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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2344 Replies
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  • Stocks vs RE

    Hi All,

    Although stocks and RE are two different asset classes, one would agree that both are markets, and as such are governed by 'market forces' (Those who talk of RE as rigged vs stocks should know that the existence of so called 'operators' and manipulators in stocks in more prevalent than we would like to believe). If that be so, can we ask some questions about RE (Chennai RE, in particular), considering it as an asset class governed by factors such as, overall economy, value or worth of a property, builders reputation, location significance, demand-supply and other cyclical factors such as interest rates, boom-bust nature of disposable income, builder income etc.?

    In such a spirit, my own questions are:

    1. Chennai RE is stagnating after a 3-4 year bull run (depending on where you want to start) - in general, stagnating markets are poised for a break-out. Usually, a second bull run does not arrive until some 'gaps' are filled by the asset prices, meaning 'price correction'. If that holds, can we say the price correction has happened or is about to happen? What will make that happen?
    2. Do the powers that be have that much power to actually hold the prices from falling - if so, for how long? This argument is usually made by those who say that Chennai prices will not fall because 'those people will not let that happen' - who are these people?
    3. So, going by the above, if we agree that we had a bull run, if we agree that Chennai RE is stagnating for 1-2 years, then a correction has to be on the cards, no two ways about it, it seems. Or we will have more stagnation, meaning up and down 10-15% for months or years. But, after that what?

    Please share your insight.

    Thanks.

    End_user
    CommentQuote
  • And the next one to hold Chennai RE up.

    http://www.hindu.com/2010/02/28/stories/2010022850220100.htm

    I was expecting something of this kind, after visiting Fair Pro 10, to increase Chennai RE.

    Expecting some more announcements on the way...........
    CommentQuote
  • Originally Posted by REUser
    http://www.hindu.com/2010/02/28/stories/2010022850220100.htm

    I was expecting something of this kind, after visiting Fair Pro 10, to increase Chennai RE.

    Expecting some more announcements on the way...........


    No way...!!!
    DId you read the last statement..it says "These recommendations are expected to be implemented by 2026".....its a long way...

    Mahesh
    CommentQuote
  • Originally Posted by Maheshk
    No way...!!!
    DId you read the last statement..it says "These recommendations are expected to be implemented by 2026".....its a long way...

    Mahesh


    2026 It Is a misprint in the newspaper.
    It is should have been 2062.

    Yes 80% of the work will be completed in 2062 and opened for commuters in 2072.
    CommentQuote
  • too true

    Originally Posted by Economist
    2026 It Is a misprint in the newspaper.
    It is should have been 2062.

    Yes 80% of the work will be completed in 2062 and opened for commuters in 2072.

    unfortunately,its only too true.:(
    CommentQuote
  • Originally Posted by end_user
    Hi All,

    Although stocks and RE are two different asset classes, one would agree that both are markets, and as such are governed by 'market forces' (Those who talk of RE as rigged vs stocks should know that the existence of so called 'operators' and manipulators in stocks in more prevalent than we would like to believe). If that be so, can we ask some questions about RE (Chennai RE, in particular), considering it as an asset class governed by factors such as, overall economy, value or worth of a property, builders reputation, location significance, demand-supply and other cyclical factors such as interest rates, boom-bust nature of disposable income, builder income etc.?

    In such a spirit, my own questions are:

    1. Chennai RE is stagnating after a 3-4 year bull run (depending on where you want to start) - in general, stagnating markets are poised for a break-out. Usually, a second bull run does not arrive until some 'gaps' are filled by the asset prices, meaning 'price correction'. If that holds, can we say the price correction has happened or is about to happen? What will make that happen?
    2. Do the powers that be have that much power to actually hold the prices from falling - if so, for how long? This argument is usually made by those who say that Chennai prices will not fall because 'those people will not let that happen' - who are these people?
    3. So, going by the above, if we agree that we had a bull run, if we agree that Chennai RE is stagnating for 1-2 years, then a correction has to be on the cards, no two ways about it, it seems. Or we will have more stagnation, meaning up and down 10-15% for months or years. But, after that what?

    Please share your insight.

    Thanks.

    End_user

    You are talking technicals without foundation. When did a gap get created in Chennai RE? Prices went up steadily from 2004 onwards. If you missed it that is not other's problem. The gap up happened in Bangalore. In 2003 in just one year it shot up the entire distance almost and so it has had some correction.
    Get your facts right buddy.
    CommentQuote
  • Originally Posted by Economist
    2026 It Is a misprint in the newspaper.
    It is should have been 2062.

    Yes 80% of the work will be completed in 2062 and opened for commuters in 2072.

    2062 and 2072.. that is when Wiseman will be needed to predict. I think most of us may not be bothered about even 2020! LOL!
    CommentQuote
  • Don't accuse others of talking nonsense while doing the same yourself!

    Originally Posted by Almighty
    You are talking technicals without foundation. When did a gap get created in Chennai RE? Prices went up steadily from 2004 onwards. If you missed it that is not other's problem. The gap up happened in Bangalore. In 2003 in just one year it shot up the entire distance almost and so it has had some correction.
    Get your facts right buddy.


    Almighty,

    You are talking about "Gap-up" in a completely unregulated market without any well-defined price quoting mechanism.

    So, how do you measure a "gap". For this you need a closing price for the previous tick (a tick can span a single minute and at the dame time a whole month but it has to have a specified time span). And in this RE market there is no such mechanism - why one cannot even specify a standard product and its official price!!!

    So, while accusing others about their poor technicals, just check that you too are not talking similar nonsense that you are accusing others of! :D

    Just reading Technical Analysis 101 and mugging up some terms does not make you a wizard, just another opiniated, pompous fool!

    I wonder how you take complete leave of your senses (does that even exist? sometimes I wonder) even for the simplest of definitions?! First check the 3 fingers pointing back at you while you are merrily pointing one at another person!

    cheers
    CommentQuote
  • Originally Posted by wiseman
    Almighty,

    You are talking about "Gap-up" in a completely unregulated market without any well-defined price quoting mechanism.

    So, how do you measure a "gap". For this you need a closing price for the previous tick (a tick can span a single minute and at the dame time a whole month but it has to have a specified time span). And in this RE market there is no such mechanism - why one cannot even specify a standard product and its official price!!!

    So, while accusing others about their poor technicals, just check that you too are not talking similar nonsense that you are accusing others of! :D

    Just reading Technical Analysis 101 and mugging up some terms does not make you a wizard, just another opiniated, pompous fool!

    I wonder how you take complete leave of your senses (does that even exist? sometimes I wonder) even for the simplest of definitions?! First check the 3 fingers pointing back at you while you are merrily pointing one at another person!

    cheers

    Wah wah, wat an exent analysis. wah wah....
    Wiseman check out who wrote the word gap up first. BTW, are you taking some medication. Your behaviour seems to show you are highly depressed.
    CommentQuote
  • Confusion about 'gap'

    Hi Almighty, Wiseman,

    I might have caused unintended confusion by using the word 'gap' in a sense that is normally not used in market analysis. That's why I put the word in quotes, as 'gaps'. In any case, sorry about the confusion.

    However, what I meant was that we are unlikely to see a serious uptrend in prices when the market is consolidating after a previous such uptrend, spanning a few years (at least 3 on my count). If this is agreeable, then what can happen is that (in my view at least) the consolidation period could be extended over several years (say 2-3 years or more) or there could be a fall of significant proportions (say 50% of peak price) after which another bull run might start.

    My question to experienced RE watchers is - is this borne out by RE data, in India. I know that this applies to stock markets, more or less.

    BTW, is there anything like a Elliott Wave type theory for RE prices? Just curious...

    Thanks.

    end_user
    CommentQuote
  • Whatz the current trend ?

    Is it worth to wait and watch ?. Or it has bottomed out and we can't expect any fall further ?. People who are in search or recently bought plz do give your comments, since I would like to know the real situation more ...
    CommentQuote
  • Originally Posted by balab1405
    Is it worth to wait and watch ?. Or it has bottomed out and we can't expect any fall further ?. People who are in search or recently bought plz do give your comments, since I would like to know the real situation more ...


    Regarding current trend, We are in a very uncertain phase right now.

    In most places the rates have risen back to peak levels of 2008-2009.

    Since the fundamentals hasnt changed much, I personally feel we may not surpass the current levels.But the future is very hazy and one cant say for sure what surprise awaits us from which direction.

    There are claims from builders of having sold out their projects even before launch.New projects within city are being launched with "already booked" status and new township projects is being sold as the new suburb 40km away from chennai.

    The availability in ongoing projects seems to have suddenly dropped creating a supply crunch.I think its only the strategy of the builders to play on psyche of the buyers, but am not able to substantiate with facts.Who are the buyers?I dont know.

    By taking the builders words, This strategy seems to be paying off better for them as it lures buyers sitting on the fence which didnt happen when they reduced the price by 10-15% earlier and buyers began waiting for further reduction.

    Some facts you would want to consider before arriving at a decision

    1.Interest rates have most likely bottomed out.We can see banks increasing minimum 100bps in coming month.

    2.Construction cost likely to go up due to inflation and rise in cement/steel prices due to shortage in supply of raw materials from parts of India which is seeing local insurgency.

    3.Sales tax being imposed resulting in more cost of ownership now for new projects.

    4.Tax sops for Interest repayment most likely to stay as per new draft of direct tax code.

    5.All Projects getting delayed and taking nearly 2 years to complete.

    6.Rent to buy ratio still suggesting renting as a better option.

    In my opinion, The RE market has not bottomed out yet and there is scope for another wave of correction within the year.But at the same time holding cash and waiting is not advisable and so is taking on huge debt as there is not going to be leverage advantage in short term.

    Everyone should consider investing one major part in assets with inherent worth like RE/Bullion etc.But the decision should be taken individually considering one's personal and financial needs.

    Requesting other members also to share their opinions on the current trend.
    CommentQuote
  • regarding inflation I can say that I wanted to build a kitchen in my apt and the daily rate charged by a set of carpenters is Rs 2000. Earlier it used to be half. cost of plywood is gone by 20% in the recent past.
    Expect more inflation is what I think will happen all over India.
    CommentQuote
  • Originally Posted by rameshyahoo
    regarding inflation I can say that I wanted to build a kitchen in my apt and the daily rate charged by a set of carpenters is Rs 2000. Earlier it used to be half. cost of plywood is gone by 20% in the recent past.
    Expect more inflation is what I think will happen all over India.


    Yes, I belive high inflation will ensure property price will remain high and will not come down.

    Inflation will justify furthur increases in property price.

    Those who are not exposed to growth assets ( property & shares) will loose considerabily.
    CommentQuote
  • I restate my redundant statement

    first home buyers BUY.
    rates have crossed peak rates in many areas.
    India is different and there is no crash in the next 3 years.

    well for investors i would say split your kitty in 40% RE,30% stocks,30% in
    this is after adequate life cover.
    CommentQuote