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Property Price Trends in Chennai

Last updated: November 19 2018
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  • Re : Property Price Trends in Chennai

    Originally posted by k11 View Post
    Not sure if the stats are exagerrated, there are less than 1 crore people in the city. Whole of TN has 7 crore people so there cannot be 6C flats.
    I think the stats was for whole of India, not just TN.

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    • Re : Property Price Trends in Chennai

      Originally posted by k11 View Post
      ]
      The only way I see is there needs to be some kind of vacant land tax. It should be 4-5% of the property value every year. If the property tax is not paid for 3-4 years they should auction off the landed property.

      We need to discourage plot ownership. Plots should be registered with a high stamp duty. May be they can charge 20% stamp duty and refund 12% of it when the building/house is complete.

      Govt can make a lot of money and bring down the housing prices in the suburbs this way. This will make life easier for all, buyers, builders and govt.

      Great ideas. Unfortunately, many politicians hold acres of land, so hard to see any such regulation policy in near future.

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      • Re : Property Price Trends in Chennai

        They were discussing mostly about land/plots rather than apartments. Anyways it was interesting.

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        • Re : Property Price Trends in Chennai

          This goes back to our discussion, did the plots really appreciate in the last three years in the outskirts.

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          • Re : Property Price Trends in Chennai

            People who are the market will say yes. I was planning to buy 1 ground plot in Kelambakkam last year to build rental units, land cost was 25 lacs. Today you can't get a good plot for less than 40 lacs.

            My relative sold house in chromepet for 75 lacs in 2010. His brother who owns a house few feet away decided to sell this year and he got offer for 1.25 crores.

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            • Re : Property Price Trends in Chennai

              Originally posted by Love4land View Post
              My relative sold house in chromepet for 75 lacs in 2010. His brother who owns a house few feet away decided to sell this year and he got offer for 1.25 crores.
              Then why are apts in Chrompet still languishing at around 4K. Mantri at 3850 was my reference.

              Should it be 6K now using the same return.

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              • Re : Property Price Trends in Chennai

                Originally posted by k11 View Post
                Then why are apts in Chrompet still languishing at around 4K. Mantri at 3850 was my reference.

                Should it be 6K now using the same return.
                Mantri is not good reference, even normal builder floor apartments in areas like Nehru Nagar and Hastinapuram costs 4500 psf and upwards. Landmark centralia which has not got approval for past 3 yrs and in middle of leather industries is priced 4200 psf.

                I don't know why Mantri is priced low, maybe they desperately need money or they have difficulty selling after they screwed up Synergy and spoiled their own reputation.

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                • Re : Property Price Trends in Chennai

                  I take back my coment on Mantri. I think we already discussed this.

                  The Indep home prices are always absurd and are done well above market value sometimes. I guess your realtive is lucky on this front.
                  Last edited August 27 2012, 10:36 AM.

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                  • Re : Property Price Trends in Chennai

                    Coming back to the inability of the suburbs to break price ceilings.

                    Don't you guys think there is always a new suburbs that gets attention when prices have already ramped up.

                    Here is my personal view and how I see Chennai.

                    Late 90's was all about ECR, it peaked in 04-05. ECR boom died in 06.
                    However there is a little chance of revival.

                    02-06 was all about OMR, it peaked in 08 fell and now going up again might peak in 14-15. It looks the most promising suburb (Siruseri/Navalur).

                    Porur got lot of attention in the post 05 period to 08 and prices have some more distance to go, Porur might end up a bit lesser than Moggapair prices in the coming years.

                    Oragadam boom started in 06-07, it has got a lot more room to run.

                    Guduvancherry too has got lot more room to run. However MWC might have peaked out, too far from city,

                    Next upcoming stretch becoming Hyper is Sripermbadur - Poonamalle. Heating up since 09 and the airport talk. Prices on par with Oragadam/ interior Guduvanchery but not a lot of job growth and bad connectivity. Very little activity now. Govt might acquire huge belts of land to prime it up.

                    Thiruvallur is very much dead.

                    Ambattur area has some potential but for all intensive purposes it is dead.

                    Redhills and nearby areas are also dead since 5 years without any activity.

                    North Chennai suburbs is total mystery, never hear anything about it.
                    North Chennai city itself is so cheap that people do not have to go to suburbs.


                    So there is so much space all around the city, why do people think as if there are no more suburbs left. If the prices in OMR go up a lot wont the industries and companies got to other vacant areas.

                    During the high interest rate environment, cost of the investment has gone up a lot.
                    Choosing the area (suburb) with potential has become difficult.

                    Where are you guys betting on?
                    Last edited August 27 2012, 10:38 AM.

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                    • Re : Property Price Trends in Chennai

                      Originally posted by k11 View Post
                      When it comes to land, I do agree there is land hoarding.
                      It is not rich people even middle class people are the biggest hoarders, buying up land and not building anything on it.
                      If the developer gets cheap easy land, he will make cheap flats. Hoarding land backfires by making apts expensive especially in outskirts.
                      This is bad for RE affordability.
                      The only way I see is there needs to be some kind of vacant land tax. It should be 4-5% of the property value every year. If the property tax is not paid for 3-4 years they should auction off the landed property.

                      We need to discourage plot ownership. Plots should be registered with a high stamp duty. May be they can charge 20% stamp duty and refund 12% of it when the building/house is complete.

                      Govt can make a lot of money and bring down the housing prices in the suburbs this way. This will make life easier for all, buyers, builders and govt.
                      I hope you are not serious, and I really hope the trigger happy govt doesn't read this and get ideas!

                      1. Big developers buy large tracts of land at far off places, and encash by developing when required infra comes in. It's still happening. What's wrong in a middle class fellow investing in Land for the rainy day?

                      3. I dont think middle class folks, in particular, buy land as investment. Its likely that they are unable to build a house they want to build. Additional taxes will only make it more difficult. Yep you talk about return of 12%, like thats going to happen across the counter, knowing how things work in a govt office. Unlike other forms of investment, housing is a social responsible sector. Mad taxing should be abhorred. What's being charged already is heavy. What social security does our govts offer today?!

                      2. a) Like Einstein said, the only thing humans can never understand is taxes, or something like that. Taxes need some justification, Govts shouldn't tax just because they can. When I pay Stamp duty and reg. charges, that's supposed to help the govt in developing the required infra in that region, even though they dont! With the extra money you suggest, there is not even a pretense of a justification.

                      b) Increasing such stamp duty and charges, will only lead to black money.

                      c) There is no nationwide uniformity in stamp duty/reg charges. In some states the registered value is just 1/10th of the actual transaction. Tamil nadu is perhaps the most compliant and best regulated. Should we suffer on account of being good citizens?!

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