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Property Price Trends in Chennai

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  • Re : Property Price Trends in Chennai

    Originally posted by Love4land View Post
    Ramki, all along you have been very firm in your belief that people who buy apartments are those who want to save time and money. I agree with former, but not latter. It is not true that people who are short of funds are the ones who buy apartments. Care to explain why these people buy apartments?



    Flats in premium Adyar project go for Rs 5 crore - Times Of India
    This is a old news...2008!!

    Comment


    • Re : Property Price Trends in Chennai

      Originally posted by Love4land View Post
      @SR,

      You can't compare PBV apartment with ponmar or V-K plot. PBV should be compared with plots or localities of equivalent ticket size.
      Why not?

      It is just like you compared:

      1. an Unapproved troublesome Classic layout with Elcot Ave Flats.

      2. 15 Year old TNHB Sithalapakkam layout that does not have one flat/MSB project with 5 Year old Sholinganallur Layout.

      and you said "I cant accept that excuse"

      such orange to Jackfruit comparisions were OK when it suits you.

      How to forget your famous Guideline value comparison to compare growth of an area. That is legendary stuff.

      Why not some invester spend 1C and buy 4grounds in Ponmar or Royapa in view to build a small group of flats in the future and sell.

      Why should 1C person have to buy 1G in Thorapakkam?
      Last edited June 13 2013, 11:28 AM.

      Comment


      • Re : Property Price Trends in Chennai

        Originally posted by Economist View Post
        Why not?

        It is just like you compared:

        1. an Unapproved troublesome Classic layout with Elcot Ave Flats.

        2. 15 Year old TNHB Sithalapakkam layout that does not have one flat/MSB project with 5 Year old Sholinganallur Layout.

        and you said "I cant accept that excuse"

        such to Jackfruit comparisions were OK when it suits you.


        Why not some invester spend 1C and buy 4grounds in Ponmar or Royapa in view to build a small group of flats in the future and sell.

        Why should 1C person have to buy 1G in Thorapakkam?
        Firstly larger sized plots are difficult to sell, SR will agree with me.

        Secondly buying 4 different plots at same time is very hard. You need to have 4 different people working on the ground at same time or you must have exceptional multi-tasking ability and dedicate 100% of your time on this.
        If you are buying 4 different plots in 4 different localities to diversify, it becomes even more monumental.

        Comment


        • Re : Property Price Trends in Chennai

          Secondly buying 4 different plots at same time is very hard. You need to have 4 different people working on the ground at same time or you must have exceptional multi-tasking ability and dedicate 100% of your time on this.
          Eco, you should be careful in using figurative speech (Say 4 or 6 grounds) and look at above..LOL. It is good that you did not say 10 Grounds....you need to orient differently to have your point heard . Objective format questions can help !
          Last edited June 13 2013, 11:24 AM.

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          • Re : Property Price Trends in Chennai

            Originally posted by SRajagopalan View Post
            Im surprised you are shocked to hear this, its been going on for years, first time i heard was in Springfield-Sharjapur Rd, Sadly the most exploitation is done by HOA/Presidents from TN, like it or not.
            Its a clear path, when the project is announced -early entry,form a google/yahoo grp, become active make site visits post updates, engage with builders and all along keep the group updated
            these folks move in first have edge over others, so in a better position to run for the post and get elected.
            they get so many inkind help from security firms doing the watchman contracts, electrical service contracts every where.
            now lets talk about numbers
            take prestige BV in chennai as an example -- rough numbers
            # of units = 2400 - appx
            Total sqft sold = avg it out = 800sqft per unit = 1920000Sqft total
            At 3Rs per sqft Monthly revenue = 57.6Lakhs
            Yearly revenue = 7C appx
            You be the judge now,
            I know folks who literally cover more than 50% of their monthly EMI through their post some even at 100% yet thats drop in bucket when you see 25 to 30K in a 58L revenue.
            We all are good in accounting boss, its nothing to hide in line items.
            But the real shock is there is a system of practice that goes behind in securing such positions
            L4L's example of his dad and yes my dad lives in an apartment and runs all maintenace work, electrical, motor, sump pump etc is good for smaller developments with # of units in 100s ,
            but when we talk about 1000unit+ MSB the old retired thaathas are not going to cut it
            Even though I don't dispute figures, but it is gross exaggeration. Generally maintenance- managed block and association wise and the numbers we are talking isn't huge as projected. Let's say 100 flats in a block with average maintenance of 2k/flat works out 2L/month.

            Solution is simple- way forward it will be professionally managed / concierge services. Let's look at solution rather than write-off the model. Whether we like it not- it is going to be the way forward and will be optimised. Secondly we don't value time, do we? One of the major point for leakage- we don't pay for services, even if we do, not hourly and demand accountability.

            Comment


            • Re : Property Price Trends in Chennai

              I'm trying to finalize my property value. Its in Villivakkam and on Thirumangalam road ( on the road itself). Its just 100 metres away from Anna Nagar railway station.
              Its a 2BHK of 980 sft in a gated community and is 11+ years old. I've been hearing different rates from brokers and friends ranging from 5K to 10K per sft (which is a huge variation). I tried to find the reason for the huge difference.
              This is what I heard from people quoted around 5K, Villivakkam rates are sound 4.5 to 6K/sft. People quoted 10K said due to its proximity to Anna Nagar West and UDS is around 65% of the flat size, which is really huge when compared to other projects.

              Can experts through some light on this?

              Thanks in advance.

              Comment


              • Re : Property Price Trends in Chennai

                Originally posted by Love4land View Post
                @SR,

                Lets say you have 1 Cr in hand, would you buy 4 different plots in Ponmar or a single 4 ground plot in Ponmar or 1 ground plot priced 1 Cr in a different locality? I'm sure you would go for the last option right? Why, because the third option is easier to buy, manage and sell.

                While I agree localities like Ponmar and V-K road have given great returns for plots in the last 1 year, can we say the same for localities like Thoraipakkam or Madipakkam where plots are priced 1 Cr and above?

                As the ticket size increases, return % will decrease.

                You can't compare PBV apartment with ponmar or V-K plot. PBV should be compared with plots or localities of equivalent ticket size.

                To answer your question head on
                if i have 1 crore this is what i will be doing
                1 -2 grounds in Ponmar and Melakottayur
                1 ground in West Tambaram
                1 ground around kelambakkam OMR junction

                I wont pick any of the options given - certainly not the last option
                As i had said in my earlier post, buying large extent or a large ticket size property is one of the night mare i want to avoid , it was my lesson learnt.

                I never compare PBV with plot on VK, my point is though the 4800 ( my friends entry point) to 6100 ( 1300rs over 1800 sqft = 23L) is a good appreciation in the 2 year of its making. the charges around corp fund, car parking, regn charges, ST, VAT on CLP payments etc erode the gains and at the end you will have a net of less than 5L ,im not making up these numbers please refer my excel - this is from a buyer who got in at 4800.
                Im not even factoring cost of money for your payments which are calendar based and not milestone based in PBV
                In land i have multiple options but my options wont apply to you, i can settle a seller and flip, i can take a power and flip or do a sale deed in a layout where there is a vast difference between GV and selling price
                example - Ponmar = GV/SP = 700 / 1200-1400
                that creates opportunities
                The moment GV becomes 1100 here i wont speculate as it will slow down transactions
                Last edited June 13 2013, 04:51 PM.

                Comment


                • Re : Property Price Trends in Chennai

                  Originally posted by Love4land View Post
                  Firstly larger sized plots are difficult to sell, SR will agree with me.

                  Secondly buying 4 different plots at same time is very hard. You need to have 4 different people working on the ground at same time or you must have exceptional multi-tasking ability and dedicate 100% of your time on this.
                  If you are buying 4 different plots in 4 different localities to diversify, it becomes even more monumental.
                  Actually thats precisely what i did, i spaced my buys, learnt the local market made good relationships with field brokers (not office vyabaris) established trust and they work for me as they smell returns for their time invested and present deals, on top of that i have some local network who oversee them.
                  Even today when folks in this forum are discussing 1300rs for selva nagar, i get 1150-1200rs for VPnagar on 40 ft roads with excellent facing - Cruise and LL will agree these are 10% less than market price.
                  The key is the ability to consumate the transaction fast and quick and put out the need of the seller in crunch/need.

                  Comment


                  • Re : Property Price Trends in Chennai

                    Originally posted by Clairvoyant View Post
                    Even though I don't dispute figures, but it is gross exaggeration. Generally maintenance- managed block and association wise and the numbers we are talking isn't huge as projected. Let's say 100 flats in a block with average maintenance of 2k/flat works out 2L/month.

                    Solution is simple- way forward it will be professionally managed / concierge services. Let's look at solution rather than write-off the model. Whether we like it not- it is going to be the way forward and will be optimised. Secondly we don't value time, do we? One of the major point for leakage- we don't pay for services, even if we do, not hourly and demand accountability.
                    CV actually its not exaggeration its a bit of understatement, Prestige BV annual revenue will be in the tune of 7.5C, i know for a matter of fact - very close friend of mine is putting all ducks in row to run for the president post.
                    But he is genuine and wants to get into the position before crooks take over.
                    he was the president in sobha in bangalore near salapuria as well after ousting a corrupt president
                    In india we have this thing for not willing to pay for professional help on any thing, whether its financial planning, resdiential brokerage, legal check up for documents etc to name a few
                    So the association will say its only 5 hours worth of work why to pay exorbitant fees for it. as a matter of fact a few US returns from my network who did RE here went and started property management company in chennai and tried this business model, but most builder associations have their own reservations, when you go attack the owners after the first year, they are all suspicious about your intentions even though they do a piss poor job managing it.
                    So its not easy to penetrate although i have my interest in it and its a great business model to integrate People process software systems tools together and provide a packaged services for 200+ MSB for a marginal cost

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by SRajagopalan View Post
                      Im surprised you are shocked to hear this, its been going on for years, first time i heard was in Springfield-Sharjapur Rd, Sadly the most exploitation is done by HOA/Presidents from TN, like it or not.
                      Its a clear path, when the project is announced -early entry,form a google/yahoo grp, become active make site visits post updates, engage with builders and all along keep the group updated
                      these folks move in first have edge over others, so in a better position to run for the post and get elected.
                      they get so many inkind help from security firms doing the watchman contracts, electrical service contracts every where.
                      now lets talk about numbers
                      take prestige BV in chennai as an example -- rough numbers
                      # of units = 2400 - appx
                      Total sqft sold = avg it out = 800sqft per unit = 1920000Sqft total
                      At 3Rs per sqft Monthly revenue = 57.6Lakhs
                      Yearly revenue = 7C appx
                      You be the judge now,
                      I know folks who literally cover more than 50% of their monthly EMI through their post some even at 100% yet thats drop in bucket when you see 25 to 30K in a 58L revenue.
                      We all are good in accounting boss, its nothing to hide in line items.
                      But the real shock is there is a system of practice that goes behind in securing such positions
                      L4L's example of his dad and yes my dad lives in an apartment and runs all maintenace work, electrical, motor, sump pump etc is good for smaller developments with # of units in 100s ,
                      but when we talk about 1000unit+ MSB the old retired thaathas are not going to cut it

                      As per page-23 of this link, the total PBV size is 5 million sqft (Prestige has 60% interest in the JV): http://www.prestigeconstructions.com...esentation.pdf

                      So your calculations need to be slightly updated by 2.5x factor.


                      As per page-25 of this, PBV has achieved total sale of 822.8 crores so far (probably share for just the 60% JV interest of Prestige):
                      http://www.prestigeconstructions.com...esentation.pdf

                      If you compare with Q3-FY13 presentation, the sales on PBV during Q4 FY13 has been about 50 crores only.


                      Personally, I don't mind paying up to 10% of the maintenance fee for the management to run it.

                      Comment

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