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Property Price Trends in Chennai

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  • Re : Property Price Trends in Chennai

    Request you to stop posting with lot of stars . When replying back , it creates much issues through iPad especially.


    Originally posted by bala_animation View Post
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    Please Don't Re-post ya it is Boring, if you can post the Fair pro 2013 rates. I have read this post 3 years back.

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    • Re : Property Price Trends in Chennai

      Announced GV from state govt and TDS tightening from Central govt is putting a cap on Price to be maintained . No question of reducing or inflating unlike 2003-2011 period .

      Smart money will chase smart places and colored one will get confused at last unless FM announced rollback before the much awaited election run up period.

      Comment


      • Re : Property Price Trends in Chennai

        understood. thank you.

        Originally posted by nabishek View Post
        This was done by a local Real Estate magazine called "Chennai Realty".
        Source : CHENNAI REALTY - Chennai's No.1 Portal for Real Estate News

        I think the actual market value lies somewhere in between the rates quoted for budget and premium apartements. This data is collected from 2012, I suppose so it may have the price of end 2011 too included which can explain the variance and as usual adyar will include areas like Pallipattu and besant nagar will include vannanthurai etc.For analysis, It will be safe to assume budget and premium prices quoted refers to prices from small builders/ongoing projects and big builders/future projects.

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        • Re : Property Price Trends in Chennai

          Hi Friends,

          In the last few months we are witnessing a sudden sluggishness in the market.It is also reflecting in some of the recent discussions we are having. Properties costing more than 50 lakhs are not moving at all. We are also seeing builders struggling with sales where they have over-priced..Many are converting flats to smaller sizes, launching EWS/LIG flats now, taking pre-launch for pipeline projects in the range of 3000-4500/sqft.Even reputed builders are willing to negotiate upto 500-1000/sqft and offer freebies like free parking, 20:80 scheme etc.. Realty websites have deal of the day offers. Many projects that were to be launched in good locations have been postponed without any reason. The focus in advertisements and by builders seems to be only suburbs.

          There are couple of reasons that come to my mind

          1. No Clarity about 1% TDS on properties worth more than 50 lakhs.
          2. Relaxation of norms for foreign funding in low cost housing.
          3. Inordinate delay in approval process from CMDA and Banks.
          4. Liquidity crisis for the builder and High Construction Cost
          5. No interest from the earlier target segment of NRI/Expats/Businessmen/outsiders.
          6. Over-Supply and Resale inventory competing with new launches

          Are we looking at the return of affordable housing? will you buy in one of the projects offering bargains considering people who did it in 2009 are sitiing on a handsome profit? will it lead to a price correction in apartment prices at established localities in near future? Requesting members to share their views.

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          • Re : Property Price Trends in Chennai

            Though there is a overall slowdown. Demand for prime properties and buildings in city is still crazy.
            I was shocked to hear people lapping up TNHB Flats for nearly 1.5C in the city. Even resale units are getting lapped up especially if the seller is serious. Though land prices in city has cooled down and even the apt psft price is negotiatble in some projects. Sales are still happening in city but not necessarily at crazy prices or at asking prices.

            When we get out of the city, we do clearly see the some GCs are having issues moving the flats. Prices are stagnant and still people are not showing up.

            Home Loan Rates are high, EMI is big load.
            Rental yeilds are low - almost everyone is buying as rental property - very few end users.
            Builders not making enough 2-BHKs - 3-BHKs are out of the sweet spot (around 50L) and sometimes often costs 1C+ in faraway areas.
            Where are the starter homes - 2BHK are bread and butter for decades. 1 BHK/EWS is not a end user segment .
            Bad floor plans on many projects - restrictions to modify is also a small concern.
            Infra is still weak - buyer prob have realised it will take time - 6 yrs have passed in the GC boom in OMR - no rush to be early adopter.
            People are also apprehensive about maintainance costs. More efficient low maintnance cost GCs are needed.
            Rising Petrol/transport costs - social infra retail need to be closer - public transport has become even worse.
            Rentals are still cheap even in the city - First time buyers need not hurry.
            People also think stangnation will occur and see devlopers struggle - prepared to wait it out than jump in.
            NRIs - RE in western countries US/UK, Middle East, Sing/HK/Shanghai are providing alternatives with cheap loans.
            Currency rates, economy, etc also scare them to a smaller extent.
            New supply not coming on to the market - people are waiting for new names - new projects
            Approval issues/Developer Financing/ etc causing delays scaring customers.
            Old projects still not complete, still are like zombies scaring even more people.
            High downpayment on some projects.30-40% down has become norm.
            Extra charges and hidden costs are high making the final price far higher than advertised costs.

            Many more. This is what I could think of.

            Market will be slow for atleast another year or so. It would be buyers market - we can put money in the bank and wait for the right project at the right price.
            Last edited July 4 2013, 07:30 AM.

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            • Re : Property Price Trends in Chennai

              Originally posted by nabishek View Post
              Hi Friends,

              In the last few months we are witnessing a sudden sluggishness in the market.It is also reflecting in some of the recent discussions we are having. Properties costing more than 50 lakhs are not moving at all. We are also seeing builders struggling with sales where they have over-priced..Many are converting flats to smaller sizes, launching EWS/LIG flats now, taking pre-launch for pipeline projects in the range of 3000-4500/sqft.Even reputed builders are willing to negotiate upto 500-1000/sqft and offer freebies like free parking, 20:80 scheme etc.. Realty websites have deal of the day offers. Many projects that were to be launched in good locations have been postponed without any reason. The focus in advertisements and by builders seems to be only suburbs.

              There are couple of reasons that come to my mind

              1. No Clarity about 1% TDS on properties worth more than 50 lakhs.
              2. Relaxation of norms for foreign funding in low cost housing.
              3. Inordinate delay in approval process from CMDA and Banks.
              4. Liquidity crisis for the builder and High Construction Cost
              5. No interest from the earlier target segment of NRI/Expats/Businessmen/outsiders.
              6. Over-Supply and Resale inventory competing with new launches

              Are we looking at the return of affordable housing? will you buy in one of the projects offering bargains considering people who did it in 2009 are sitiing on a handsome profit? will it lead to a price correction in apartment prices at established localities in near future? Requesting members to share their views.
              THis is very true and happening, I spoke to one of the partners of a popular builder from tambaram and he acknowledged the same , their recent launch at low 3000s was geared towards that segment as well.
              The projects at pricing over 60-70L are struggling to move
              similarly land over 72L - 3000rs / sqft for dimensions over 2400sqft is struggling to move
              Smaller extent 1200/1800 at price brackets of 1000-2000 - investment , 2000-4000 end use are still moving , actually surprisingly at faster pace, even as recently as 2 weeks back i got outbid in 2 properties, i could care less.
              One thing im observing is folks from Middle east are very active in the market good exchange rate and no real avenues for investmnet is the main reason, the working class in ME does not invest in stock or mf, 2 things they know is Gold and RE , Gold they are in shock, RE they blindly trust, so plot market in ORR GST corridor which are mainly fueled by ME buyers are still moving
              For some reason they dont come and buy in VK or OMR or Velachery road corridors , dont know why , majority is still buying in west tambaram mudichiur manimanagalm padappai mannivakkam oragadam walajahbad sriperumbudur kanchipuram etc , still trying to figure what the logic there is
              We cannot take them light as they are the #1 remitter of foreign exchange into India
              Has anyone else observed this pattern ?

              Comment


              • Re : Property Price Trends in Chennai

                Thanks K11. I also feel there will be a stagnation. It could be a good time to look for deals in premium properties if one could afford. It seems we can easily bargain 10-15%. Resale market will surely become attractive..a slow market is good for buyers..they can take time and identify good projects and need not decide in haste.

                SR - The primary reason I think is..most of them are cash buyers and since the layouts are very old in those region you mentioned, it gives the buyers ample scope to strike deals. Layout promoters like Abi Estates, BLB, VGN, Motherland etc have to be blamed..5-6 years back they camped and did several property shows in middle east and sold many plots..many who bought land with them have profitted a lot. This has created a impression on the people's mind that its the best place to buy. Many of the middle east people who I know also buy in porur,kundrathur vicinity.

                Also..the sudden spurt in demand can be attributed to new nitaqat law in saudi arabia. It seems all over tamilnadu and kerala people are anxious to know whats going to happen and how its going to affect them.

                Several NRI groups also buy at sriperambathur and GST. Areas in the north like tiruvallur, avadi, redhills are all preferred by people who have resided and are from that place. I may be wrong..but I havent seen anyone buy a land there just for diversification purpose.

                Local chennaites give lots of importance to schools and train/bus connectivity. They tend to buy in Medavakkam/Tambaram/GST areas surroundings.

                For an outsider looking for just investment, he would read only about OMR, VK Stretch in the news..It is so over-hyped, so naturally the interest is more and entry cost is very high. People from IT who intend to move there or investors who can afford are the only ones buying in that stretch. End users interest in plots are very less, its more of GC's and townships.We can find lots of other state buyers/sellers in OMR-ECR stretch.

                Comment


                • Re : Property Price Trends in Chennai

                  But the land cost in MWC area or sriperumbudur have not gone up for the past 5 years

                  Comment


                  • Re : Property Price Trends in Chennai

                    Welcome back Abishek

                    Originally posted by nabishek View Post
                    Thanks K11. I also feel there will be a stagnation. It could be a good time to look for deals in premium properties if one could afford. It seems we can easily bargain 10-15%. Resale market will surely become attractive..a slow market is good for buyers..they can take time and identify good projects and need not decide in haste.

                    SR - The primary reason I think is..most of them are cash buyers and since the layouts are very old in those region you mentioned, it gives the buyers ample scope to strike deals. Layout promoters like Abi Estates, BLB, VGN, Motherland etc have to be blamed..5-6 years back they camped and did several property shows in middle east and sold many plots..many who bought land with them have profitted a lot. This has created a impression on the people's mind that its the best place to buy. Many of the middle east people who I know also buy in porur,kundrathur vicinity.

                    Also..the sudden spurt in demand can be attributed to new nitaqat law in saudi arabia. It seems all over tamilnadu and kerala people are anxious to know whats going to happen and how its going to affect them.

                    Several NRI groups also buy at sriperambathur and GST. Areas in the north like tiruvallur, avadi, redhills are all preferred by people who have resided and are from that place. I may be wrong..but I havent seen anyone buy a land there just for diversification purpose.

                    Local chennaites give lots of importance to schools and train/bus connectivity. They tend to buy in Medavakkam/Tambaram/GST areas surroundings.

                    For an outsider looking for just investment, he would read only about OMR, VK Stretch in the news..It is so over-hyped, so naturally the interest is more and entry cost is very high. People from IT who intend to move there or investors who can afford are the only ones buying in that stretch. End users interest in plots are very less, its more of GC's and townships.We can find lots of other state buyers/sellers in OMR-ECR stretch.
                    Abishek. Long time no hear from you.

                    As usual very balanced, comprehensive, data-rich posts!

                    Will we be seeing more frequency from you going forward?

                    cheers

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by lovebirds43k
                      But the land cost in MWC area or sriperumbudur have not gone up for the past 5 years
                      Above is true only if you bought from *layout promoters* who spent money on Thotta Tharani arches for entrance. As always, it is what is *inside* that counts and will sustain. People who bought from the old layouts on resale has done well doing anywhere from 60-90% in the last 5 years in the very same area. Not a great bang-busting returns but nothing to sneeze at.

                      It is easy to see why: the resale prices (DTCP approved) around the new launches at that time were quoted at 50% of the new promotion prices and the shine/gloss of new promotions has worn off now and they have to compete with the old layouts and hence the price normalization. What is surprising is, this fleecing is so blatant and apparent and those promoter's still do launches - shows the confidence and stronghold they have on the gullibles !!
                      Last edited July 4 2013, 07:38 PM.

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