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Property Price Trends in Chennai

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  • Re : Property Price Trends in Chennai

    Much of the CBD price fundamentals are derived from the lack of infrastructure and slow suburb migration. It may not remain that way for ever and the moment, semblance of credible alternative appears in the horizon, CBD prices will find it support based on its own fundamentals. Its like people piling on HUL and ITC during bad times however crappy those valuations are. Time-bound strength or lack of good alternatives being attributed to the fundamentals is akin to living on borrowed time.

    CBD speculators are no different from suburb speculators - both are betting on the same aspect - infrastructure development and suburb migration; one being bullish and other being bearish. Jury is not out yet and rear view mirror is not an indicator nor guarantee for future performance - history has shown it time and again.

    Mav

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    • Re : Property Price Trends in Chennai

      Rs 150 crore land of actors' union in legal tangle

      CHENNAI: A controversial proposal to develop an 18-ground property worth 150 crore belonging to the actors' association, Nadigar Sangam, on Habibullah Road in T Nagar, slipped deeper into a legal quagmire, with the Madras high court staying the operation of a lease deed between the office bearers and a multiplex developer.

      Justice Vinod Kumar Sharma on Tuesday granted the interim injunction on a civil suit filed by Poochi Murugan and P A Kaja Mohideen. "The respondents [office-bearers] have sought time to file a counter. The case is adjourned to December 18. In the meantime, there shall be an interim injunction," the order said.

      The Nadigar Sangam Charitable Trust, formed in 1987 to provide assistance to its 3,000 members from the film, drama and television industries, is supposed to have nine members to run its affairs. However, it now has only two members, actor-MLA R Sarathkumar and his brother-in-law Radha Ravi.

      In his capacity as general secretary of the sangam, Radha Ravi gave general power of attorney to R Sarathkumar on August 6, 2010. Sarathkumar executed a lease deed in favour of Radha Ravi over the property. On November 25, 2010, they executed a separate lease deed of the property in favour of M/s SPI Cinemas. The proposal was to develop a multiplex at the site for a consideration, which, the present applicants said was too low.

      The present suit, alleging lack of transparency and threat to the property belonging to the association, asked the court to restrain the actors as well as the multiplex developer from giving effect to the lease deed and from carrying out any construction at the site.

      Last month, while granting leave to file the suit, Justice K Chandru had commented that all was not well with the Nadigar Sangam. He had said: "The fact that one of the two trustees executed a long-term lease deed in favour of the other trustee itself shows that the trust and its property are being grossly mismanaged. All is not well with the way the trust is functioning."








      Rs 150 crore land of actors' union in legal tangle - The Times of India
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      • Re : Property Price Trends in Chennai

        Originally posted by maverick007 View Post
        Much of the CBD price fundamentals are derived from the lack of infrastructure and slow suburb migration. It may not remain that way for ever and the moment, semblance of credible alternative appears in the horizon, CBD prices will find it support based on its own fundamentals. Its like people piling on HUL and ITC during bad times however crappy those valuations are. Time-bound strength or lack of good alternatives being attributed to the fundamentals is akin to living on borrowed time.

        CBD speculators are no different from suburb speculators - both are betting on the same aspect - infrastructure development and suburb migration; one being bullish and other being bearish. Jury is not out yet and rear view mirror is not an indicator nor guarantee for future performance - history has shown it time and again.

        Mav
        Nicely stated and loved the example you quoted.

        For all those CBD bulls those who curse suburbs and infra, please talk to some older generation folks, how so called CBD llocations in South Chennai in 1960s and 1970s were known only for bhoot bungalows. If you have a perspective of more than 10 years, it is better to invest in a Mugalivakkam or Mogappair or Velachery, since these will be eventually the desired CBD areas .

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        • Re : Property Price Trends in Chennai

          CBD investment is crowded for an another reason as well - No-dirt-in-the-collar or Remote control types and suits for NRIs and their aged parents/in-laws. Suburb investment takes time and toil - lot of hardwork and sweat, getting dirty and roll-up-the-sleeve type investments. As the Surf commercial claims - Stain is Good!

          One have to have a good sense on sensing potential and how to value stuff where the variances can be as huge as 100%. Most of the people who got burnt are the ones who did not have what it takes to do it - lack of knowledge, paid huge price, read the market wrong, lack of diversification etc.

          Not to say that one is bad or another is better - both are different classes and different risk/rewards with varying time horizons. Both are needed and in the right proportion for what one's risk tolerance and time dictates.

          Very surprised to see the jingoistic tendencies in this thread where the war is between which is better - not a debate topic at all!

          Mav

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          • Re : Property Price Trends in Chennai

            Originally posted by Economist View Post
            Well said.

            I was about raise the same things.

            I think lot of frustration is the reason for such senseless talk and conspiracy theories.
            .
            +1 to that! Been thinking along the same lines.

            Originally posted by maverick007 View Post
            Ramchi:
            Your generalization and broad brush painting sees no end. Some of your generalization 'gems':

            1. Builder's close affiliates become buyers to prop up the demand. Do you think this is sustainable even in a short term?
            2. Millions thriving in Chennai with out choice. Really?
            3. Chennai as a capital failed so far. What is your definition of failure?
            4. No quality space, infrastructure, public mindset available in Chennai. ???
            5. MGR indeed tried this approach but RE Wallas (outside interest groups) in Chennai opposed this vehemently even in 80s when Chennai witnessed water scarcity even with 1/10 of the current population. Can anyone help me understand what that means please? Who is this outside interest group???
            6. Hira charges Rs 5 psft for maintenance. You make this statement after being aware that it was for the *first initial 5 families*. Isn't there something known as critical mass for prices to settle down when the steady state is reached?

            Maverick
            Well said or rather, well asked.

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            • Re : Property Price Trends in Chennai

              [QUOTE=Ramchi;632897]
              Originally posted by lovebirds43k View Post

              Not quit Sir. In OMR it is about 12-14 hours of power cut if the township is linked to the rural power grid. Only Siruseri IT park and units beyond Thoraipakkam (Tidel and Perungudi) are experiencing similar to City areas.


              There is absolutely no potable water in OMR and every drop is being purchased through tanker lorries.

              !!!
              Oops. I meant OMR the areas upto Shol which are in corporation limit. They have power cuts just 2 hrs like any part of city.

              Yes areas like kelambakkam,Siruseri etc will have to use DG set.

              It depends which part of OMR we talk.

              I think at present upto Shol it is a liveable region, beyond that investment region

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              • Re : Property Price Trends in Chennai

                Originally posted by dracula View Post
                k11, Concept of suburb in chennai is different frm say New Jersey as a suburb of New York. Its live cheap in NJ and travel to NY. OMR is not like that. OMR has IT offices, employees dont need to travel to CBD once social infra develops. This will take time, but that is the idea. Even now, someone working in TCS Siruseri and living in the area needs to travel to CBD may be only once a week or so. Same for GST also.

                TN is following a mixed-use development model. people live and work in the respective areas.

                Mixed-use development - Wikipedia, the free encyclopedia

                Less than 5% of Chennai population work in IT companies in OMR.
                So for an IT employee, OMR is very attractive. For rest of the public it is a hassle. For NRIs and IT workers, suburbs are a good choice as many have cars and have access to easy transportation.

                Of course, I understand most forum members belong to this 5%. I do agree with you.
                Last edited November 21 2012, 09:14 PM.

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                • Re : Property Price Trends in Chennai

                  Originally posted by trk2012 View Post
                  If you stay in so called city limits, EMI will be 80K-90K that too for much lower amenities provided. Still car cost will be high at 3K-6K (10K is exaggeration) because most while collared IT jobs and even blue collared automobile jobs are 30-40 kms from so called city limits. Still school fees will be high, city schools will not charge cheap because they are located in Mount Road etc. Still maintenance cost of at least Rs. 3000 will be there inside so called city limits also if its a good apartment.

                  Work out the Maths? anybody will. The answer is there is no difference.

                  In fact good gated townships in suburbs like OMR, GST and Oragadam (after few years) will work out much cheaper because of lower EMI compared to apartments in so called inside city limits. Forget other items in the monthly household accounting - just base EMI of 80K-90K minimum for so called city properties will be much higher then entire monthly household budget if living in gated townships in suburbs like OMR etc.

                  Also in long term, appreciation will be higher in gated townships along OMR, GST, Oragadam because this is where all jobs will be eventually. Big governments, major companies like L&T etc are not fools to promote suburbs like OMR, GST, Oragadam etc. without any reason. In fact I like Oragadam when some members here are still debating about OMR Yes or No?

                  In US, educated tax paying white people live in suburbs and not inside big cities, migration to suburbs started happening over last 80 years in all big cities take LA, San Francisco etc. However US is different, people don't hesitate to drive long hours for commute - living in suburbs and working in cities. Some suburbs have themselves becomes major jobs creation centers, example: Irvine in orange county, which was considered suburb of LA.

                  But in Chennai, to overcome this problem even thousands of jobs are mainly getting created in suburbs only like OMR, GST, Oragadam etc.
                  well i am not painting anythiing , dont know where u live, but i live in T Nagar with 1000 as maintainance charge for a 1200 2 bhk, hardly use car (hate in this traffic) wht facilities u need- have escape, any malls sathyam all restaurants and every facilities u need and on top have great established schools, rail, buses, share autos, airport, world class health care options- so pls stop talking of OMR and T nagar- have numerous friends of mine buying a house in suburbs and unable to manage and selling their houses and coming back to city in the last 3-4 years which has resulted in huge price appreciation.

                  i am for investment in suburbs but only i cautioned on the price tags of it. especially the way in which the builders r looting. no approval but they ask for payment upto 50% and lifetime maintainance which literally means the builders own it. Olympia Opaline has declared the club house belongs to them and all residents r only lifetime members (only for 25 years)- they run their own malls inside ur building.

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                  • Re : Property Price Trends in Chennai

                    Topic is about " Price trend in chennai " but OMR being part of Kanchipuram Dt is being pulled here without any objective but with subjective info .

                    Chennai is having a floating and working population of 90% to the extent possible that too with understanding scenario and garnering 3 big projects to pull mega rich 10 Crore + section in abov,add,Seagull

                    CBD or City will be off from 1990 scenario where IT companies started mushrooming in city and by 2004 started moving out from STPI regime to SEZ Structure

                    The same crowd which started the ball rolling in RE be in terms of Rental hike, Invetsment , double Investment or for that matter multiple investment will drive the suburb where SEZ starte and established in the days to come.

                    Much of the IT crowd will settle in OMR stretch besides business and HNI segement shortly as per the actual interaction in well established and quick connectivity Residential townships
                    Last edited November 21 2012, 10:57 PM.

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                    • Re : Property Price Trends in Chennai

                      Hmm strange to see some members who's views always cater to the IT people. There is not much range covered in arguments. Not only IT folks, infact many, use internet.

                      Anyways, I feel that all this talk about growing suburb and how the current city used to be the same years back, is all good to hear.

                      But the only thing I am worried about is, the reasons why the existing "art-of-city" (as developers pronounce it) developed doesnt look like being passed on to the growth of current suburb. The Govt promises lot of things to the suburbs but lets accept OMR has been give stepmotherly treatment inspite of what it has given back. GST has been given more focus due to the obvious reasons of having raliway lines and airport and govt has enough intelligence and experience (redundant??) for growth in this area. Very Old areas like Tambaram and Ambattur still havent got the best of social infrastructure, what is the sureity that the newly developed areas will get in the next decade? How is the Govt deciding this is the next area for development and is there real sustained focus?

                      Are we thinking just opening up of Malls, Multiplexes would make an area posh or equal to those inside city? Medavakkam is one of the few areas to be blessed with good ground water, but even there the lakes are drying up. IMHO Medavakkam deserved to be included in corportation limit even before Madipakkam got. But this didnt happen. Proximity to Velachery is benefitting Madipakkam and Pallikaranai.

                      Just throwing questions as I think, many people still keep running back to the city due to an established infra. Some of my freinds have rented out suburb flats and add some money to it and live in smaller CBD flats. This is also one developing trend.

                      Now with all this said, I think there is little more than "I am obsessed about city" in this behavior.
                      Last edited November 21 2012, 11:01 PM.

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