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Property Price Trends in Chennai

Last updated: July 14 2020
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  • #91

    #91

    Re : Property Price Trends in Chennai

    Originally posted by chataara View Post
    Dear friend

    If you happen to speak to a mediator personally, he will tell explain how plots and flats are lying unsold in all places. S ellers keep telling the fancy rate for the last one year. But when they are in urgency they have to give in.

    Wait and watch..

    thanks

    chataara
    Dear Friend,

    Builders are not only quoting fancy rates for the last one year, they have steadily increased it and are quoting 30% more than what they had quoted last year.

    To give an idea, in late 2007 a flat in shastri nagar, adyar was quoted 7500/sqft at 60% construction completed stage.Now the same flat is still unsold, ready to move in and is being quoted 10000/sqft.On negotiating one can get it at 8500-9000/sqft.

    If purchased at 8500/sqft,One can claim they have got 25% discount from the builder, but in reality its 20% profit over 2007 rate.

    The builder seems to be in no urgency to close the deal fast.

    The lethargic attitude may be because the builder has already booked profit from the sale of the first few flats. hence, whenever and whatever price the flat is sold its only a profit.

    Some invisible powerful hand is holding up the prices and discouraging builders from selling below or even quoting below the market price.

    Whether its the builders cartel, politicians, black money?its not clear.But surely, it isnt only Demand...

    Chennai RE is truly baffling.
    Last edited March 14 2009, 03:09 PM.

    Comment

    • #92

      #92

      Re : Property Price Trends in Chennai

      Alliance Orchid

      Dear friends,

      In December first week (10.12.2008), the rate of Alliance Orchid Springs is 2999/Sq.ft. Now they increased to 3199/.

      Why they increased..?

      Comment

      • #93

        #93

        Re : Property Price Trends in Chennai

        Originally posted by ksmraj View Post
        Dear friends,

        In December first week (10.12.2008), the rate of Alliance Orchid Springs is 2999/Sq.ft. Now they increased to 3199/.

        Why they increased..?
        That is the advertised price.

        If you approach him directly they will give less than 2999 as the demands are less

        Comment

        • #94

          #94

          Re : Property Price Trends in Chennai

          Originally posted by nabishek View Post
          Dear Friend,

          Builders are not only quoting fancy rates for the last one year, they have steadily increased it and are quoting 30% more than what they had quoted last year.

          To give an idea, in late 2007 a flat in shastri nagar, adyar was quoted 7500/sqft at 60% construction completed stage.Now the same flat is still unsold, ready to move in and is being quoted 10000/sqft.On negotiating one can get it at 8500-9000/sqft.

          If purchased at 8500/sqft,One can claim they have got 25% discount from the builder, but in reality its 20% profit over 2007 rate.

          The builder seems to be in no urgency to close the deal fast.

          The lethargic attitude may be because the builder has already booked profit from the sale of the first few flats. hence, whenever and whatever price the flat is sold its only a profit.

          Some invisible powerful hand is holding up the prices and discouraging builders from selling below or even quoting below the market price.

          Whether its the builders cartel, politicians, black money?its not clear.But surely, it isnt only Demand...

          Chennai RE is truly baffling.
          demand does dictate price but their is one more factor like rarity/scarcity/unavailability.

          for eg platinium commands a price as high as gold(higher before),the demand and liquidity do not match or even come near gold but the rate is equal to that of gold. even without ers platinium still holds the price.

          similair is the case of RE in chennai(proper). other than flats you dont come across more than a few properties for sale in a location(discounting the fact that very few would be a distress sale).
          as somebody said land prices(not flats) are still lesser in chennai compared to the 3 metros and ers from those places acquire RE in chennai at great prices(to them it is cheap compared to Delhi,Bombay,Bangalore etc)

          RE is truly baffling
          Last edited March 15 2009, 02:32 PM.

          Comment

          • #95

            #95

            Re : Property Price Trends in Chennai

            Originally posted by sundardj View Post
            I disagree with Nataraj that the upmarket prices would continue to remain this way. Just wait and see, the pricess in Bangalore has fallen in upmarket areas. It is a question time before it happens in Madras. It is simply untenable to hold on to this price for long.
            In which upmarket area in Bangalore has price fallen? Dont just sell air!

            Comment

            • #96

              #96

              Re : Property Price Trends in Chennai

              Originally posted by abk View Post
              demand does dictate price but their is one more factor like rarity/scarcity/unavailability.

              for eg platinium commands a price as high as gold(higher before),the demand and liquidity do not match or even come near gold but the rate is equal to that of gold. even without ers platinium still holds the price.

              similair is the case of RE in chennai(proper). other than flats you dont come across more than a few properties for sale in a location(discounting the fact that very few would be a distress sale).
              as somebody said land prices(not flats) are still lesser in chennai compared to the 3 metros and ers from those places acquire RE in chennai at great prices(to them it is cheap compared to Delhi,Bombay,Bangalore etc)

              RE is truly baffling
              I am the one who said that price of land in Chennai is yet cheap and that is the reason that prices JUST WONT FALL in Chennai. Infact if outsiders start trickling in more into chennai then prices will actually shoot up.

              Comment

              • #97

                #97

                Re : Property Price Trends in Chennai

                Originally posted by nabishek View Post
                Dear Friend,

                Builders are not only quoting fancy rates for the last one year, they have steadily increased it and are quoting 30% more than what they had quoted last year.

                To give an idea, in late 2007 a flat in shastri nagar, adyar was quoted 7500/sqft at 60% construction completed stage.Now the same flat is still unsold, ready to move in and is being quoted 10000/sqft.On negotiating one can get it at 8500-9000/sqft.

                If purchased at 8500/sqft,One can claim they have got 25% discount from the builder, but in reality its 20% profit over 2007 rate.

                The builder seems to be in no urgency to close the deal fast.

                The lethargic attitude may be because the builder has already booked profit from the sale of the first few flats. hence, whenever and whatever price the flat is sold its only a profit.

                Some invisible powerful hand is holding up the prices and discouraging builders from selling below or even quoting below the market price.

                Whether its the builders cartel, politicians, black money?its not clear.But surely, it isnt only Demand...

                Chennai RE is truly baffling.
                Chennai RE is baffling eh? Great! Think of it. In SIS Safaa down GST road in Urapakkam almost 40km from Mount Road price of a flat is Rs 3500/sqft. Then in Adayar the price should be 35000 psft and at 10K psft it is so cheap. Only a congenital idiot will ever sell it cheaper than that and I dont think Chennai BUilders are so stupid yet!
                Ofcourse Congenital idiots of B U Yers exist and SIS Safaa!

                Comment

                • #98

                  #98

                  Re : Property Price Trends in Chennai

                  Originally posted by abk View Post
                  demand does dictate price but their is one more factor like rarity/scarcity/unavailability.

                  for eg platinium commands a price as high as gold(higher before),the demand and liquidity do not match or even come near gold but the rate is equal to that of gold. even without ers platinium still holds the price.

                  similair is the case of RE in chennai(proper). other than flats you dont come across more than a few properties for sale in a location(discounting the fact that very few would be a distress sale).
                  as somebody said land prices(not flats) are still lesser in chennai compared to the 3 metros and ers from those places acquire RE in chennai at great prices(to them it is cheap compared to Delhi,Bombay,Bangalore etc)

                  RE is truly baffling
                  Very good analogy drawn here abk.

                  When Builders found they could quote and earn huge profit by promoting the same building some 50kms in the outskirts.They stopped developing inside the city and shifted their focus outside, The few who still continue constructing demand premium rates thats exhorbitant.

                  worthy properties have become a rarity in chennai.

                  Regarding chennai lands being cheaper,The land is cheap only in comparision with other cities.

                  The land price have risen leaps and bounds.There seems to be no logic or demand/supply equation to support why a land sold at 6 lakhs/grnd some years back should be sold at 60 lakhs/grnd today.

                  Maybe there isnt any logic and one shouldn't search for one.Its better to assume and accept this is how RE boom happens.

                  Today RE not only caters to the demand from the local market but also at the national and global level.

                  But did these people who bought from other cities/countries perform a one to one comparison of the facilities/infrastructure before going ahead with chennai?

                  I feel the answer is No.For a person who doesnt know chennai, every locality with chennai pincode is chennai.It doesnt matter to them even if its in the outskirts.

                  While I was enquiring about availability on a high rise on OMR, I was shocked to find out that all the top 4 floor in one of the block was booked under a single person's name, who was part of a leading financial consulting company.

                  The businessmen/NRI from other cities and countries are being advised by their financial consultants to buy property in chennai as part of their portfolio as it is cheaper comparatively and chennai holds very good promise in the future.Thats the reason they all bought it.

                  Now, when the financial and asset management companies sense that returns from RE are not as attractive like before, the same consultant would advise their clients to exit immediately and offer to help in the transaction.The clients will be willing and complying to do so.They did not understand why they have invested in the first place to understand why they shouldn't exit now.

                  Many businessmen and top earners hire financial consulting firms for wealth management.They have passed the responsibility of managing their investments to these companies and allow them to make decisions on their behalf and are happy as long as they continue getting good returns.
                  Last edited March 17 2009, 01:42 AM.

                  Comment

                  • #99

                    #99

                    Re : Property Price Trends in Chennai

                    Originally posted by nabishek View Post
                    Very good analogy drawn here abk.

                    When Builders found they could quote and earn huge profit by promoting the same building some 50kms in the outskirts.They stopped developing inside the city and shifted their focus outside, The few who still continue constructing demand premium rates thats exhorbitant.

                    worthy properties have become a rarity in chennai.

                    Regarding chennai lands being cheaper,The land is cheap only in comparision with other cities.

                    The land price have risen leaps and bounds.There seems to be no logic or demand/supply equation to support why a land sold at 6 lakhs/grnd some years back should be sold at 60 lakhs/grnd today.

                    Maybe there isnt any logic and one shouldn't search for one.Its better to assume and accept this is how RE boom happens.

                    Today RE not only caters to the demand from the local market but also at the national and global level.

                    But did these people who bought from other cities/countries perform a one to one comparison of the facilities/infrastructure before going ahead with chennai?

                    I feel the answer is No.For a person who doesnt know chennai, every locality with chennai pincode is chennai.It doesnt matter to them even if its in the outskirts.

                    While I was enquiring about availability on a high rise on OMR, I was shocked to find out that all the top 4 floor in one of the block was booked under a single person's name, who was part of a leading financial consulting company.

                    The businessmen/NRI from other cities and countries are being advised by their financial consultants to buy property in chennai as part of their portfolio as it is cheaper comparatively and chennai holds very good promise in the future.Thats the reason they all bought it.

                    Now, when the financial and asset management companies sense that returns from RE are not as attractive like before, the same consultant would advise their clients to exit immediately and offer to help in the transaction.The clients will be willing and complying to do so.They did not understand why they have invested in the first place to understand why they shouldn't exit now.

                    Many businessmen and top earners hire financial consulting firms for wealth management.They have passed the responsibility of managing their investments to these companies and allow them to make decisions on their behalf and are happy as long as they continue getting good returns.
                    Salarys and cost of living are also more in other 3 metro cities as compared to Chennai.Bangalore has huge chuck of income from IT,Mumbai from financials,industries and Delhi from central government people.But Chennai has low paying auto industry.So cant comapre Chennai with other cities.

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by Natarajg007 View Post
                      Chennai RE is baffling eh? Great! Think of it. In SIS Safaa down GST road in Urapakkam almost 40km from Mount Road price of a flat is Rs 3500/sqft. Then in Adayar the price should be 35000 psft and at 10K psft it is so cheap. Only a congenital idiot will ever sell it cheaper than that and I dont think Chennai BUilders are so stupid yet!
                      Ofcourse Congenital idiots of B U Yers exist and SIS Safaa!
                      But who is buying it. These are ad prices. But no takers.

                      If you approach them you will get 30% discount

                      Comment

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