are. Most of the times, they both come with very good points that we'll ever know / think of.
    At the end of day, It is you with your intuition that has to decide considering various inputs got from people.

    About Nats' language, I could see he is aggressive at times, but if you argue well with valid points, I don't see any problem with him.
    When someone pulls you down with the ladyfolks of the family, it is natural that you'll to sting back.
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