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 Natarajg007

    So flats being bought as an asset is stupidity, land being ACQUIRED as an
    asset is sense.


    Dear Nataraj

    This point makes sense...

    I will never support flat as an asset. Land has many advantages

    thanks

    chataara
    CommentQuote
  • Originally Posted by chataara
    Dear Nataraj

    This point makes sense...

    I will never support flat as an asset. Land has many advantages

    thanks

    chataara


    Dear friend,

    It is that flat also appreciates but at lower rate than plot which appreciate higher. I know of a flat of 850 sq. ft. in Saidpapet bought at Rs. 850/sq. ft. in 1997 is now Rs. Rs. 3600-3700/sq.ft against a new flat at Rs. 4500/sq.ft. i.e., about 20% less per sq. ft. than a new flat. Is this not appreciation though in the case of land it was about Rs. 10 lakhs/2400 sq. ft. then and now it is about Rs. 100 lakhs/2400 sq. ft. a 10 times increase in about 11 years time.

    ks2071746
    CommentQuote
  • Originally Posted by ks2071746
    Dear friend,

    It is that flat also appreciates but at lower rate than plot which appreciate higher. I know of a flat of 850 sq. ft. in Saidpapet bought at Rs. 850/sq. ft. in 1997 is now Rs. Rs. 3600-3700/sq.ft against a new flat at Rs. 4500/sq.ft. i.e., about 20% less per sq. ft. than a new flat. Is this not appreciation though in the case of land it was about Rs. 10 lakhs/2400 sq. ft. then and now it is about Rs. 100 lakhs/2400 sq. ft. a 10 times increase in about 11 years time.

    ks2071746


    Dear friend

    After some 20 or 30 years flat value will not be increasing. In fact you will find difficult to find a buyer for your flat.

    Moreover, If the flat is more than 12 years old most of the banks will not give loan.

    But as far as land is concerned there will not be depreciation. It is always have value

    thanks

    chataara
    CommentQuote
  • Originally Posted by ks2071746
    Dear friend,

    It is that flat also appreciates but at lower rate than plot which appreciate higher. I know of a flat of 850 sq. ft. in Saidpapet bought at Rs. 850/sq. ft. in 1997 is now Rs. Rs. 3600-3700/sq.ft against a new flat at Rs. 4500/sq.ft. i.e., about 20% less per sq. ft. than a new flat. Is this not appreciation though in the case of land it was about Rs. 10 lakhs/2400 sq. ft. then and now it is about Rs. 100 lakhs/2400 sq. ft. a 10 times increase in about 11 years time.

    ks2071746


    But that flat after another 20 years is worth only to be demoloished. Only the UDS land will help
    CommentQuote
  • Originally Posted by abk
    they are the few politicians who also have huge white money(tv channels))

    as i said they would have invested 70% black money and 30%(which is guideline value) from their businesses . now they will sell flats or plots and show huge profits and convert their black into white (off course taxes minus and subject to ability to sell)
    cute idea isn it.
    see one more reason that RE is the best place to park BM


    Dear friend,

    Who says TV channels are white money? They are also to a large extent
    encouragers/creators of BM. But next to only RE .

    ks2071746
    CommentQuote
  • Originally Posted by ks2071746
    Dear friend,

    Who says TV channels are white money? They are also to a large extent
    encouragers/creators of BM. But next to only RE .

    ks2071746


    Dear friend

    I accept your view

    thanks

    chataara
    CommentQuote
  • And the list goes on...

    Trusts (which are mostly unnoticed )
    Schools
    Colleges

    Starting from PRE KG for 25K donation...which increases as one moves to colleges if Engg its 5L; Medical 10-15L (I may be pessimistic with the values)


    The Quality and Value of life is diminishing... with the ever increasing Quantity of Globalised Economy driven LifeStyle :o

    I still dont understand whats holding Chennai RE while Rest of India slowing down to collapsing.....
    CommentQuote
  • Originally Posted by REGuru
    And the list goes on...

    Trusts (which are mostly unnoticed )
    Schools
    Colleges

    Starting from PRE KG for 25K donation...which increases as one moves to colleges if Engg its 5L; Medical 10-15L (I may be pessimistic with the values)


    The Quality and Value of life is diminishing... with the ever increasing Quantity of Globalised Economy driven LifeStyle :o

    I still dont understand whats holding Chennai RE while Rest of India slowing down to collapsing.....


    Who gives medical seat for Rs 10-15 L? Perhaps B.Pharm seat?
    CommentQuote
  • Originally Posted by REGuru


    I still dont understand whats holding Chennai RE while Rest of India slowing down to collapsing.....


    Dear friend

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

    If he gets more price it becomes the rate. And if another seller increases
    the price at his will, and if another unscrupulous buyer falls into his greedy net, third seller becomes more greedy and increases the rate in that area. This is what happened in 2006 and 2007.

    But having watched all these happening the fourth seller even though the peak period is over, is stuck with the peak rate.

    He is not able to digest the downward trend in real estate
    market. He still wants to sell his property at peak rate.

    When the natural necessities like...

    urgent need for money - for marriage, medical expenses,

    partitioning of property due to increase in family members

    (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...

    Thanks

    chataara
    CommentQuote
  • Originally Posted by chataara
    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??
    CommentQuote
  • Let me try ...

    Originally Posted by abk
    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!!! :D)

    cheers
    CommentQuote
  • Originally Posted by abk
    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
    CommentQuote
  • Originally Posted by chataara
    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.
    CommentQuote
  • Originally Posted by abk
    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.com/forum/city-forums/chennai-real-estate/3521-property-price-trends-in-chennai?p=123461&postcount=50#post123461
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  • 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.
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