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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  • Price correction, discounts and freebies from Chennai's realty companies to lift up sales


    For investment to work, investor has to 'sit tight' and manufacturer has to 'churn' more produce with the same capital to have more profits. Unfortunately, what we see in the Real Estate industry is the reverse of the above. Builders' sit tight and investors rarely 'sit tight' and get impatient.

    Above article shows that it is finally dawning on the builder that 'sitting tight' will not work and they need to 'move' the produce sooner. IT Dept enforcing the act on making them pay tax on unsold inventory is also making them rethink on 'sit tight' strategy which is working against them.
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  • Worrying signs: The end game in Indian real estate might just have started

    This specifically talks about Mantri Developers who has promised 26% returns! Kindly make yourself aware of such traps!

    RE industry which is undergoing tremendous corrections seems to be heading for further corrections if Builders unable to raise funds and complete projects. Waiting seems to be the best approach at this point in time for new comers!
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  • Originally Posted by Ramchi
    Worrying signs: The end game in Indian real estate might just have started

    This specifically talks about Mantri Developers who has promised 26% returns! Kindly make yourself aware of such traps!

    RE industry which is undergoing tremendous corrections seems to be heading for further corrections if Builders unable to raise funds and complete projects. Waiting seems to be the best approach at this point in time for new comers!


    Nice article. some lines that caught my eyes that makes a lot of sense. particularly the last line(see bold texts below), hats off to the Author. rare to read such articles.

    "Many real estate companies are sitting on a lot of unsold homes. If the lending to commercial real estate by banks continues to grow at a slower pace than the overall lending then the real estate companies will be forced to cut prices on their unsold homes.

    This will happen because the funding of real estate companies will slow-down or dry up and they will have to generate money from somewhere. This money will be needed to pay off past debt as well as complete existing projects.

    To conclude, two major sources of funding for real estate companies, bank loans and new project launches are drying up. The third major source, black money, still remains. For reasons only best known to the government, it has chosen to concentrate totally on foreign black money and not do anything about the domestic black money, a lot of which ends up in real estate. It’s time the Narendra Modi did something about the domestic black money as well, in order to make real estate in this country more affordable.

    Why should only those with black money be able to buy homes? What about the others?"
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  • HC slams Villupuram cops for inaction against land grabbers

    CHENNAI: Slamming the Villupuram police for their reluctance to proceed against land grabbers despite judicial orders, an exasperated Madras high court said: " If this is the way to conduct investigation, then definitely people will lose faith in the system and will try to resort to extra-judicial methods."

    Justice P N Prakash made the caustic observations and then summoned then district superintendent of police Vikraman, who is at present SP, Tirunelveli, to appear in court on July 13. " It is really unfortunate that because of the acts of some of the police officials, this kind of situation is spreading in society nowadays," the judge said. The case pertains to a complaint lodged by M Kannan of Melpettai in Tindivanam, alleging that police had not registered a case despite his complaint that some people tried to grab the property purchased by his wife in a court auction. He then came to court and obtained a direction asking police to register a case.

    As, despite registration of an FIR, no serious investigation was carried out, he again filed a petition in the high court for transfer of investigation to the CB-CID.

    After the transfer of investigation, instead of summoning the suspects for inquiry, police continued to call the complainant/petitioner to the police station and wait for hours.

    As police failed to follow the court order in letter and spirit, Kanan filed a contempt petition. Justice Prakash, coming down heavily on the manner in which police conducted the investigation, directed Vikraman to appear in person before the court on July 13.

    " This court, not satisfied with the investigation, directed the Villupuram superintendent of police to handover the case to the deputy superintendent of police, district crime branch, Villupuram. The various status reports filed by the DSP reveal that he is no better than the original investigating officer."










    HC slams Villupuram cops for inaction against land grabbers - The Times of India
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  • Can't sell can't buy!

    I am also one those who lost the RE bus ride from 2000-2008

    Finally bought a 2BHK,1000sq.ft builder floor apartment at a peak price of 42 lakhs(at least, I thought at that time) in Arumbakkam but (walkable from CMBT) due to pressure from family.

    New builder floor apartments nearby are quoting 90L to 1C. But another apartment owner in the same building could not sell his property for 90lakhs ( he bought at the rate of 70 lakhs in 2010). Still it is unsold for a year. people are ready to buy at only 65 to 70 lakhs as of now :). He is renting it out at 18K/month


    Now, we wanted to move to a GC . Was looking for flats in West Mogappair. 3BHK cost in just handed over GC is 1 to 1.2C. There is no scope for negotiation even though many flats are available. Even resale is at that price and no one is willing to come below that.

    If the apartment in the vicinity of CMBT is worth only 65L, how can I pay 1.1C for W.Mogappair ( though it is a GC with amenities).

    So, we have decided to rent a brand new BHK 'worth' 1.1C there( several options available) at 17K(+3K maintenance) and rent out our flat. (Another landlord quoted 23K and when we went there found several options for 17K itself)

    Moving there next month. Already paid the advance.

    Interesting times. Can't sell can't buy.
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  • Originally Posted by krishaqua
    Now, we wanted to move to a GC . Was looking for flats in West Mogappair. 3BHK cost in just handed over GC is 1 to 1.2C. There is no scope for negotiation even though many flats are available. Even resale is at that price and no one is willing to come below that.

    If the apartment in the vicinity of CMBT is worth only 65L, how can I pay 1.1C for W.Mogappair ( though it is a GC with amenities).


    Answer lies in another part of your post - given below. Builder quoted prices mean nothing unless backed-up by resale prices. Those who have apartments for resale can't digest the shocking "asking price" and hold onto them hoping RE market would improve someday to match their expectation.

    Just like the Arumbakkam owner expecting 90L for his resale apartment, West Mogappair owner expects 1.2C. Neither of them are likely to get offers matching their expectation. Question of who blinks first...

    Originally Posted by krishaqua
    But another apartment owner in the same building could not sell his property for 90lakhs ( he bought at the rate of 70 lakhs in 2010). Still it is unsold for a year. people are ready to buy at only 65 to 70 lakhs as of now :). He is renting it out at 18K/month
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  • There is a pervasive perception that if a seller do not reduce prices, prices will not fall and more he thinks that others will do the same and hence the price will hold - it does work to an extent especially in a illiquid market like RE.

    All it takes is one seller to think that let me reduce the price where the absorption is and the rest can be history - increasing number of sellers at some point in time can make it possible! Some of the stubborn markets have shown that it is possible - check this link and has some interesting facts of the past!
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  • Interesting times. Can't sell can't buy.

    :)

    :)
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  • Originally Posted by krishaqua
    I am also one those who lost the RE bus ride from 2000-2008

    Finally bought a 2BHK,1000sq.ft builder floor apartment at a peak price of 42 lakhs(at least, I thought at that time) in Arumbakkam but (walkable from CMBT) due to pressure from family.

    New builder floor apartments nearby are quoting 90L to 1C. But another apartment owner in the same building could not sell his property for 90lakhs ( he bought at the rate of 70 lakhs in 2010). Still it is unsold for a year. people are ready to buy at only 65 to 70 lakhs as of now :). He is renting it out at 18K/month


    Now, we wanted to move to a GC . Was looking for flats in West Mogappair. 3BHK cost in just handed over GC is 1 to 1.2C. There is no scope for negotiation even though many flats are available. Even resale is at that price and no one is willing to come below that.

    If the apartment in the vicinity of CMBT is worth only 65L, how can I pay 1.1C for W.Mogappair ( though it is a GC with amenities).

    So, we have decided to rent a brand new BHK 'worth' 1.1C there( several options available) at 17K(+3K maintenance) and rent out our flat. (Another landlord quoted 23K and when we went there found several options for 17K itself)

    Moving there next month. Already paid the advance.

    Interesting times. Can't sell can't buy.


    Super like your phrase "can't sell cant' buy".

    In every price range there is oversupply of housing. For that reason alone prices can drop. Let's see how things turn out.
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  • 70,000 crores of unsold inventory

    ....Most observers expect a further slide in property prices in most markets. “Prices have to fall to improve affordability and stimulate demand, but it will be spread out. We expect a 20-25 per cent fall in home prices over the next two years,” said Pankaj Kapoor, managing director of Liases Foras.

    According to him, the bulk of the price correction will occur as time correction--no price rise for a few years--because builders, banks and the government cannot afford a sudden and large fall in prices. “The authorities will not allow a sharp fall in prices owing to its impact on banks’ balance sheets and the damage it can cause to home owners,” he added.

    --------------------
    I expect the Chennai RE to tow the similar path - probably 5-10% as a price correction but much more through time correction. Unlike other metros, Chennai has traditionally had lesser speculative interest and hence the natural tendency is for the owners to sit tight. After a year or two of sitting tight, it may dawn on some sellers it is a different market than what they thought - cost of carrying the asset can invoke some thinking and 'throwing in the towel' by some is likely by that that time.

    It is up to the buyers not to blink and ride this time correction smartly with out giving in to sellers stubbornness. Sellers' behavior has been shaped by years of out performance of RE and their continued perception of RE as la-la land is understandable. Buyers have no reason to rush or hurry as political climate/governance is pathetic and shows no signs of improvement. Goodness , if any, of Modi Govt is unlikely to rub on us due to opposing stance of our Govt in sickness (sic!).

    It is a perfect storm - prices exceeding affordability, questionable growth and no new initiatives to woo fresh investments by the local state Govt, sentiment towards hard assets beginning to wane, black money law is keeping some heavy rollers at bay.

    Patience pays.
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  • Originally Posted by maverick007

    It is up to the buyers not to blink and ride this time correction smartly with out giving in to sellers stubbornness...

    Patience pays.

    This applies to people buying property for investment. Not for those who buy for necessity.

    For example, where I live, prices fell since last quarter of last year. Prices are expected to go down next year by 8% to 14% more. But we chose to buy a property this year, due to circumstances. Some reasons which cannot wait are (1) wanting to be near kids' school, (2) near workplace, (3) near specific amenities for certain reasons, etc.

    Its about location, location, location.
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  • This applies to people buying property for investment. Not for those who buy for necessity.


    Not necessarily. As long as necessity can be addressed with out buying, people have choices. Buying gets you the title or ownership of the asset. Living experience can come with out taking ownership. It is an easy decision for some and tough for others. Its a choice one makes depending on how they manage and what they see as unfolding.

    I know several who have a need for their own home are deferring the decision. They did not make the necessity to turn in to compulsion. If somebody has compulsion to buy, they have to buy. Let's leave it at that.
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  • Originally Posted by maverick007
    I know several who have a need for their own home are deferring the decision. They did not make the necessity to turn in to compulsion. If somebody has compulsion to buy, they have to buy. Let's leave it at that.
    I agree. I suppose those who can afford convenience, at current prices, will go for it. Those who cannot, will prefer to wait.
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  • I suppose those who can afford convenience, at current prices, will go for it. Those who cannot, will prefer to wait.


    Even those who can afford do and can wait - several of whom I know, can afford, but chose to wait. They have decent lifestyle and convenience of what the ownership could afford - all with out owning and compromising. Perhaps, they may see the risks in the coming years far outweigh the incremental benefit, if any, the ownership can bring.

    Those who have compulsions for one reason or the other, need not wait. In my opinion, compulsion itself is very subjective. For instance, take suicide - not everyone in the same situation takes the same decision. No, I am not saying buying is suicidal but my stress is on how people react differently to the same situation.
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