Announcement

Collapse
No announcement yet.

Property Price Trends in Chennai

Collapse
This is a sticky topic.
X
X
Collapse

Property Price Trends in Chennai

Last updated: 3 weeks ago
2452 | Posts
  • Time
  • Show
Clear All
new posts

  • Re : Property Price Trends in Chennai

    Promoters started facing tough time. Orchid Springs offering 12 lacs off for Italian brand furnished air condition, wardrobe, modular kitchen ready to move apartments. There are about 3000 unsold medium range flats around Ambattur(source a small promoter who is sitting idle with three plot area for development, waiting for existing inventory to sell). OMR should be must be much worse, but the big builders holding their breath.

    But certain locally reputed builders medium projects are still moving at moderate budget in prime localities.

    High investment at this point of topi me in newly launched/under development projects looks not a wise decision.

    Comment


    • Re : Property Price Trends in Chennai

      http://www.joneslanglasalle.co.in/Re...se_Mar2014.pdf

      Chennai appears to be performing well overall when compared with other major Indian cities.
      Attached Files
      Last edited March 20 2014, 07:44 AM.

      Comment


      • Re : Property Price Trends in Chennai

        Battling Black money in Real Estate

        Article quote:
        Despite that, if the gap between the two rates is reduced, the proportion of genuine buyers with clear, accounted money entering into transactions will increase significantly. It may reduce transaction velocity but it also reduces the incidence of black money being parked in real estate.

        Another downside of this increased 'velocity' of buyers(aka momentum or movement) in areas with higher GV-MV differential is that prices become irrational. Hard earned salary sourced capital and people who take loans to get in to this 'high velocity' areas, should steer clear and save their money. Velocity can come to standstill for no fault of yours as soon as GV-MV differential reduces. GV-MV differential is not a life-long attribute for this area and I know of many areas where the prices moving at 'escape velocity' came to standstill and poor buyers who joined the party at the peak of the GV-MV differential got suckered.
        Last edited March 22 2014, 11:03 AM.

        Comment


        • Re : Property Price Trends in Chennai

          Price Trends in Chennai

          Originally posted by maverick007 View Post
          Battling Black money in Real Estate

          Article quote:
          Despite that, if the gap between the two rates is reduced, the proportion of genuine buyers with clear, accounted money entering into transactions will increase significantly. It may reduce transaction velocity but it also reduces the incidence of black money being parked in real estate.

          Another downside of this increased 'velocity' of buyers(aka momentum or movement) in areas with higher GV-MV differential is that prices become irrational. Hard earned salary sourced capital and people who take loans to get in to this 'high velocity' areas, should steer clear and save their money. Velocity can come to standstill for no fault of yours as soon as GV-MV differential reduces. GV-MV differential is not a life-long attribute for this area and I know of many areas where the prices moving at 'escape velocity' came to standstill and poor buyers who joined the party at the peak of the GV-MV differential got suckered.

          Very true observation and ponmar is going to be an example for this post April 2014 revision ....
          I also bought recently in a layout whose GV is 500 RS where named nearby layouts such as MM vamanan estates are selling at 2000 RS a sqft posted by a few buyers recently. The large differential keeps acquiring cost low but one has to keep in mind when the GV raises the transaction rates just drops and the momentum vanishes and speculators flee.

          Comment


          • Re : Property Price Trends in Chennai

            How does 70:30, 80:20 kind of schemes works?

            For example I received a mailer from a Mumbai builder on 70:30 scheme, he says pay 30% now and balance on possession. No bank tie up required, I am wondering how does it works for the builder and the buyer?

            Mailer:

            30:70 Scheme. Only 1 day left!

            Pay only 30% now and 70% on possession.

            This offer is applicable on select apartments till March 25th 2014 only. With this, now you have better flexibility of making payments for your dream home.

            PAY 30% NOW
            70% ON POSSESSION
            NO BANK TIE-UP REQUIRED*
            OFFER ON SELECT APARTMENTS
            HURRY! OFFER CLOSES ON MARCH 25TH, 2014

            **Limited period offer. *Conditions apply

            Exclusive gated community • Spread across 29 acres • Clear land title • Amidst approx. 14 acres of open green landscape in the heart of Mumbai • Private roads • Luxury residences • Apartment designed to allow privacy and exclusivity • Separate staff entrance • Floor-to-ceiling glass • Concierge and travel desk • Mini theatre • Golf-putting green • Swimming pool • Jogging track • Discover an unending list of privileges when you visit us.

            Comment


            • Re : Property Price Trends in Chennai

              Originally posted by Economist View Post
              Absolutly incorrect.

              I know Kilpauk, Annanagar East, West, Extention and Mugaperu for over 25 years.

              1. Kilpauk - Is,Was & always will be expensive than Annangar East & Shenoy Nagar. Kilpauk Was a VIP area since 1940s.

              2. BTW the pricing you have quoted for Annanagar East & West are way too low for current market reality.

              3. Annanagar East ( Area before rountana) at 12K is not reality mate. You would be lucky to get at 16K

              4. Real Annanagar West (area before 100ft Inner ring road) is going at 14K new projects from local builders. Shanthi Colony at 16K new projects (Color homes)

              I am speaking to few builders, JV partners & owners in the area on a montly basis.

              your pricing is way too out -of-sync to market movement.
              What a change now these price in the same market look high given the market condition
              RE overpriced still fancy then 4% yield is must anything less is overpriced

              Comment


              • Re : Property Price Trends in Chennai

                ^^

                Context??


                My post you have quoted appears to be many months old,wouldn't it be helpful to explain the context around that quote so readers (including me) can understand what you are trying to say.
                Last edited March 28 2014, 05:11 PM.

                Comment


                • Re : Property Price Trends in Chennai

                  This was the post I was responding to in June 2013.

                  Originally posted by k11 View Post
                  What I have observed is Kilpauk had a tremendous run.
                  Kilpauk was at 6500-7500 even till early 2010.

                  Today, Kilpauk is trading at 16K for even mid grade projects.

                  Kilpauk has definitely overtaken Anna Nagar East. Kilpauk is 25-30% more expensive than Anna Nagar, it used to be bit less or similar to Anna Nagar East before. Egmore is the same, but supply in Egmore is very less becasue of limited residential areas. Purasawakkam also is going up.

                  Anna Nagar E has 12K price. There is one luxury project (Ozone Gardenia) at Anna Nagar at 15K. Anna Nagar West has 8-9K price on Avg. MetroZone project is still trying to move the last few units at 8.5K now. They were trying to sell at 6.5-7K all throughout 2009-10. There is not much movement in Mogappair either.
                  West Chennai has not seen much movement in the last couple of years.
                  Last edited March 28 2014, 05:30 PM.

                  Comment


                  • Re : Property Price Trends in Chennai

                    Originally posted by Economist View Post
                    This was the post I was responding to in June 2013.
                    Actual I was saying in general the market is down especially luxury market with so much stock coming up in this segment stock we have not seen during bull run in chennai. Is the supply too much too late if this segment price band is 16000-25000 looks very very high price given the present market condition

                    I see a the bear phase in RE will be long and slow minimum 5-7 years period
                    RE overpriced still fancy then 4% yield is must anything less is overpriced

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by Septaa
                      I see a the bear phase in RE will be long and slow minimum 5-7 years period
                      Likes of the apartments at 16000 Rs psft with rental yield of Rs 30 psft (just to quote an example) is simply an expensive capital value which is highly unsustainable. Rental needs to catch up to at least 3% for the hardening interest rate environment. That is quite of lot of adjustment in this environment and only way it can attain is by stagnation in capital values and current rental values moving up with inflation to do the catch up or phenomenal increase in income levels when Rs 40 psft rental becomes affordable overnight. No easy way out this time.

                      Comment

                      Have any questions or thoughts about this?
                      Working...
                      X