Friends,

The peak time for Chennai Real estate in chennai is over.

If chennai RE is at peak anyone can sell their property in no time.
In 2007 everyone was running after land. It was like getting 'sundal' at vinayagar temple.
Banks also gave loan like giving 'sundal' at temples. Now banks are not able to get back the loan amount.
They dont know for sure the amount of non performing loans.
Banks are in denial mode in giving loans. Not only that. people also are not in loan buying mood.
They have lost their confidence about repaying the loans.
Those who have accumulated black money dont want to invest in 'non performing' properties.
Because of various reasons like these, peak time for Real estate in chennai is over.

Everywhere owners are telling rate at their will. Its like telling "Ayiram... rendayiram... naalayiram....".
Those who realised the facts are gradually reducing the price. But in most of the cases, plots are lying unsold.

If one is willing to sell a plot, and if there are many buyers we can say there is demand.
If there is demand from many sides, there will be price escalation.
But no demand... No increment in price. But rebate sale has started without buyers.
thanks
chataara

chataara
Read more
Reply
277 Replies
Sort by :Filter by :
  • Originally Posted by Nataraajg007
    Today's news is TCS chennai has fired some 200 people.

    Out of these atleast 50 have take housing loans and would want to sell their house at lower cost to avoid further loss..


    'some' 200 --'atleast ' 50 ---'would want'

    very conclusive statements natraaaaaj.

    as always.;)
    CommentQuote
  • TCS likely to lay off 1,300 staffers in the coming Months !

    Wages at IT multinationals start melting down
    CommentQuote
  • Dear friend,

    True. The wages either remain stagnant with minimum increases or even coming down by way of nil variable or reduced vartiable pay. But, those getting fired are comparitively new chaps who joined within 2 years period and most of them would not have gone for house purchase or loans. Even those who have gone for loans, for cotsly flats, may only, unable to manage the large repayment, may come in for sale now and not the ones who have gone in for medium or low budget flats/houses in the range of Rs. 15 to 25 lakhs etc. They may somehow manage out of the earnings of both the husband & wife or parents help etc. Whereas, high value flat ers like Rs. 35 lakhs plus may be the sufferers.

    ks2071746
    CommentQuote
  • Let us look at the bigger picture now ...

    Originally Posted by REGuru
    TCS likely to lay off 1,300 staffers in the coming Months !

    Wages at IT multinationals start melting down



    Let us now turn the camera to the bigger picture. Turning Nats own words upon himself, forget IT/ITES. Today the news is that around half a million - thats 500000 - jobs have been lost in the last 3 months alone!!!

    How many of those job holders do you think were on an EMI they could barely afford in some exorbitantly priced home?

    And this slop is only getting steeper. So, you could probably expect that - assuming around 20% of those were holding EMIs and around 25% of the ones holding EMIs are getting into distress, then around 25000 homes are in distress.

    Assuming the same trend for the year 2009 (neither worse nor better) you can expect (following this argument) around 100000 homes will be in distress. With the current oversupply, add this excess supply coming to market in distress and here are 2 things I expect to happen:

    1. Home prices will fall by at least the same amount as last year. If last year there was a 15% - 25% fall, this year you will find it falling an additional 15% - 25%. So by end-2009 you can expect anywhere from 30% to 50% from 2007 peak - not doing any inflation adjustments here.

    2. At least a few builders of the medium size will go bankrupt as they cannot support their debt load. I expect even a bigger one can go bust at this rate. This will add the the supply of distressed properties coming to market.

    Another factor we cannot now calculate - but will surely have an impact - is the one where NRIs/Indian Americans who already have loans may also be getting into distress as they lose jobs and their ability to pay. What would be the effect of this on our supply?

    cheers
    CommentQuote
  • Originally Posted by abk
    'some' 200 --'atleast ' 50 ---'would want'

    very conclusive statements natraaaaaj.

    as always.;)


    ABK,

    Whether you like or not, good % of IT guys shown the door have taken loans and they are in trouble.

    Probabily you might have been hit. That is why you are in denial phase
    CommentQuote
  • Originally Posted by Nataraajg007
    ABK,

    Whether you like or not, good % of IT guys shown the door have taken loans and they are in trouble.

    Probabily you might have been hit. That is why you are in denial phase



    Dear friend

    If you watch newspaper closely you will come to know that lot of

    properties are under auction sale because of defaulters in RE sector.

    In the coming months this trend will increase. The more and more auctions, the lesser price ers will quote.

    thanks

    chataara
    CommentQuote
  • Dear friends

    Today In virugambakkam Arcot Road I saw a black board in front of a brokers office.

    He has written some 6 or 7 properties for sale. One among them was about indira nagar (virugambakkam).

    There 600 sft land with building that broken has written Rs. 16 as the quoted price.

    When it was peak time in and around virugambakkam they were quoting around Rs.25L for 600 sft. without house.

    thanks

    chataara
    CommentQuote
  • Originally Posted by chataara
    Dear friends

    Today In virugambakkam Arcot Road I saw a black board in front of a brokers office.

    He has written some 6 or 7 properties for sale. One among them was about indira nagar (virugambakkam).

    There 600 sft land with building that broken has written Rs. 16 as the quoted price.

    When it was peak time in and around virugambakkam they were quoting around Rs.25L for 600 sft. without house.

    thanks

    chataara


    you cannot get approval for 600 sq ft.it was never sellable easily peak or slump. it is a waste piece of land and still being quoted 16 l i.e 64l/gnd

    where is the fall.
    CommentQuote
  • Originally Posted by abk
    you cannot get approval for 600 sq ft.it was never sellable easily peak or slump. it is a waste piece of land and still being quoted 16 l i.e 64l/gnd

    where is the fall.


    Chatara has clearly stated prices have come dowm from 25 L to 16L. If this is not a fall, then what is a fall.

    By the way there are thousands of houses in chennai which are built in 600 sqft. If you demolish all, the half of chennai wil go
    CommentQuote
  • Originally Posted by chataara
    Friends,

    The peak time for Chennai Real estate in chennai is over.

    If chennai RE is at peak anyone can sell their property in no time.
    In 2007 everyone was running after land. It was like getting 'sundal' at vinayagar temple.
    Banks also gave loan like giving 'sundal' at temples. Now banks are not able to get back the loan amount.
    They dont know for sure the amount of non performing loans.
    Banks are in denial mode in giving loans. Not only that. people also are not in loan ing mood.
    They have lost their confidence about repaying the loans.
    Those who have accumulated black money dont want to invest in 'non performing' properties.
    Because of various reasons like these, peak time for Real estate in chennai is over.

    Everywhere owners are telling rate at their will. Its like telling "Ayiram... rendayiram... naalayiram....".
    Those who realised the facts are gradually reducing the price. But in most of the cases, plots are lying unsold.

    If one is willing to sell a plot, and if there are many ers we can say there is demand.
    If there is demand from many sides, there will be price escalation.
    But no demand... No increment in price. But rebate sale has started without ers.
    thanks
    chataara

    chataara


    Dear friend,

    Nothing is peak or bottom and these are dynamic. Peaks will bottom down and bottoms will peak up in the course of time. Ups and downs are necessities in life and so also in every field except one's age which only can increase and no decrease. A peak now may not be the peak for ever and so also is the case of bottom. New peaks will come so also the bottoms. If one locates a dream flat of his, today is also not a bad day to hard negotiate and decide, particularly for his own use.

    ks2071746:p
    CommentQuote
  • with awareness, unapprovable lands are no more in demand

    Originally Posted by Nataraajg007
    Chatara has clearly stated prices have come dowm from 25 L to 16L. If this is not a fall, then what is a fall.

    By the way there are thousands of houses in chennai which are built in 600 sqft. If you demolish all, the half of chennai wil go


    houses built before certain period are considered as approved. over these years there never was a problem with deviation and all used to deviate withou a care. the scenario now is different in case you want to build a new house in 600 sq ft you wont get approval and hence a loan and always the sword of damoc... hanging never know when the electricity and metro water will pull your connection.its a waste piece of land . get it. if somebody bought
    at 25 L then, must be a fool.

    discuss prices of good lands not unapproved and poromboke lands.

    and as per chataara their were six listings and only this was showing a fall what about the others? if they had been quoting lesser prices chataara would have defn. posted it before.
    CommentQuote
  • Originally Posted by abk
    you cannot get approval for 600 sq ft.it was never sellable easily peak or slump. it is a waste piece of land and still being quoted 16 l i.e 64l/gnd

    where is the fall.


    Dear friend

    this the quoted price. Not the final price.

    Moreover, I have not seen any broker writing the rate on the blackboard to entice the b uyer.

    This shows the urgency and stagnancy of the lands in and around chennai.

    thanks

    chataara
    CommentQuote
  • Originally Posted by Nataraajg007
    Chatara has clearly stated prices have come dowm from 25 L to 16L. If this is not a fall, then what is a fall.

    By the way there are thousands of houses in chennai which are built in 600 sqft. If you demolish all, the half of chennai wil go


    Dear friend

    Probably Mr. ABK may be living in some other land outside of chennai.

    majority of chennai residents are living in smaller houses only. This is the fact. You can realise this if U see with plain eyes without wearing any dark specs.

    Thanks

    chataara
    CommentQuote
  • Originally Posted by abk
    houses built before certain period are considered as approved. over these years there never was a problem with deviation and all used to deviate withou a care. the scenario now is different in case you want to build a new house in 600 sq ft you wont get approval and hence a loan and always the sword of damoc... hanging never know when the electricity and metro water will pull your connection.its a waste piece of land . get it. if somebody bought
    at 25 L then, must be a fool.

    discuss prices of good lands not unapproved and poromboke lands.

    and as per chataara their were six listings and only this was showing a fall what about the others? if they had been quoting lesser prices chataara would have defn. posted it before.



    Dear friend

    I was just waiting for the signal when I noticed this. I could not read all the details fully.

    If you go that side U can see the black board while coming from porur towards vadapalani. This shop is leftside

    thanks

    chataara
    CommentQuote
  • Originally Posted by chataara
    Dear friend

    this the quoted price. Not the final price.

    Moreover, I have not seen any broker writing the rate on the blackboard to entice the b uyer.

    This shows the urgency and stagnancy of the lands in and around chennai.

    thanks

    chataara


    stagnancy and correction are there it is the 'crash'( you tomtom so much about) i am searching for.
    help me end my search. show me the crash in chennai.i am not in denial mode i am on 'lookout' mode.
    and i appreciate your comprehension about a black board being used to advertise as a harbinger of the crash.(i thought there was something called creativity/ingenuity/idiosyncracy or plain common sense-obviously you dont agree any of these to be a reason for the black board)
    CommentQuote