Hi All,

I was looking for a land (2400 sq.ft) or independant home in Alwarthirunagar or Valasaravakkam area (near Arcot Road) around June of 2008. The brokers quoted from 90L to 1.2C for a independant home in those areas. It was out of my reach. So I thought of waiting for the prices to reduce.

Anyone knows what is the current rate for 1 ground of Land (2400sq.ft) in those areas?

Should I wait for some more time for the prices to reduce? Any comments?

Also just curious to know if this place "Alapakkam" close to Valasaravakkam is a decent area? Any ideas?

Thanks
kvinayag
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  • does someone really have 1C money to buy a land...? Even if we are going to take a home loan, you would still pay around 80K(bare minimum) as EMI. If thats the case, his monthly income should be appr 2L so that he can spend 40% of his income as EMI...out of the total population only <1% might earn around 2L. very strange to find that lot of ppl are able to afford for properties worth for crores of rupees.....
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  • Yes I am also interested to know the price per ground in these area right now. A monthly update from people who have tried buying in these areas can update in this post. This will help us to understand if there is a real downfall of prices.
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  • better wait

    Originally Posted by kvinayag
    Hi All,

    I was looking for a land (2400 sq.ft) or independant home in Alwarthirunagar or Valasaravakkam area (near Arcot Road) around June of 2008. The brokers quoted from 90L to 1.2C for a independant home in those areas. It was out of my reach. So I thought of waiting for the prices to reduce.

    Anyone knows what is the current rate for 1 ground of Land (2400sq.ft) in those areas?

    Should I wait for some more time for the prices to reduce? Any comments?

    Also just curious to know if this place "Alapakkam" close to Valasaravakkam is a decent area? Any ideas?

    Thanks
    kvinayag


    Better wait for atleast another 6 months to judge the downtrend in RE at Chennai as much has not changed there in the prices, which are being held with very less peanut reductions.

    ks2071746
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  • Originally Posted by kvinayag
    Hi All,

    I was looking for a land (2400 sq.ft) or independant home in Alwarthirunagar or Valasaravakkam area (near Arcot Road) around June of 2008. The brokers quoted from 90L to 1.2C for a independant home in those areas. It was out of my reach. So I thought of waiting for the prices to reduce.

    Anyone knows what is the current rate for 1 ground of Land (2400sq.ft) in those areas?

    Should I wait for some more time for the prices to reduce? Any comments?

    Also just curious to know if this place "Alapakkam" close to Valasaravakkam is a decent area? Any ideas?

    Thanks
    kvinayag


    Dear friend

    I have seen freeads paper RE AD. For the last 7 months one person is giving advt to sell his property in virugambakkam. Till today he is not able to sell his plot of 2200 sft with 1800 sft house.
    In june last year he quoted Rs.85lacs, (fixed).

    Now he is quoting Rs.80 lacs (negotiable)

    this is the situation all over chennai.

    No sales for the last 7 or 8 months.

    sellers are going crazy unable to sell their plot.

    So, dont hurry.

    wait. untill it reaches the genuine level

    thanks
    chataara
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  • it is so surprising to see that though RE is getting beat from all corners, Chennai RE prices have not fallen to reasonable prices..Any thoughts on it?
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  • Originally Posted by Maheshk
    it is so surprising to see that though RE is getting beat from all corners, Chennai RE prices have not fallen to reasonable prices..Any thoughts on it?


    I was looking for a land (2400 sq.ft) or independant home in Alwarthirunagar or Valasaravakkam area (near Arcot Road) around June of 2008. The brokers quoted from 90L to 1.2C for a independant home in those areas. It was out of my reach. So I thought of waiting for the prices to reduce.

    Anyone knows what is the current rate for 1 ground of Land (2400sq.ft) in those areas?

    Should I wait for some more time for the prices to reduce? Any comments?

    Also just curious to know if this place "Alapakkam" close to Valasaravakkam is a decent area? Any ideas?

    Thanks
    kvinayag

    Dear friend

    I have seen freeads paper RE AD. For the last 7 months one person is giving advt to sell his property in virugambakkam. Till today he is not able to sell his plot of 2200 sft with 1800 sft house.
    In june last year he quoted Rs.85lacs, (fixed).

    Now he is quoting Rs.80 lacs (negotiable)

    this is the situation all over chennai.

    Dear friend

    I have seen freeads paper RE AD. For the last 7 months one person is giving advt to sell his property in virugambakkam. Till today he is not able to sell his plot of 2200 sft with 1800 sft house.
    In june last year he quoted Rs.85lacs, (fixed).

    Now he is quoting Rs.80 lacs (negotiable)

    this is the situation all over chennai.
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  • Becos the RE developer has earned so much that they can hold the fake appreiciated value. If once start falling then it not stop. If I am correct I can say that they are giving free goodies like car/extra site/Kitchen Mudule as free. But not ready to reduce the price, it will cause panic in the market and will loose the hype :)
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  • prices not coming down

    Originally Posted by Maheshk
    it is so surprising to see that though RE is getting beat from all corners, Chennai RE prices have not fallen to reasonable prices..Any thoughts on it?


    There can be a few reasons for the prices not coming down appreciably:

    01) The land has been bought at high prices.
    02) Locality advantage
    03) The promoter financially strong enough to hold on for the time being or for a few more months.
    04) Supply vs demand in the respective areas.
    05) In some areas, the leading builder in the area taking the lead to see that the prices by any builder is not reduced appreciably. One such area is Tambaram east where, of course a good and quality builder R.......... B..... is not only holding on to the prices with peanut reductions, but making other promoters in the locality also to hold on to the prices.
    06) The reducing interest rates also may contribute to this as the enquiries may be more than before now.

    ks2071746
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  • After 6 months, holding time will be over and fall is expected
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  • Originally Posted by ks2071746
    There can be a few reasons for the prices not coming down appreciably:

    01) The land has been bought at high prices.
    02) Locality advantage
    03) The promoter financially strong enough to hold on for the time being or for a few more months.
    04) Supply vs demand in the respective areas.
    05) In some areas, the leading builder in the area taking the lead to see that the prices by any builder is not reduced appreciably. One such area is Tambaram east where, of course a good and quality builder R.......... B..... is not only holding on to the prices with peanut reductions, but making other promoters in the locality also to hold on to the prices.
    06) The reducing interest rates also may contribute to this as the enquiries may be more than before now.

    ks2071746


    Thanks for the information.

    1. Why should the customers pay high prices just because the greedy promoters had bought the land for high prices. Guys please dont pay the prices for promoters mistake.

    2 . Places in south Madras has locality advantage to OMR IT and Sriperumpattur Manufacturing Zones but they lack infrastructure . Not sure it will be developed in the near future .

    3. Developers cant not sustain for longer time ...Sure that promoters have amassed good fortunes in yesteryears ...Overgrowth has tempted them and they have taken bigger steps/projects on high leverage and now they have to have regular cash flow to meet atleast the interest portion ... Continued non-performance can result in grave danger...

    4. Interest Rates : These foolish promoters/builders dont understand the reality ..The issue is the unrealistic prices charged by promoters .... not the interest rate ....Govt will hike/reduce it due to overall economic conditions.... People will easily understand this ... But some uneducated promoters will never understand ...

    When the entire world has endorsed the slowdown ... still people in India dont accept it ... RE is down worldwide and all other states in India have accepted ....But Chennai ..hahahaha ..they are still in Denial phase ....

    We have to retreat with same formula ...Denial ...

    Pls deny to buy at unrealistic prices ...
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  • Originally Posted by ks2071746
    There can be a few reasons for the prices not coming down appreciably:

    01) The land has been bought at high prices.
    02) Locality advantage
    03) The promoter financially strong enough to hold on for the time being or for a few more months.
    04) Supply vs demand in the respective areas.
    05) In some areas, the leading builder in the area taking the lead to see that the prices by any builder is not reduced appreciably. One such area is Tambaram east where, of course a good and quality builder R.......... B..... is not only holding on to the prices with peanut reductions, but making other promoters in the locality also to hold on to the prices.
    06) The reducing interest rates also may contribute to this as the enquiries may be more than before now.

    ks2071746


    KS , Thanks for the information.

    1. Why should the customers pay high prices just because the greedy promoters had bought the land for high prices. Guys please dont pay the prices for promoters mistake.

    2 . Places in south Madras has locality advantage to OMR IT and Sriperumpattur Manufacturing Zones but they lack infrastructure . Not sure it will be developed in the near future .

    3. Developers cant not sustain for longer time ...Sure that promoters have amassed good fortunes in yesteryears ...Overgrowth has tempted them and they have taken bigger steps/projects on high leverage and now they have to have regular cash flow to meet atleast the interest portion ... Continued non-performance can result in grave danger...

    4. Interest Rates : These foolish promoters/builders dont understand the reality ..The issue is the unrealistic prices charged by promoters .... not the interest rate ....Govt will hike/reduce it due to overall economic conditions.... People will easily understand this ... But some uneducated promoters will never understand ...

    When the entire world has endorsed the slowdown ... still people in India dont accept it ... RE is down worldwide and all other cities in India have accepted ....But Chennai .... they are still in Denial phase ....

    We have to retreat with same formula ...Denial ...

    Pls deny to buy land/apartment at unrealistic prices ... More EMI default houses/apartments will be on sale in the coming days @ throw away prices ......

    BTW ..who is that 'good and quality' builder in Tambaram ? Good and quality builders in India ?
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  • the rate of the flat depends on the cost of land.most of the builders will change their prices according to the land prices.why would builder A hold on to say X/sq ft when land value has decreased and builder B (competitor) can purchase land and quote less than X sq. ft.
    we are in a dog eat dog world and no builder will follow other builders prices. he will sell at a lower price and go on to the next project.the main factor is cost of replenishment.
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  • I totally agree that one of the main reason for RE in chennai not coming down is high land price. But if there are no buyers (which I assume is happening for last six months), defintely land prices should come down. But in reality this can happen only when the buying power of the customer comes down. ie a person earning >40K will still have the buying power and hence will sustain the demand...
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  • Originally Posted by abk
    the rate of the flat depends on the cost of land.most of the builders will change their prices according to the land prices.why would builder A hold on to say X/sq ft when land value has decreased and builder B (competitor) can purchase land and quote less than X sq. ft.
    we are in a dog eat dog world and no builder will follow other builders prices. he will sell at a lower price and go on to the next project.the main factor is cost of replenishment.


    Dear abk,

    Dog eating dog does not happen in Tambaram East area, that too with this builder in the limelight. He is able to make the other builders hold on to the prices till now. How long is a question to be seen. New projects do not come up now. Exisiting projects are getting delyed very much. Under this scenario, this builder, by virtue of his fast and uninterrupted construction progress at his project sites, may be, has so much of money earned so far, may hold on for long. This builder, in any of his projects, even if some flats are not sold, progresses with the construction like any other already sold flats in the project and completes all the flats and keep with him for long periods till a buyer comes and buys at the builders' price. He is not bogged down by the so called downtrend. He holds on with peanut reductions worth not mentioning and also sells his flats. I should accept, his projects are with quality materials and contruction and no compromise made on these. In fact, I took another builder from Chennai, a close relation of mine to one of the projects at differnet stages of construction, and my relative says, the builder referred at Tambaram East, constructs the flats as though they are for his own use with good materials and quality construction.

    ks2071746
    CommentQuote
  • Originally Posted by ks2071746
    Dear abk,

    Dog eating dog does not happen in Tambaram East area, that too with this builder in the limelight. He is able to make the other builders hold on to the prices till now. How long is a question to be seen. New projects do not come up now. Exisiting projects are getting delyed very much. Under this scenario, this builder, by virtue of his fast and uninterrupted construction progress at his project sites, may be, has so much of money earned so far, may hold on for long. This builder, in any of his projects, even if some flats are not sold, progresses with the construction like any other already sold flats in the project and completes all the flats and keep with him for long periods till a buyer comes and buys at the builders' price. He is not bogged down by the so called downtrend. He holds on with peanut reductions worth not mentioning and also sells his flats. I should accept, his projects are with quality materials and contruction and no compromise made on these. In fact, I took another builder from Chennai, a close relation of mine to one of the projects at differnet stages of construction, and my relative says, the builder referred at Tambaram East, constructs the flats as though they are for his own use with good materials and quality construction.

    ks2071746


    i know the builder R y but nobody is following his prices may be it is the land prices are holding so flat prices are up.many of my friends have purchased in east tambaram and i dont see any vast diff in his quality. I am telling this bcoz i visit many proj there as my friend works for a bank in home loan section and he is by qualification a diploma in civil engg.
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