Hi Friends,

I had been to the FAIRPRO '09 Fair.My Impression after seeing, is that prices are stagnating for all ongoing projects and builders are trying hard to hold them up.

Prices are 10-20% lower for new projects in the pipeline and for ready to occupy flats.

The discount offered at the stall was very less and were in the range 150-500 Rs/sqft max.

For the benefit of fellow members I am posting the project/price details of some of the properties.



Akshaya Foundations

Adora - OMR - 3750/sqft
Aikya - Adyar - 12500/sqft

Alliance Group - Orchid Springs - 3199/sqft

Arihant Foundations

Heirloom - Thalumbur - 2499/sqft
Escapade - Thoraipakkam - 4150/sqft
Villa Viviana - Maramalai nagar - starting from 1 Crore

Asvini Foundations

Amarisa-phase1 - Ramapuram - 4500/sqft
Amarisa-phase2 - Ramapuram - 4250/sqft
Akshita - Madipakkam - 3800/sqft

Casa Grande

Riveira - Palikkarnai - 3450/sqft - before discount 3600/sqft
Silver Oak - Perungudi - 4300/sqft - before discount 4500/sqft
Madhuban - Madipakkam - 3300 /sqft - before discount 3500/sqft
Mylapore - R.K.salai - 12500/sqft
Plots
Ponmar -785/sqft - before discount 825/sqft
Maraimalainagar - 790/sqft - before discount 825/sqft

CeeDeeyes - Chenni Pattinam

Basic Rate - 1600/sqft All Inclusive - 2075/sqft

Chaitanya shanthiniketan

Sunnyvale - Ayanavaram - 4850/sqft
Serena - Rajkilpakkam - 2550/sqft
Gardenia - OMR - 1900/sqft
Green Park - Chitlapakkam - 3300/sqft

DLF

Gardencity - 3200/sqft - was told slash in prices expected in coming weeks.

Doshi Housing

Etopia I and II - Perungudi - 3895/sqft
Nakshatra - Tambaram - 2995/sqft - Completion May 2010
Tranquil - Velachery - 5500/sqft - Completion February 2010
Trinity park - Santhoshpuram,Vengaivasal - 3195/sqft - Completion April 2009
Serene Couny-Villas - Santhoshpuram,Vengaivasal - 2200,2600/sqft
LlanStephan - Chetpet - 9000/sqft - Completion May 2009
Sri Mahalakshmi - Ayanavaram - 4495/sqft - Ready to Occupy

ETA

Rosedale - OMR - 3100/sqft
Le Chalet - Villas - Sriperambudhur - 26 Lakhs - 37 Lakhs

Hiranandani Upscale - 4200/sqft

Hiranandani Palace Gardens - 3475/sqft

Indus Housing

anantya - Navalur,OMR - 2299/sqft + 400(other charges)
riviera villa - Navalur,OMR - 90 Lakhs onwards
habittera - urapakkam,GST - 2399/sqft + 400(other charges)
amber - Saidapet - 4750/sqft

Jain Housing

Ankush Prakas - Kilpauk - 7500/sqft - Ready to occupy
Amrit Kailash - Strahns Road - 4500/sqft - Ready to occupy
La Gardenia - Nungabakkam - 7500/sqft - Ready to occupy
Ansruta - Valluvarkottam, nungabakkam - 10000/sqft - Ready to occupy
Antariska - Kodambakkam - 4500/sqft - Ready to occupy
Eiffel Garden - Vadapalani - 4250/sqft - Ready to occupy
Saagarika - M.R.C Nagar, sea facing - 10000/12500 - Ready to occupy
Green acres - Pallavaram - 3900/sqft - Ready to occupy
Abhishek - Selaiyur - 3500/sqft - Ready to occupy.

Jamals

Orchid - Palikkarnai - 3500/sqft
Palazzo - keelkattalai - 3700/sqft
Grandeur - Velappanchavadi(near saveetha dental college) - 3200/sqft

KGEYES

3 Projects on L.B.Road, Thiruvanmiyur - 6650/sqft
Delmare - Beach road,Thiruvanmiyur - 7000/sqft
Carolina - Velachery,Taramani - 4500/sqft
Swathi - Sastri Nagar,Adyar - 8500/sqft
Kalakshetra - 8000/sqft

Landmark Constructions

Tiara - Perungudi - 4000/sqft - Completion on August 2009
Aston Ville - Vadapalani - 5500 sqft - Completion on July 2009
Tudors Place - K.K.Nagar - 6500/sqft
The Address - Adyar - 11500/sqft
The Grange - Palavakkam - 7500/sqft
Cenralia - Chrompet - 2950/sqft - prelaunch
Gem Towers - AnnaNagar - To be launched.
Mahalakshmi Heights - Ashok Nagar - To be launched

L&T Estancia
Construction in Progress
1st-3rd Floor - 3950/sqft
4th -12 floor - floor rise charge of 20/sqft for each floor
13th - 17th - 4450/qft

L&T Eden Park - 3600/sqft

Mantri Synergy - OMR
2800/sqft - with 20/floor rise
Special offer - First Floor - all inclusive
1140 sqft - 33,67,000
870 sqft - 28,50,000

Navin Housing

Dayton Heights - Nelson Manickam road - 6500/sqft + 30/sqft floor rise from 2nd floor
Subha Mangala - Ramapuram - 4200/sqft
Brookfield - Nanmangalam - 3500/sqft
Merrylands - Medavakkam - 3500/sqft

Olympia Opaline - 3441/sqft - spl budget flats available

PACE Builders

Anna nagar west - 4195/sqft - before discount 4495/sqft
Selaiyur - 3195/sqft - before discount 3495/sqft
Valasarvakkam - 2795/sqft - before discount 3295/sqft

PS Srijan

The Grand - Velachery - 5250 sqft - before discount 5500/sqft - Floor Rise applicable from 4th floor

Rajparis

Harmony - Medavakkam - 3100/sqft

Rajarathnam Constructions

RC Prince Gardenia - Perambur redhill road,Kolathur - 3600/sqft

Rajkham

Independant houses - Ayyapathangal - 2600/sqft

Real Value

Sai Skanda - Velachery - 4200/sqft
Sai Surya - Palikaranai - 3800/sqft
OMR opp SIPCOT - 13.20 Lakhs onwards

Shriram Properties

Trishakti - SIPCOT - 2750/sqft
Shankari - 1990/sqft

Sidharth foundations

Tulip - k.k.nagar west - 4800/sqft - completion march 2009
Natura - medavakkam - 3100 /sqft - completion july 2009
Visvaleela - Annanagar - 8500 /sqft - to be launched
Dakshin - Urapakkam - price TBD - to be launched
upcoming projects in porur, thoraipakkam, rajkeelpakkam, mogappair.

SIS

Safaa - Urappakam - 3150/sqft

SSPDL

Crescent - Kelambakkam - Vandalur Road - 2500/sqft
Upcoming 2 villa project one in OMR and one in Sriperambathur.

Sumanth & Co

Thiruvanmiyur - 6000/sqft
Besant Nagar - 11500/sqft

TVH

Lumbini square - Pursaiwalkam - 5500/sqft + 30/sqft floor rise from 5th floor
Ouranya Bay(Premium) - OMR,Padur - 3100,3200 + 25/sqft floor rise from 5th floor
Ouranya Bay(Budget) - 2bhk - 20 Lakhs
3bhk - 30 Lakhs
Ekanta - Coimbatore - 3100/sqft
Revata - Mogappair east - 4500/sqft
Kamya - K.K,Nagar - 7000/sqft
Metro Golden Nest - Sriperambathur - 1bhk - 15 Lakhs
2bhk - 22 Lakhs
3bhk - 28 Lakhs

VGN Group

Minerva - Mogappair,Nolumbur - 2975/sqft
3 in 1, 4 in 1 - 3800/sqft
Mahalakshmi Nagar,Thiruverkadu - 3500/sqft
Plots
Mugalivakkam - 52 Lakhs/grnd
Selaiyur - 50 Lakhs/grnd
SPKoil - 34 Lakhs/grnd
Katankulathur - 22-27 Lakhs/grnd

Yuga Homes

Shem Park - chemmenachery - 3300/sqft
Upcoming in Koyambedu, R.A.Puram(8000/sqft)



There are lots of properties and also lots of potential buyers.There is sure a sense of uncertainity among the builders and also the buyers on when to make the next move.It was evident that correction in RE prices have started to happen.

Requesting members to respond with their thoughts on the current trend.
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  • Originally Posted by maverick007
    Above statement need not hold when you include Apartments in the list and your omission is unlikely to be accidental, I guess :).

    With 40-60% of the apartment cost representing the land share, the long term view becomes dismal - from the investment perspective. Much of the context in which Septaa brought in his views and where I added further, is for apartments.


    The reason why I did not add new apartment to the list (although they may or may not have slightly similar impact) is because:

    1.New flat/Of the plan Builders pricing tend to be more structured and the pricing not as volatile as private vendors who change their price and mind on a daily basis.

    2. The traders, PoA brokers, Switching hand operators, Agreement party etc etc who spike up prices are usualy absent in New flat/Of the plan transactions.

    3. The situation where 10-15 brokers attack the owner and change his mind or interfere and break the imminent deal (arranged by other broker) to some how strike a deal with his yet to aquire client.

    Based on the above points I feel plot,Land,house,old flats etc are much more impacted and quick to react to prevailing market conditions.
    --------------------------------------------
    By the way, my post was just a general comment (observing current slowness in market) and was not a specific response to any post.
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  • Originally Posted by k11
    Market is slow and stagnation ahead - totally agree. But do not agree on some of the above statements.

    Capital values on luxury housing do not depend entirely on rental values.

    Truly well do people do not care about rents or yeilds.
    They buy it for end use, 2/3/4/nth home. They will keep it locked, use it for holiday home, business trips, etc.

    Renting, yeild calculation and all, is what regular IT/NRI/Upper middle class people do.
    Most of this population do not buy luxury flats, they buy in suburbs or buy in cheaper apartments in city.
    Let's exclude people who have most of their portfolio in RE.

    There is a difference between regular people and actual rich people.
    There are many people who have money in businesses, stocks, career (sports/celebrity/politics), etc.

    Folks with money do not calculate yeild on expensive cars, foreign trips, jewellery, parties, weddings, etc.
    Luxury flats are sold as lifestyle choice not necessarily as investment.

    The number of people who are making the big money are increasing.
    It was a rapid increase in earlier years as the economy boomed. Once the economy improves, they will go up.

    India is new to this type of luxury housing. Chennai is well behind Mumbai and Delhi.
    There is a big demand, many people are moving up the ladder and there is a demand for such units.

    I do not think we call all the housing projects in Chennai as luxury.
    That is a wholly different topic. Let me not deviate.

    By the way, most high end Apts in growing markets like Hong Kong, Singapore, Shanghai, etc yeild under 2-4%.

    Let's not use rental yeilds as barometers.
    Use Economy, rising incomes, dispoable incomes, increase in number of rich people or ultra rich people.


    I might have used many confusing terms - semi rich, rich, truly rich, ulta rich, etc.......
    Putting a numerical bracket around these is very difficult and even I am having hard time even thinking about it.

    I think most expensive apts in the city cost around 10-15C.
    So if you do not have atleast 50C you cannot call yourself rich in Chennai. That number will keep on increasing.

    There are many politcos, movie stars, sports folks, industrialists, businessmen, etc who have 250-1000 crores(white/black) in every single city in India. There are people in villages with that much money.
    In Chennai, I think these guys must be 5000 or more.
    Politcos from various parties alone might make up a huge chunk.
    Adding rural surrounding areas, nearby states you might be looking at roughly double the number.

    Then you have certain people who are in thousands of crores.
    It would be a small number but they do play a big role too buying up entire buildings.


    Very well put argument and agree to the T investment in luxury apartment is not based on rental yield and it is never will be in future . affordability will never a big issue for buyer in this segment also liquidity could be issue for some but not for all .

    may be big issue money in other investment asset than RE is the biggest factor imore important then liquidity issue it also sentimently and financial RE it not a very attractive asset class at the movement

    Just another interesting observation over few drinks with few friends we observed there is very big inverse correlational between stock market and RE in India. We all know money moves from one class to another asset class what more interesting is big stock market moves up RE is down and vice versa this is true from 1991-2014
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  • Just another interesting observation over few drinks with few friends we observed there is very big inverse correlational between stock market and RE in India.


    This is asset rotation which routinely happens - theme behind asset rotation, while some may see as a correlation which can be debated, remains that the asset being sold is considered expensive. One asset cannot continue it's phenomenal run forever. Developed part of RE has had a phenomenal run in the name of land being scarce and suburbs lacking infrastructure, it has its limits. As the article put it nicely, RE had a 15 year run and is this a end game? End game need not be a crash and a possibility of quick erosion in values beyond 10-15% looks unlikely, IMO. With the carrying cost as high as 10-12%, even a lack lustre 5% return p.a from the current inflated base levels, over the next 5 years can be painful, considering that many lack diversification out side of RE.
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  • Originally Posted by k11
    Market is slow and stagnation ahead - totally agree. But do not agree on some of the above statements.

    Capital values on luxury housing do not depend entirely on rental values.

    Truly well do people do not care about rents or yeilds.
    They buy it for end use, 2/3/4/nth home. They will keep it locked, use it for holiday home, business trips, etc.

    Renting, yeild calculation and all, is what regular IT/NRI/Upper middle class people do.
    Most of this population do not buy luxury flats, they buy in suburbs or buy in cheaper apartments in city.
    Let's exclude people who have most of their portfolio in RE.

    There is a difference between regular people and actual rich people.
    There are many people who have money in businesses, stocks, career (sports/celebrity/politics), etc.

    Folks with money do not calculate yeild on expensive cars, foreign trips, jewellery, parties, weddings, etc.
    Luxury flats are sold as lifestyle choice not necessarily as investment.

    The number of people who are making the big money are increasing.
    It was a rapid increase in earlier years as the economy boomed. Once the economy improves, they will go up.

    India is new to this type of luxury housing. Chennai is well behind Mumbai and Delhi.
    There is a big demand, many people are moving up the ladder and there is a demand for such units.

    I do not think we call all the housing projects in Chennai as luxury.
    That is a wholly different topic. Let me not deviate.

    By the way, most high end Apts in growing markets like Hong Kong, Singapore, Shanghai, etc yeild under 2-4%.

    Let's not use rental yeilds as barometers.
    Use Economy, rising incomes, dispoable incomes, increase in number of rich people or ultra rich people.


    I might have used many confusing terms - semi rich, rich, truly rich, ulta rich, etc.......
    Putting a numerical bracket around these is very difficult and even I am having hard time even thinking about it.

    I think most expensive apts in the city cost around 10-15C.
    So if you do not have atleast 50C you cannot call yourself rich in Chennai. That number will keep on increasing.

    There are many politcos, movie stars, sports folks, industrialists, businessmen, etc who have 250-1000 crores(white/black) in every single city in India. There are people in villages with that much money.
    In Chennai, I think these guys must be 5000 or more.
    Politcos from various parties alone might make up a huge chunk.
    Adding rural surrounding areas, nearby states you might be looking at roughly double the number.

    Then you have certain people who are in thousands of crores.
    It would be a small number but they do play a big role too buying up entire buildings.


    What you are saying is true outside TN. In Chennai or TN the number of people having more than 250 crores are very less. The ratio of super rich is very low in TN compared to Kerala or other states. City wise forget Mumbai or Delhi even hyd,Bangalore or kochi has lot of super rich but very less in chennai and almost nil in other parts of TN.
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  • In Chennai or TN the number of people having more than 250 crores are very less. The ratio of super rich is very low in TN compared to Kerala or other states. City wise forget Mumbai or Delhi even hyd,Bangalore or kochi has lot of super rich but very less in chennai and almost nil in other parts of TN.
    The point is, it is clear that there is no fundamentals to the asset class that can support this valuation. Fundamentals being alluded is the 'wealth effect' and the resultant flow that arises out of the same - all of these are very anecdotal and questionable.

    Often when fundamentals run out, such theories usually prop up. For long, Vancouver market was propped up by inflow of HongKong immigrants on the premise that they will keep buying no matter what the price is. Same way, San Francisco Bay Area RE market is through the roof now and the theory goes, Chinese investors are buying and will keep buying and there is FB/Twitter wealth effect, is the rationale dished out to support such over priced assets. It is easy to get carried away but it is tough to take the view against the grain and see the nonsense behind such theories and realize the fact that the asset prices cannot be supported by 'flows' in a sustained fashion.

    We all know how the asset values predicated on 'flows' end up - classic example is our Indian Stock Market and FII flows.
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  • Originally Posted by maverick007

    We all know how the asset values predicated on 'flows' end up - classic example is our Indian Stock Market and FII flows.


    Assuming, FIIs originally had $200 Bn investments in Indian stocks, if FIIs pump in another $10 Bn to raise Indian Stock Markets by 10%, subsequent withdrawal of merely $1Bn by FIIs will result in losing 10% of stock indices. So their $209 Bn will go down to $188 Bn. So removal of merely $1Bn can decrease total investments value by about $21 Bn! ROFL!

    I don't see similar scenario in Realty, buts it funny the way stock indices work, when observed in short periods.
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  • Originally Posted by chennaidesi
    What you are saying is true outside TN. In Chennai or TN the number of people having more than 250 crores are very less. The ratio of super rich is very low in TN compared to Kerala or other states. City wise forget Mumbai or Delhi even hyd,Bangalore or kochi has lot of super rich but very less in chennai and almost nil in other parts of TN.


    I do not think this might be true. Though I have never visited the other cities of TN (except Pondy and Ooty), I think there are quite a few people with that kind of money.
    Mumbai or Delhi is no comparison. But the number of folks with money should be similar to other cities and areas.

    Elections is coming, each MP seat they will spend at least 200C, that is a lower end number. In hotly contested places, money will flow. Politics is expensive.
    Lets come to businesses. There might be at least top 50-100 businessmen in each small city, Owners almost always own a huge stake. The small city/town guys, we might not hear about, but they have generated a huge amount of wealth.



    Originally Posted by Septaa
    Very well put argument and agree to the T investment in luxury apartment is not based on rental yield and it is never will be in future . affordability will never a big issue for buyer in this segment also liquidity could be issue for some but not for all .

    may be big issue money in other investment asset than RE is the biggest factor imore important then liquidity issue it also sentimently and financial RE it not a very attractive asset class at the movement

    Just another interesting observation over few drinks with few friends we observed there is very big inverse correlational between stock market and RE in India. We all know money moves from one class to another asset class what more interesting is big stock market moves up RE is down and vice versa this is true from 1991-2014


    For some of the people who buy the luxury apts, it is not a RE vs asset class.
    It is not a investment vehicle, it is a place to live, own and enjoy. For some, the paper value of the house is immaterial, they do not sell them just because market is slow.
    Home ownership is held with high pride around the world. In India it is a status symbol.

    Who calculates depreciation, returns and all in a luxury car dealership, or at airport before going for vacation, or when planning a massive wedding, etc. I am sure people with lot of money look do not look at housing the same way.




    Lets comeback to forum members - Market is slow, will be slow for some more time - I do not think people would refute that. I would like to know how many are selling their homes and moving into rental homes. I am sure many of you will keep on holding even when you know there is going to be no return or even if it slightly decreases in value. Instead other asset classes, even a plain bank FD might beat the returns.

    Here is my take,
    The people who are into stocks, RE investments/speculation, yield chasers, etc are mostly focused on suburbs betting on upcoming areas. Even many builders are stretched thin on such projects. Suburban projects are not like city projects, city projects are done fast they get built under 2 years, some big ones would take 4-5 years. Suburban projects takes decade sometimes. It is not easy, laying roads, underground pipelines, foundation, etc. Even selling such projects with thousands of apts across hundreds of acres is hard.
    Suburban builders might be forced to sell at discount bringing down rapidly the prices for houses in that area, might even cause a domino effect.

    You are going to see crashes in speculative places before you would come across some of the more expensive locations. GST/OMR will see reduction before you see sales on Boat Club/Poes Garden.

    Good example on Aynambakkam. I do not know where it is, should be another speculative place. I thought I saw threads here on that area.
    CommentQuote
  • I feel projects that are in multiple phases of development, the builders may delay subsequent launch of phases. If there is compilation to launch, it would be priced less that the previous phases. The most affected parts could be remote not developed / under development
    areas and suburban. As far as plots are concerned, there will be stagnant pricing going forward at least 2 to 3 years. This may continue till the new govt at settle down and make real progress on development.
    CommentQuote
  • Originally Posted by k11
    I do not think this might be true. Though I have never visited the other cities of TN (except Pondy and Ooty), I think there are quite a few people with that kind of money.
    Mumbai or Delhi is no comparison. But the number of folks with money should be similar to other cities and areas.

    Elections is coming, each MP seat they will spend at least 200C, that is a lower end number. In hotly contested places, money will flow. Politics is expensive.
    Lets come to businesses. There might be at least top 50-100 businessmen in each small city, Owners almost always own a huge stake. The small city/town guys, we might not hear about, but they have generated a huge amount of wealth.





    For some of the people who buy the luxury apts, it is not a RE vs asset class.
    It is not a investment vehicle, it is a place to live, own and enjoy. For some, the paper value of the house is immaterial, they do not sell them just because market is slow.
    Home ownership is held with high pride around the world. In India it is a status symbol.

    Who calculates depreciation, returns and all in a luxury car dealership, or at airport before going for vacation, or when planning a massive wedding, etc. I am sure people with lot of money look do not look at housing the same way.




    Lets comeback to forum members - Market is slow, will be slow for some more time - I do not think people would refute that. I would like to know how many are selling their homes and moving into rental homes. I am sure many of you will keep on holding even when you know there is going to be no return or even if it slightly decreases in value. Instead other asset classes, even a plain bank FD might beat the returns.

    Here is my take,
    The people who are into stocks, RE investments/speculation, yield chasers, etc are mostly focused on suburbs betting on upcoming areas. Even many builders are stretched thin on such projects. Suburban projects are not like city projects, city projects are done fast they get built under 2 years, some big ones would take 4-5 years. Suburban projects takes decade sometimes. It is not easy, laying roads, underground pipelines, foundation, etc. Even selling such projects with thousands of apts across hundreds of acres is hard.
    Suburban builders might be forced to sell at discount bringing down rapidly the prices for houses in that area, might even cause a domino effect.

    You are going to see crashes in speculative places before you would come across some of the more expensive locations. GST/OMR will see reduction before you see sales on Boat Club/Poes Garden.

    Good example on Aynambakkam. I do not know where it is, should be another speculative place. I thought I saw threads here on that area.


    I had earlier enquired about VGN the sale manager quoted 25000 soft launch however news is they did not get any booking so presently the launch price is reduce to 22000 with few free bees work out to 20% discount. May be Ceebros 16000 launch is effecting.Or The stress on the balance sheet 400cr plus High interest NCD issue in favour On Ajay Piramal company ???????????
    Also news in the market One big South Indian private financier has underwriter in RE big time I am talking about 100s of apartment he underwrite has stopped underwriting any new project Booz his position is weakened with low cash flow and he is not able to exist his underwriting stock in secondary market.
    CommentQuote
  • Originally Posted by k11
    Ido not think this might be true. Though I have never visited the other cities of TN (except Pondy and Ooty), I think there are quite a few people with that kind of money.
    Mumbai or Delhi is no comparison.

    Elections is coming, each MP seat they will spend at least 200C, that is a lower end number. In hotly contested places, money will flow. Politics is expensive.
    Lets come to businesses. There might be at least top 50-100 businessmen in each small city, Owners almost always own a huge stake. The small city/town guys, we might not hear about
    .


    I have traveled extensively in TN and have relatives and friends in most southern Dst (From Tirchy to Kanyakumari) & Western Dst(Erode to Nagarkovil)

    Most CBE wealthy people tend to invest most of their locally.

    However wealthy business people from Tuticorin, Shivakasi & Erode tend to invest a small of personal wealth mostly in Chennai acres plus couple of bungalows on land.

    The remaining gets invested in to vast track of land in their regional areas (outside their towns) for current or future business use.

    PRP,VMM,VPArumugam,MKA,2x Periyasamis,Duraimurugan,OPS,Even JJ has most of the assets in regional areas

    Most business & Political class of regional TN has some hedges on Chennai Acreage for liquidity & Washing - but yet to hear they have bought flats & Villas (hard to wash)

    800 acre on NH 7 outside Viruthunagar or 500 acres on NH 47 outside Erode/Bhavani will take longer to sell than 40 acres near Padapai or Thirumullaivyol, where AP developers will grab it for Layouts in few weeks.

    Those guys usually have 1 or 2 traditional houses for personal use in Chennai but invest in washable acreage.


    Originally Posted by k11

    Good example on Aynambakkam. I do not know where it is, should be another speculative place. I thought I saw threads here on that area.


    Ayanambakkam (near Thiruverkadu) is a not speculators camp, It is lower middle class & middle class buyers driven by first home ownership dream.

    Typical buyer is a middle class renters, Goverment staffs, small business owners buy their first land to build their first own house.
    They buy land payoff private loans & Jewell debts for few years and then again get a bank loan, PF loan to build then move.
    CommentQuote
  • Good post, Eco.
    The only tamil family in one of our smaller complex is from southern TN. From a town which was in news for various reasons. They use the flat for monthly visits, sometimes twice a month. They run various businesses, I think even have links with a leader of a local party. They come in a car north of 1C, we have four luxury cars in building, this one is biggest. There is couple of more families like this in a building next to ours. I am seeing a lot of rich southern TN folks nowadays buying prime properties in the city. That is why I was commenting to @chennaidesi that southern TN have some rich folks.




    Originally Posted by Septaa
    I had earlier enquired about VGN the sale manager quoted 25000 soft launch however news is they did not get any booking so presently the launch price is reduce to 22000 with few free bees work out to 20% discount. May be Ceebros 16000 launch is effecting.


    Septaa,

    I am not a big fan of VGN project. It has lot of risks.
    VGN is not a big time luxury builder. They have never done any luxury buildings.
    So it is not like buying from DLF, Lodha, etc.
    I doubt even if they can execute such project and sell the units successfully.

    The building is on main road, so you will have to take a unit above 7-10+ floor to avoid noise. The builders do not include floor rise charges in the pricing. Also this might be a 2.5 FSI project, so might have more units. If you like the area you should look at residential streets like Pyrcrofts Garden, Kothari Rd, Haddows Rd, Wallace Garden, Rutland Gate, etc.
    This building is in a corner, the smaller street facing ones should be fine. Again there is a lot riding on the building design and layout. I feel it is way too big for a builder like VGN with no experience or track history on executing such projects.

    I put the VGN project fair value at 20-22K + Floor rise + charges = 24-26K
    They should pre-launch it at 17k.
    25K soft launch is crazy. There should be bigger discount for early investors.

    Ceebros project in Egmore is a totally different area.
    I would not compare Ceebros with this VGN or Akshaya Private project. Atlantis is definitely two tiers lower than these when it comes to location.
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  • The remaining gets invested in to vast track of land in their regional areas (outside their towns) for current or future business use.


    ^^^ Correction: It should read " speculated in to vast track of land in their regional areas (outside their towns) for current or future business use."


    However wealthy business people from Tuticorin, Shivakasi & Erode tend to invest a small of personal wealth mostly in Chennai acres plus couple of bungalows on land.
    Mostly in acres and that too in Chennai suburbs? Crazy! They do not seem to have much clue. They should have most of it in High Streets. Chennai has only few investment worthy Places - Poes/BC/Wallace. Are you sure they have invested their couple of Bungalows in those places ? If not, they are not invested in Chennai. Period. How come they are wealthy and connected but do not know the best kept secret of wealth creation ?

    Aside:
    Brand new apartment available in Ceebros, Kairali in Nageswara Road , Nungambakkam - ~1600 sqft for 2.6 crore was on classifieds by the builder. Looking from the price it must be from a 'Low Street'. Or must have deviation or FSI violation.
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  • Lets comeback to forum members - Market is slow, will be slow for some more time - I do not think people would refute that. I would like to know how many are selling their homes and moving into rental homes. I am sure many of you will keep on holding even when you know there is going to be no return or even if it slightly decreases in value. Instead other asset classes, even a plain bank FD might beat the returns.


    How many or what % from above will be in the class of below?

    Who calculates depreciation, returns and all in a luxury car dealership, or at airport before going for vacation, or when planning a massive wedding, etc. I am sure people with lot of money look do not look at housing the same way.


    Miniscule % or even near zero. It is largely irrelevant to the size of the real estate market even in core CBD. What this market does has no correlation to the rest of the market or even the economy, sometimes. I see no merit in discussing this segment or even bringing such topics, which may not find audience here. For most in the forum, who invest in RE, must be doing from their hard earned savings and some may be wealthy too - but unlikely to be a mindless splashing class, for whom the societal status comes from the 'address' presumably and not from who they are as a person, as projected above. They would not spend mindlessly and do measure where their investment is going. Hence, depreciation, returns and more importantly, they think before they invest. When they think and the money invested is a substantial % of their net worth, above matters.

    16000-20000 psft is no where near luxury in CBD - except the price that is. You still get only 4 walls and a roof and possibly a CBD address in a high street, mediocre street or a notch lower. If one wants to double check, please visit the specifications of Ceebros - Kairali. Discussion that started for this segment veered towards the luxury segment which has no relevance.
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  • Originally Posted by maverick007
    ^^^ Correction: It should read " speculated in to vast track of land in their regional areas (outside their towns) for current or future business use."

    Mostly in acres and that too in Chennai suburbs. Crazy! They do not seem to have much clue. They should have most of it in High Streets. Chennai has only few investment worthy Places - Poes/BC/Wallace. Are you sure they have invested their couple of Bungalows in those places ? If not, they are not invested in Chennai. Period. How come they are wealthy and connected but do not know the best kept secret of wealth creation ?

    Brand new apartment available in Ceebros, Kairali in Nageswara Road , Nungambakkam - ~1600 sqft for 2.6 crore was on classifieds by the builder. Looking from the price it must be from a 'Low Street'.


    Yes they tend to invest in vast tracks of land in villages outside their town situated on Highways,they use them for future factories,warehouses, Collages, Residential schools etc etc.

    Yes, Small percentage of their assets (10% - 20%) gets invested in acres of lands outer suburbs of Chennai. They tend to have couple of house/bungalows in Chennai.

    They do not prefer flats or Villas. I am yet to see a seriously big wig from regional TN to buy a flat or Villa.

    Acres of agri lands are easy to convert black to white.

    I am talking from personal knowledge of few big business an politicians from Erode, Salem, CBE, Shivakasi, Viruthunagar & Tuticorin.

    They are conservative guys, they believe in land. Flats, Villas are not in their league.

    They live in big houses in their towns. They like their privacy.

    You can see that with chetinad Group, Lakshimi mills groups, PSG group, Rajashri group, Standard fireworks group, VMM group, PRP group, RMK group, Jayavilas group,

    Same with politicians.

    Most people are well aware of their investments, I do not want to list it.
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