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Property Price Trends in Chennai

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

    buyers vs sellers

    hello friends,

    I heard something interesting from a friend yesterday which i want
    to share with all of you.She has a half ground plot in north chennai
    close to the new Kolkota highway for which there were many buyers
    last year for which they were ready to shell out upto 18 lakhs.She
    did not sell at that time.This year when she tried to sell it recently
    there were no takers for even 10 lakhs.Seeing that the prices have come down so drastically she dedcided to buy another plot instead.However,
    she could not find any good plots on sale.It seems there are no buyers or sellers,everybody is playing the waiting game.who will win ?
    Please post your comments friends.
    regards
    unlikely

    Comment


    • Re : Property Price Trends in Chennai

      Originally posted by unlikely View Post
      hello friends,

      I heard something interesting from a friend yesterday which i want
      to share with all of you.She has a half ground plot in north chennai
      close to the new Kolkota highway for which there were many buyers
      last year for which they were ready to shell out upto 18 lakhs.She
      did not sell at that time.This year when she tried to sell it recently
      there were no takers for even 10 lakhs.Seeing that the prices have come down so drastically she dedcided to buy another plot instead.However,
      she could not find any good plots on sale.It seems there are no buyers or sellers,everybody is playing the waiting game.who will win ?
      Please post your comments friends.
      regards
      unlikely
      What you have said is the current scenario of RE market.

      There aren't many serious buyers or sellers in the market.Everyone are just testing the waters.Buyers want to see if price have become affordable and sellers are quoting higher price to check if demand has revived.

      The volume of transactions have diminished so much, that we are finding it difficult to identify a definitive trend.

      Opinion is divided on how the future of RE would be, we find both positive and negative news floating around in the media.Its like here is one bullish view, here is one bearish view, take your pick.

      Fact is, today it still remains a buyers market.Most Big players in the industry are willing to sit and negotiate unlike some years back.

      I feel, Choosing to wait and watch by the buyers is not as deteremental as it would be for a seller who is in distress.

      The risk for a buyer is to see the prices zooming to a new higher level.They might end up similar to the ones who missed the bus during the previous boom.

      Most people who buy today are people who take loans and over-leverage themselves thinking they are investing in an asset that provides high returns in long term and that they get to own a home in their name by paying the rent towards EMI.

      I would ask, if for a person the current rate is high and unaffordable making RE investing taking loans unattractive.Does it matter if price goes even higher?Its a Huge opportunity loss no doubt, but one doesnt actually become poorer than before.People shouldnt over exert their capacity.

      I feel its foolish to brood over a lost opportunity, It only causes more frustration which is a needless agony one needs to inflict on themselves.Nothing is gained out of it.One should just let go and look for the next big opportunity.There are various other avenues to make money.

      The risk for the seller is to see themselves sinking in crisis if the market doesnt revive quickly.The risk is drowning in debt and losing their everything and going out of business.According to me, they are more vulnerable to come forward with attractive deals to lure buyers.

      In RE entry is easy irrespective of the upward or downward market trend if you have cash, but exit is easy only during upward trend.

      I have only the following to say regarding the decision whether and when one should buy or sell.

      "SUIT YOUR NEEDS"
      Last edited June 15 2009, 02:44 PM.

      Comment


      • Re : Property Price Trends in Chennai

        Where are we in this recession? Critical question!

        Folks,

        With this rally of 78% in the stock market and prices taking a break from declines (of course, as pointed out by unlikely, contra, nabishek volumes are not increasing though, which is the real sign of early recovery), the question that many people are coming up with is, "Is the worst over? Will we see immediate recovery? Will the boom return and we lose this opportunity to buy all over again?"

        Tricky question to answer, but we will attempt it taking some select data into account. Here is the annecdotal evidence:

        - Check out the frontpage article in Deccan Herald (13 Jun) with the title "IT jobs prospects bleak" with liberal quotes from non other than the top 2 guys in the business:

        1. Employment opportunities for new graduates are going to be very limited - Gopalakrishnan, Infy

        2. A large number of engineers graduating this year and remaining unemployed will result in salaries plunging - Premji

        3. Some 40-50% of grduating engineers of 2008-09 will not be getting jobs. This figure goes to 80% for graduates coming out in 2009-10 batch (and people are talking of the turnaround alrerady around the corner!!!) - VC of Anna University

        4. Competition from other countries is hotting up and Premji warns the industry from falling intoa mind trap of "Advantage India"!

        He further says "We have talked a lot about India Advantage. That makes me extremely worried. It is a huge amount of thumping on the back. (I assume he meant self-congratulation or self-praise).

        BPO exports from Philippines this year is pretty close to what India did 5 years ago and is probably 10% of India's exports.

        Now me:

        And Philippines is only one country among at least 10 others who are breathing down India's neck. There are much bigger fish out there like Russia, Eastern Europe, Mexico, Brazil and China who can do 5 times what Philippines has done, each!!!

        Where I'n, coming from is, there are some incontrovertible truths people are refusing to see, till it overruns them!

        1. IT boom was the principal reason for the RE boom in India. Obviously it also needed the collusion of the Govt (which was too keen to show "Growth"), the builders and bankers (not to mention speculators like you-know-who) who together have ganged up to screw the buyers by hanging this "boom-boom" story in front of poor suckers.

        2. They now extrapolate this story 10 years into the future and tell everyone to buy today because they missed the boom in 2004 and they should not miss it now. They conveniently forget to tell them that 10 years from now India may only be one amongst many outsourcing destinations and may even be 3rd or 4th in the ranking!!!

        3. When this is pointed out, they tell people that IT is not the reason for the current boom as people from many other industries have joined in. They forget two things. a. IT jobs still provide the most significant reason for RE to not crash. b. Many of the other buyers belong to down-stream or support businesses that thrive on IT. Without IT booming, where will these people be?

        Other evidence:

        This tock Market boom has been a strong brear market rally. Around 15600, it has probably ended. Next few months may see consolidation in a wide range or even a significant decline, based on what happens to the Western World (I will come to that shortly).

        I hear (from dealers who tour these markets daily) that in areas like Ambathur Industrial area, as much as 70% of manufacturing has been shut down.

        At best, the rate at which economies were falling has declined. That does not mean that the reversal is on. The latest IIP data shows a turnaround from -0.8% to +1.4%. Please note the reasons provided for this turnaround. This jump in production is primarily to buildup inventory in anticipation of increased sales!!! This is from Montek himself. So, it is not because you and I have actually gon and bought things. Nope. This is because our industrialists are hoping that, if they stuff the stores with more stuff, you nd I will somehow be enticed to go and buy. All this when the job situation is so bleak!!!

        California (the 6th largest economy in the World!!! - remember, India is only the 12th largest), is completely broke with a deficit of $25 Billion which they don't know how to cap. At least 6 other states in the US are in similar situation. India's boom story is almost entirely based on the export boom, 60% of which goes to the US. And with the US in such a dire state - and declining at an alarming rate from now on - how are we so confident that our economy will recover and boom?

        My final question to the bulls. Where do you see this economic boom coming from, under the circumstances? If you don't know of any Industry booming, then how do you say the boom is around the corner. Who will banks lend to if there are declining numbers of people worthy of lending to. And which sane lender will lend the insane amounts at insane leverage to people with declining salaries to keep prices rising?

        I don't need to keep trying to convince people that at best we will have a flat economy and at worst we will get into a decline again after which we will be flat for years to come.

        So, under these circumstances, why should you buy and pay an increasing amount of interest, probably seeing your investment either underwater or at best at par (giving no positive returns) for years to come!!!

        At best, you would buy if you intended to buy for staying anyways, AND if you had enough to cover for the increased payments from your income or savings. A majority of us, I assume, can easily extend our rented status and wait for more opportune prices and global economic outlook, before venturing into such a massive responsibility.

        Figure it out yourself!

        cheers
        Last edited June 14 2009, 05:56 PM.

        Comment


        • Re : Property Price Trends in Chennai

          I just hope the silly bears are right and prices of RE come to the level of 2003. That means I will get a flat in Adayar (1200sqft) for 16 to 20L. How much I would love it! LOL!
          Unfortunately that is not going to happen and luckily for me, I have RE and cash so in a fall I will enter and in a rise I wont need to cry! The problem is most have a little cash and no RE. For them if they listen to these silly bears and assume California's governor Arnold's saying that we need no text books and only laptops is right because he is the terminator then no sense can get into their heads.
          Wake up guys. If you missed the bus in 2003 and want the bus to come back to pick you up then you are highly mistaken.
          Finally who gives you this advice. A guy who supposedly has 2 plots in Kormanagala and one in RK Salai. He has sold none of these as per his admission and then wants you all to think prices will crash to the pits and sell out all your RE.
          Well if you all believe Wiseman and his lies, I WILL LOVE IF WISEMAN's LIES BECOME TRUTH and prices crash to 2003 levels as I said earlier. However I am no day dreamer and dont expect to buy a flat in Adayar for 20lakhs even in my dreams!
          Last edited June 15 2009, 03:12 PM.

          Comment


          • Re : Property Price Trends in Chennai

            Originally posted by Natarajg007 View Post
            I just hope the silly bears are right and prices of RE come to the level of 2003. That means I will get a flat in Adayar (1200sqft) for 16 to 20L. How much I would love it! LOL!
            Unfortunately that is not going to happen and luckily for me, I have RE and cash so in a fall I will enter and in a rise I wont need to cry! The problem is most have a little cash and no RE. For them if they listen to these silly bears and assume California's governor Arnold's saying that we need no text books and only laptops is right because he is the terminator then no sense can get into their heads.
            Wake up guys. If you missed the bus in 2003 and want the bus to come back to pick you up then you are highly mistaken.
            Finally who gives you this advice. A guy who supposedly has 2 plots in Kormanagala and one in RK Salai. He has sold none of these as per his admission and then wants you all to think prices will crash to the pits and sell out all your RE.
            Well if you all believe Wiseman and his lies, I WILL LOVE IF WISEMAN's LIES BECOME TRUTH and prices crash to 2003 levels as I said earlier. However I am no day dreamer and dont expect to buy a flat in Adayar for 20lakhs even in my dreams!
            No one says price will go to 2003 level. It will reach the inflation adjusted level+ some 10 or 20% more.

            With doomed future in IT fields in India, over supply of flats, all will lead to RE down and down

            Comment


            • Re : Property Price Trends in Chennai

              Originally posted by lovebird View Post
              No one says price will go to 2003 level. It will reach the inflation adjusted level+ some 10 or 20% more.

              With doomed future in IT fields in India, over supply of flats, all will lead to RE down and down
              very well said lovebird. You made a very good point. But unfortunately you are responding to an arrogant old man.

              I am still sticking to this forum just to read some valuable information provided by you, nabishek, wiseman, contra and others. Also to criticize/deny/dismiss any misinformation given by an arrogant/filthy old man who is roaming in this forum like a crazy dog.

              lovebird, nabishek, wiseman, contra and others - keep up the good work gentlemen.
              Last edited June 16 2009, 12:11 AM.

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              • Re : Property Price Trends in Chennai

                Got that Mr. Wisey.

                Comment


                • Re : Property Price Trends in Chennai

                  Re will crash

                  Since all RE firms are in deeep debt RE prices will crash
                  no doubt

                  Comment


                  • Re : Property Price Trends in Chennai

                    Originally posted by lovebird View Post
                    No one says price will go to 2003 level. It will reach the inflation adjusted level+ some 10 or 20% more.

                    With doomed future in IT fields in India, over supply of flats, all will lead to RE down and down
                    Please state what you meant in an understandable fashion. So if price in 2003 was X and in 2007-8 was 5X (which was the norm for land in Chennai) what is your expected price.
                    1.2X? 4X? Answer clearly. Dont just make some 20% answers. They make no sense.

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by strongsville View Post
                      very well said lovebird. You made a very good point. But unfortunately you are responding to an arrogant old man.

                      I am still sticking to this forum just to read some valuable information provided by you, nabishek, wiseman, contra and others. Also to criticize/deny/dismiss any misinformation given by an arrogant/filthy old man who is roaming in this forum like a crazy dog.

                      lovebird, nabishek, wiseman, contra and others - keep up the good work gentlemen.
                      Wiseman's abusive, self appreciating id .... is Strongville. One of many jalras of WIseman. Try to get your other jalra Lovebird to answer my precise question in the previous post. Just trying to praise oneself by creating dup ids does not make one Wise.

                      Comment

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