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Property Price Trends in Chennai

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

    @defu,

    I've good news for you, Hindu property plus is dull these days, no 12-16 page editions or flamboyant full page ads for new projects. Your prayer may finally be answered.

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    • Re : Property Price Trends in Chennai

      Nobody is reducing the price. This is my problem now. I want to invest now while I am in chennai but the sellers are not compromising on the price. Even in my Roots place (Old Washermenpet), the area I have been advised not to invest saying that it is North Chennai and it will never appreciate, they are now quoting Rs. 10,000 per sq ft where the recently raised guideline value is still Rs. 1500 per sq ft. I am frustrated and at the same time regretting the decision that I took in 2000 not to buy because my neighbor quoted Rs. 1000 per sq ft and today for Rs. 10,000 there is no land or house available. One guy is saying today that price will still go up in old Washermenpet because the main metro starting station is coming in old Washermenpet. All my logics and assumption about this area have gone wrong and if I have to buy now I will have to buy at the current mega price. If I skip now and visit chennai next year, they will quote me Rs. 11,000 per sq ft and they will say I missed the boat and the value of my money in bank will be down by 10% due to inflation. I feel I am trapped and compelled to invest at whatsoever is the current rate and whatsoever is the asking price from the greedy sellers ...

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      • Re : Property Price Trends in Chennai

        There is a general opinion that it is buyer's market now. Most of us are discussing about RE correction, crash etc., but builders are not ready to reduce a single penny
        And this is the practical situation. Govt. should take some measure to regulate the RE market.


        Originally posted by fmifmi View Post
        Nobody is reducing the price. This is my problem now. I want to invest now while I am in chennai but the sellers are not compromising on the price. Even in my Roots place (Old Washermenpet), the area I have been advised not to invest saying that it is North Chennai and it will never appreciate, they are now quoting Rs. 10,000 per sq ft where the recently raised guideline value is still Rs. 1500 per sq ft. I am frustrated and at the same time regretting the decision that I took in 2000 not to buy because my neighbor quoted Rs. 1000 per sq ft and today for Rs. 10,000 there is no land or house available. One guy is saying today that price will still go up in old Washermenpet because the main metro starting station is coming in old Washermenpet. All my logics and assumption about this area have gone wrong and if I have to buy now I will have to buy at the current mega price. If I skip now and visit chennai next year, they will quote me Rs. 11,000 per sq ft and they will say I missed the boat and the value of my money in bank will be down by 10% due to inflation. I feel I am trapped and compelled to invest at whatsoever is the current rate and whatsoever is the asking price from the greedy sellers ...
        Last edited July 24 2012, 03:46 AM.

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        • Re : Property Price Trends in Chennai

          Originally posted by braveman View Post
          There is a general opinion that it is buyer's market now. Most of us are discussing about RE correction, crash etc., but builders are not ready to reduce to single penny
          And this is the practical situation. Govt. should take some measure to regulate the RE market.

          Isn't Govt intervention enough with high stamp duties?

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          • Re : Property Price Trends in Chennai

            Washermanpet's price increase has been long overdue, the metro station is the key. I was mentioning a few months back that it is the only affordable place in chennai with metro connectivity and therefore a best place for investment.

            Alandur is another such place (Adambakkam, Puzhudivakkam, Nanganallur). I was shocked when people in this forum told me price of land in Adambakkam is cheaper than areas like Thoraipakkam or Perungudi. If it is true, then we are going to see a massive price rise in Alandur soon.

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            • Re : Property Price Trends in Chennai

              Originally posted by k11 View Post
              Isn't Govt intervention enough with high stamp duties?
              If the government really wants to control prices they can do quite a lot of things, I'm just stating a few examples here:

              -impose additional capital gain for properties sold within a year or two.
              -impose additional stamp duty for NRIs
              -Restrict number of homes each person can own.
              -people who already own a house will only be eligible for 60% bank loan funding.

              These are some of the measures implemented in China and Singapore. That the property prices still shot up despite of these measures is another story!

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              • Re : Property Price Trends in Chennai

                Originally posted by Love4land View Post
                These are some of the measures implemented in China and Singapore. That the property prices still shot up despite of these measures is another story!
                Govt should not be involved in anything in my opinion, they mess up everything. You need to let the free market rule.

                What they can do is put a special tax on empty property or land, make sure it is used and not locked up. It should be 2-5% of the property value per year.
                They should also increase property tax to be used for area development.

                Prices will go up and down. Restrciting buying and selling is crazy.
                They are not able to implement the gas cylinder policy of 4 per household properly, do you think they can do something about RE.
                Last edited July 24 2012, 09:33 AM. Reason: spelling

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                • Re : Property Price Trends in Chennai

                  Yes, enforcing rules in India is close to impossible. However I don't agree that we should let everything to free market, it failed miserably in US. The Glass-Steagal act was introduced after great depression to regulate banking industry, it was slowly repealed during late 90s and early 2000s, as a result economy boomed and real estate prices shot up thanks to unregulated banking sector. I don't have to tell what happened after 2006.

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                  • Re : Property Price Trends in Chennai

                    US market is different. The property tax in NY or Chicago is close to 4-5% of the home value per year. The municipality uses this money to fund schools, police, fire dept, etc.

                    So even speculators would get burnt if you keep the property vacant as they would be bleeding every month.


                    In India for a 2C apt, we get charged 50K. For land also it is extremely low.

                    If they discourage people holding land and vacant flats, it should be more than enough to cool down property prices.

                    Developers get cheaper land so that cheaper apts can be made. Atleast that will help outskirts habitable as many people will move in.

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                    • Re : Property Price Trends in Chennai

                      Originally posted by Love4land View Post
                      @defu,

                      I've good news for you, Hindu property plus is dull these days, no 12-16 page editions or flamboyant full page ads for new projects. Your prayer may finally be answered.
                      @Love4Land:
                      Sorry to be extremely selfish. I am waiting for Property Plus to be turned like Oppurtunities(hope you remember how it was during 2003/2004).

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