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Property Price Trends in Chennai

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  • Re : Property Price Trends in Chennai

    I am the only one confused
    i think while wiseman is talking about cycles, nats is talking about motorbikes. correct?

    Comment


    • Re : Property Price Trends in Chennai

      I would be a superchamp then!

      Originally posted by yeskrish View Post
      I am the only one confused
      i think while wiseman is talking about cycles, nats is talking about motorbikes. correct?

      Yeskrish,

      Probably the other way around. I've done 1.80 lakh kms on my RX-100 since 1987. Nats has done 50k km since 1989 (probably) - must be on his TVS-50; I recollect it was a popular moped in those days:p. At best its the other way around. While I'm talking about motorcycles, he may be talking about cycles.

      Otherwise, I must be one of the cycling greats of the world having completed 180000km on a cycle!?

      Anyways, after this comic interlude, lets get back to RE!!!

      cheers

      Comment


      • Re : Property Price Trends in Chennai

        Friends,

        The sense and joy of ownership and accomplishment whether its while buying a home or a car surely demands a premium and people who can afford it will buy to experience that pride giving any price.Its only to show that they have succeeded and they are above rest in the crowd.I am sure no one would dispute that.

        But, I see that there's a fundamental difference, which we are missing in your discussion.

        Car is perceived more as a luxury, whereas house is a necessity.

        No one buys a car thinking that they will get 15-20% CAGR returns and can dispose it after 2-3 years and get a new one.Its accepted and known that its an expense and people buy it as a status symbol knowing well the fuel,maintainence expenses,rate of depreciation and cost of ownership.

        Unless its a vintage model and is having antique value,selling it for a profit is a long shot.Only people who know its value will appreciate and pay anything for it.

        Another way to see profit from buying a car, is to book a newly released car, say tata nano and sell it at a premium when being delivered.How many would do that?

        Its not the same with RE, people buy flats taking huge loans to leverage and aiming to make profits and create wealth.Especially salaried class who are conned by showing tax benefits and past success stories.

        Had people been buying house only based on need and when they had enough cash then the price would have never risen so sharply to todays level.right?

        I am very optimistic about future of Chennai developing into one of the best cities in the world.Chennai is naturally blessed with so many strategic and locational advantages.For the amount of potential chennai holds, land prices within the city are very competitive.

        Having said that, Like any product, For selling RE also Positioning and pricing keeping the target segment in mind is very important.

        Most of the projects launched in chennai are to cater the needs of salaried class who cannot afford from their savings, but can take bank loans, and who want to get tax exemptions, save on rent, stay near to their workplace and build wealth in long term.Only few premium projects were launched keeping HNI's, NRI's or a particular community in mind.

        I saw one advt where a flat in boat club road from a very reputed builder is being sold only for 16K/sqft while other cities like Mumbai is sold for 40-50K/sqft.

        HNI's from Mumbai can buy 2 flats in Chennai and Similarly HNI's of Chennai can buy acres near Coimbatore.But will they is the question?Even if they did, they would buy 4 property in mumbai before buying 1 in posh location of Chennai.We all would like to own wealth where we live or atleast have some relevance attached to it.

        Builders can still sell their property at their quoted price if they can wait long enough till they are able to find that one buyer.Thats what they are doing for more than an year now.

        But, for that they would have to finance themselves, finish their project maintaining quality and standards and try hard to please the non-compromising nature and expectations of their buyers who are buying cash down.

        For builders who have seen easy money from pre-launches and pre-approval tie-ups from banks and enjoying interest free finance for their project, this is asking too much.They would love buyers to fall prey, and get back to taking huge loans from banks and feed their greediness.

        With their primary target segment taking a hit in affordability, confidence and are not taking a buying decision.They will be forced to reduce the prices, offer better deals and provide value for money.

        It is the only way to get the salaried class to start taking loans and buy again amidst the insecure job market,less disposable income and increasing interest rates.
        Last edited July 13 2009, 07:59 PM.

        Comment


        • Re : Property Price Trends in Chennai

          In short ...

          Originally posted by nabishek View Post
          Friends,

          The sense and joy of ownership and accomplishment whether its while buying a home or a car surely demands a premium and people who can afford it will buy to experience that pride giving any price.Its only to show that they have succeeded and they are above rest in the crowd.I am sure no one would dispute that.

          ....

          With their primary target segment taking a hit in affordability, confidence and are not taking a buying decision.They will be forced to reduce the prices, offer better deals and provide value for money.

          It is the only way to get the salaried class to start taking loans and buy again amidst the insecure job market,less disposable income and increasing interest rates.

          In short, prices must correct downward first before affordability can allow people to buy and clear the inventory.

          Till then banks will keep away, buyers will not get funded and builders distress will mount as they have to service the debt burden while keeping all their buildings as idle stock!

          They aer between a rock and hard place. And are either refusing to see the light OR think they can get away with it!

          They are not taking into account the intelligent customer (always customers are thought of as idiots!). Hard times are ahead for the inflexible builder!

          cheers

          Comment


          • Re : Property Price Trends in Chennai

            Originally posted by yeskrish View Post
            I am the only one confused
            i think while wiseman is talking about cycles, nats is talking about motorbikes. correct?
            Nat is always like that. Irrelevant talks. Skip it

            Comment


            • Re : Property Price Trends in Chennai

              I just cant help laughing about Wiseman and Lovebird. The former wants to win in some argument or other and of all things on bikes (in a RE board!). Let me allow him to be the Salesman on bike. Well I graduated to having 3 vehicles, 2 being cars, and then have been working from home for the past 6 years. I was a pro and became a manager too soon! Was never a salesman! Have been abroad for quite some time. Worked in Queen's road, not on Tumkur road. Lived in Malleswaram at that time, etc etc.
              In simple I am yet to complete 50K km on my bike and I must add that it has taken me the last 6 years to move the last 2000km or so! And well Wisey guessed it right partially. It is TVS but not a 50! It is a 100!
              Will leave it to the folks to understand how desperate darling Wisey is that if I talk about rocks he will argue he has the biggest rock and if I talk about sand he will argue he has the biggest sand. Now if I argue about air, we will all know from him that he is the biggest hawa in town! Let him fart his way. I dont need to prove everything!

              Comment


              • Re : Property Price Trends in Chennai

                Nice Article on Root Cause of Global Meltdown

                ]http://www.washingtonpost.com/wp-srv/business/risk/[/URL]

                Comment


                • Re : Property Price Trends in Chennai

                  Hi Friends,

                  List of projects from "SBI Home Fair 2009"


                  Akshaya Foundations

                  Adora - OMR - 3500/sqft
                  Adena - Kazhipattur,OMR
                  stilt+4 block - 2500/sqft
                  9 storied block - 2750/sqft

                  Antony Associates

                  Lumen Christi - Gandhi nagar,adyar - 8500/sqft
                  The Pebbles - Sithalapakkam - 1675/sqft
                  Melody - Madipakkam - 2700/sqft
                  The Orchard - Madambakkam - 1875/sqft
                  Cedar - Medavakkam - 2190/sqft
                  Gateway - Nanmangalam - 2690/sqft
                  The Spring - Ambattur - 2790/sqft

                  BSCPL Infrastructure

                  Bollineni Hillside - Off OMR - 2530/sqft

                  CeeDeeyes

                  Chennai Pattinam - All Inclusive - 2075/sqft, stall offer - 2000/sqft

                  Doshi Housing

                  Etopia I and II - Perungudi - 3895/sqft
                  Nakshatra - Tambaram - 2895/sqft
                  Tranquil - Velachery - 5500/sqft
                  Trinity park - Santhoshpuram,Vengaivasal - 3195/sqft
                  Serene Couny-Villas - Santhoshpuram,Vengaivasal - 45 lakhs onwards
                  LlanStephan - Chetpet - 9000/sqft
                  Sri Mahalakshmi - Ayanavaram - 4750/sqft

                  DLF

                  Gardencity - 2750/sqft, stall offer - 2450/sqft

                  Fairyland Foundations

                  Annora - Madipakkam - 3300/sqft
                  Alma - keelkatalai - 2800/sqft

                  Hiranandani

                  Hiranandani Upscale, OMR

                  Oceanic - Sea facing - 4700/sqft, OMR facing - 4500/sqft
                  Edina - Sea facing - 4400/sqft,OMR facing - 4250/sqft
                  Seawood,Pinewood, Brentwood - 4200/sqft
                  Bridgewood - 4350/sqft
                  Birchwood - 4350/sqft
                  Greenwood - 4450/sqft

                  KGEYES

                  3 Projects on L.B.Road, Thiruvanmiyur - 6950/sqft
                  Delmare - Beach road,Thiruvanmiyur - 7500/sqft
                  Carolina - Velachery,Taramani - 4750/sqft
                  Eternity - Kalakshetra - 9000/sqft
                  Vrudhi - P.H.Road - 7500/sqft

                  Marg Construction

                  Swarnabhoomi,Navaratna,Kalpakkam - 1499/sqft
                  Pushpadruma,OMR - 2099/sqft

                  Navin Housing

                  Dayton Heights - Nelson Manickam road - 7000/sqft
                  Subha Mangala - Ramapuram - 4350/sqft
                  Brookfield - Nanmangalam - 3600/sqft
                  Merrylands - Medavakkam - 3500/sqft
                  Rajamani - Ashok Nagar - 6900/sqft

                  South Indian Shelters

                  SIS Safaa - Urappakam - 3300/sqft

                  Vasavi Builders

                  Anicham - kelambakkam,OMR - 2255/sqft
                  Magilam - Keelkatalai - 2775/sqft

                  VGN Group

                  Minerva - Mogappair,Nolumbur - 3175/sqft

                  Vijay Shanthi Builders

                  Fountain Square - Ayanavaram - 6750/sqft
                  Glo - Besant Nagar - 11000/sqft
                  Terracota - Adyar - 13000/sqft
                  Lotus Pond - Thaiyur,OMR - 2600/sqft
                  Infinti - Near Queensland,NH4 - 2600/sqft
                  Vastly the prices were stagnating compared to Feb '09.

                  Snapshot as follows

                  Chennai Proper - Area within corporation limit

                  Projects within and near the city have increased their price by 300-500/sqft.The 10-20% discount given earlier has been reversed and prices being mentioned as negotiable.

                  Chennai Suburbs - Areas within the proposed new corporations and CMDA limits

                  Price are stagnating, No new projects being launched in these areas.

                  Chennai Suburbs - Areas outside corporation within CMDA limits.

                  Lots of new projects launched, price range around 2000-2500/sqft.

                  Chennai Outskirts - Areas adjoining OMR/GST/Bangalore and kolkata Higways.

                  No new projects.Significant correction seen in outskirts due to huge oversupply.Rates competitive between 2000-3000/sqft.

                  Finally, The fair witnessed decent crowd,SBI loan offer was really attractive.The mood among the builders was upbeat.Builders and plot developers were making statements like recession period is over and trying to drive the point that market has bottomed out and the prices are going to move up.Have to mention, all the prices quoted were negotiable.
                  Last edited July 19 2009, 12:40 AM.

                  Comment


                  • Re : Property Price Trends in Chennai

                    Nabhishek, Appreciate if you can help define/ give examples of what you mean by the following
                    Chennai Suburbs - Areas within the proposed new corporations and CMDA limits
                    Chennai Suburbs - Areas outside corporation within CMDA limits.
                    Thanks in advance.
                    Incidentally your final remark makes sense.
                    a. It is bottoming out but then has it bottomed out is no guarantee. I for one am bullish though.
                    b. When negotiable is the word on prices it means that if it has bottomed out then in next three months we will know the truth. If I am right then in next three months prices will zoom up. If it has not bottomed out, negotiable will continue.
                    As for buyers. They are literally going to be confused by reading Bear and Bull posts. To me an investor with cash should buy now. A serious buyer should buy now. The speculator should yet wait but for land there is going to be no downmove in the next 10-20 years. 3% area of world feeding 17% population is not to be compared with USA or Australia!

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by Natarajg007 View Post
                      Nabhishek, Appreciate if you can help define/ give examples of what you mean by the following
                      Chennai Suburbs - Areas within the proposed new corporations and CMDA limits
                      Chennai Suburbs - Areas outside corporation within CMDA limits.
                      Thanks in advance.
                      Incidentally your final remark makes sense.
                      a. It is bottoming out but then has it bottomed out is no guarantee. I for one am bullish though.
                      b. When negotiable is the word on prices it means that if it has bottomed out then in next three months we will know the truth. If I am right then in next three months prices will zoom up. If it has not bottomed out, negotiable will continue.
                      As for buyers. They are literally going to be confused by reading Bear and Bull posts. To me an investor with cash should buy now. A serious buyer should buy now. The speculator should yet wait but for land there is going to be no downmove in the next 10-20 years. 3% area of world feeding 17% population is not to be compared with USA or Australia!
                      Please refer to the maps I had posted earlier in this thread

                      Certain town panchayats of Thiruvallur and kancheepuram/Chengalpet districts are within the ambit of CMDA limits.

                      Now they are outside chennai corporation but will be included when the new proposed south and north corporation comes into effect.

                      The panchayats falling under cmda are as follows(from tn.gov.in website)

                      KANCHEEPURAM DISTRICT

                      Chitlapakkam
                      Kunrathur
                      Nandambakkam
                      Perungalathur
                      Sholinganallur
                      Madambakkam
                      Mangadu
                      Perungudi
                      Sembakkam
                      Thiruneermalai
                      Meenambakkam
                      Pallikkaranai
                      Peerkankaranai

                      THIRUVALLUR DISTRICT

                      Chinnasekkadu
                      Minjur
                      Naravarikuppam
                      Porur
                      Puzhal
                      Thiruninravur
                      Thirumalaisai

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