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Property Price Trends in Chennai

Last updated: 4 weeks ago
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  • Re : Property Price Trends in Chennai

    Thanks K11 for your prompt response. Any idea what the latest market value of land in this area is?

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    • Re : Property Price Trends in Chennai

      Originally posted by ferret View Post
      Thanks K11 for your prompt response. Any idea what the latest market value of land in this area is?
      That will not be easy, varies street by street and depends on many factors. Check out ads and contact brokers saying you want to buy to get an understanding of list prices.

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      • Re : Property Price Trends in Chennai

        Originally posted by ferret
        I need advice on how best to avail of the quoted rates. Ours is an apartment complex (G+4, plot size 3 grounds) of 15 flats of various sizes and a few garages, bang on the convergence of Adyar, Santhome, Mandaveli, off Greenways Road, on a 30' road. It is over 25 years old and some of the residents want to sell if they get real good rates and some want to rebuild considering the worth of a new apartment here.

        1. How much can we expect to get per apartment (GV of land here is Rs.16000) if we sell?
        Why sell the raw material when the final produce is so easy to sell and not too difficult to make?

        For the size of 3 grounds, there are too many residents which can prevent maximizing the value. With premium FSI(20%), 15000-16000 sqft of total saleable area is doable. Can make it in to 10 3BHKs of size 1500 sft or 7-8 large size units depending on how you want to position based on the locality. Anything less than 1500 sqft to remain equitable to existing owners can prove to be a value killer and few will have to give up. You need to compensate them adequately to give up.

        This has the potential to realize total sale value of 30-35 C. 2C is what is needed to pay for premium FSI (assuming 20%). Even at Rs 3000 psft construction cost, building cost cannot exceed 5C.

        Selling the land is the easiest and quicker option which needs to be resisted. Do the eval on how much money will be left on the table before you decide.

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        • Re : Property Price Trends in Chennai

          Originally posted by maverick007 View Post
          Selling the land is the easiest and quicker option which needs to be resisted.
          I think otherwise. Selling should be high on the list.

          If you look at what @ferret as said.

          3 Grounds - 7200sqft land - @1.5 FSI the existing structure is 10,800sqft has 15 flats - flat size is 720sqft.

          The flat sizes are small, not all might be in upper middle class. I am not sure if all the residents can cough up the money for construction itself. Even if they all build they will again get only a 2-bhk, with not much increase in size.

          If the building has illegal units and units with lesser UDS or no UDS, it is a lot of headache to deal with the residents. I feel this is a high probability.

          I do not think this building is a easy case for redevelopment.
          If the number of residents (shares) reduces then it might be easier. For that atleast 5 owners should sell and the remaining should have the money to pay them off.

          I kind of advise selling it off to avoid the hassles.

          The plot should go for 14-15C if the new flat rates in the area are 20K psft.
          If the new flat rates are 15Kpqsft, the land will go for 10C.
          Each owner will get 65L-90L approx depending on the sale price.

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          • Re : Property Price Trends in Chennai

            The point of the discussion is on how to maximize value. Not on whether they come together for a consensus. Assuming they come together, what options give them the best bang for the land.

            Originally posted by k11
            3 Grounds - 7200sqft land - @1.5 FSI the existing structure is 10,800sqft has 15 flats - flat size is 720sqft.

            The flat sizes are small, not all might be in upper middle class. I am not sure if all the residents can cough up the money for construction itself. Even if they all build they will again get only a 2-bhk, with not much increase in size.
            You missed his point on 15 flats of various sizes. Let us not preclude and rule out certain options with out knowing their financial position. For good decisions, key is to explore all the options and shoot them down in the order of least viable and get to the best one.
            Originally posted by k11
            I do not think this building is a easy case for redevelopment.
            Let us not question the premise and ferret has not shared all the details to make such inference.
            Originally posted by k11
            I kind of advise selling it off to avoid the hassles.
            It is better to know what the hassles are, before trying to take a easy route of selling it. You are making too many presumptions with ferret not having shared many details.
            Last edited January 2 2014, 08:45 PM.

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            • Re : Property Price Trends in Chennai

              Maverick 007 and K11, thank you both very much for your suggestions and for pointing out the pros and cons of various options open to us. Yes, the flats are of various sizes. Speaking for me personally, I would like nothing better than to continue to have a house in this area and would go in for reconstruction (unless I get a better and bigger apartment even if the location is a bit farther away), but getting people on board one way or the other is going to be a Herculean task. As for the land price, our building is close to Real Value Czar’s. Only 5C max per ground for this area? Correct me if I am wrong, but even Anna nagar, I understand, commands this price?

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              • Re : Property Price Trends in Chennai

                CMDA deadline

                for the 200 + plots planned to be sold by CMDA ththere were over 2 lakh applications that came in
                Maraiamalai nagar was not cheap 726 rs a sqft
                still applications poured in, should be a decent indicator of demand
                1000rs NON refundable application fee was charged

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                • Re : Property Price Trends in Chennai

                  Apartment sales dip 33% in Chennai

                  ToI news 10/01/14

                  Negative sentiments prevailing.

                  Inventory of unsolds hit 40%

                  35% drop in new launches.

                  33% drop in sales

                  Central Chennai maximum fall of 49%
                  West Chennai 38% fall in sales.
                  South Chennai 25% fall in Sales.

                  Suburbs offer highest potential for asset appreciation.

                  Current rates:

                  Pallavaram - Thoraipakkam = 5500 to 6000

                  Porur = 4700 - 6000

                  Sholinganallur = 4700 - 5250

                  Nolambur = 6200 - 6400

                  Comment


                  • Re : Property Price Trends in Chennai

                    Real estate in 2014: Will the asset bubble inflate further or will it burst? | Firstpost

                    Chennai, though touted as one of the best performing markets today, has inherent issues of its own. The improvement in performance stems from the fact that the city is expanding at a fast pace. When one sees the market from an efficiency point of view, there are various lacunae: The month’s inventory still remains quite high and the prices have surged over the last couple of quarters. However, the secondary market correction has already begun in Chennai since the past two quarters.

                    Read more at: Real estate in 2014: Will the asset bubble inflate further or will it burst? | Firstpost
                    I say Govt should increase property taxes.
                    That will automatically start bringing down the prices or keep demand in check with supply. This will also bring much needed revenue to Govt. Stamp duty is one time fee, they need to get recurring income out of this demand.

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                    • Re : Property Price Trends in Chennai

                      Originally posted by Economist View Post
                      ToI news 10/01/14

                      Negative sentiments prevailing.

                      Inventory of unsolds hit 40%

                      35% drop in new launches.

                      33% drop in sales

                      Central Chennai maximum fall of 49%
                      West Chennai 38% fall in sales.
                      South Chennai 25% fall in Sales.

                      Suburbs offer highest potential for asset appreciation.

                      Current rates:

                      Pallavaram - Thoraipakkam = 5500 to 6000

                      Porur = 4700 - 6000

                      Sholinganallur = 4700 - 5250

                      Nolambur = 6200 - 6400
                      Eco/Sraj/Others who have checked the market recently..do you find sellers willing to negotiate? I dont find anyone coming down from their high pedestal though there has been no sales at all in the past 6 months or so.

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