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Property Price Trends in Chennai

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

    Interesting stats, esp >50% not taking loan is surprising. wow! I mean wow!

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    • Re : Property Price Trends in Chennai

      RE used to be a basic necessity before but after the recent economy boom in India it has become an investment vehicle. It is one of the major factor for the inflated price.
      In a stalled economy what makes the RE increase? Per my view it is builders/ RE agents/ brokers who are creating a virtual demand and holding the prices. How long they can hold? It is similar to OPEC jacking the oil price every day.

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      • Re : Property Price Trends in Chennai

        Originally posted by randomguy View Post
        Interesting stats, esp >50% not taking loan is surprising. wow! I mean wow!
        That is because the price is no more affordable for people who are salary dependent.

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        • Re : Property Price Trends in Chennai

          Originally posted by nikons View Post
          RE used to be a basic necessity before but after the recent economy boom in India it has become an investment vehicle. It is one of the major factor for the inflated price.
          In a stalled economy what makes the RE increase? Per my view it is builders/ RE agents/ brokers who are creating a virtual demand and holding the prices. How long they can hold? It is similar to OPEC jacking the oil price every day.
          Investors/Buyers are also responsible.

          If there isn't a long line of buyers, who will the builders/brokers sell it to.

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          • Re : Property Price Trends in Chennai

            nowadays price trends in Chennai severely attacks the Chennai south up to my knowledge.......

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            • Re : Property Price Trends in Chennai

              Originally posted by nikons View Post
              That is because the price is no more affordable for people who are salary dependent.
              Affordability is one of the factor, but not the ultimatum. It's got to do more with regulation (skewed towards tenants, CG and inheritance tax), steady RE market and social net provided by the government.


              How many of us see arts/antiques/artifacts as investment? which is big in many regions. Gold/RE is in our psyche as investment avenue, Will we remain as desperate to book pre-launch flats ? if he/she already owns one? Previous generation spent lifetime to own one and now average owner is in 30's. Probably it will take a while to remain sane.

              I agree with k11 on who is responsible- we are equally culpable as builders. 'Ignorance is not bliss here ' . On positive note we have domestic market which can sustain country's market, but it's no way ready yet.

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              • Re : Property Price Trends in Chennai

                Have heard from some friends that HDFC says more than half of their customers pay the entire loan in 7 years and has shown a list to prove that! Hmm!

                I guess all those people who are able to buy high end properties (apart from the super rich) , or lets put it the salaried ones, may be the ones earning well from say 2003-04. Now they are having high salaries and hence higher loan eligibility.

                The ones who started earning from 2007 onwards (average earning employees) wont even be able to afford the flats on outskirts as the price increases are beating their earnings :-) so I guess it would be interesting to see how the loan repayments go about for the next 10 years !


                Earlier days people took a long time to buy a house because they did not believe taking loans is good! But now people have no concept of savings and just live on the edge and take loans based on their loan eligibility and hence are able to buy in a quicker time!

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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.
                  My fears after reading your post seems to be coming true. You may rejoice!!

                  Punjab slaps property tax on vacant plots

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                  • Re : Property Price Trends in Chennai

                    Edited
                    Last edited August 29 2012, 11:08 PM. Reason: Thought it is not worth

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                    • Re : Property Price Trends in Chennai

                      Originally posted by murugesh View Post
                      My fears after reading your post seems to be coming true. You may rejoice!!

                      Punjab slaps property tax on vacant plots
                      That's a great initiative by Punjab. Thanks for posting it, Murugan.

                      Although it seems timid, I would like something more draconian in TN as we have lot more speculators.

                      Just an FYI,
                      I am a speculator too but I wish for the true lower middle class end-user to be able to afford something in the suburbs.
                      This will not change the scenario in City as there are almost no vacant plots. By the way I do not hold anything in suburbs, or plan to buy anything in near term. So a price rise and fall will not be a benefit to me anyways, but there are lot of potential buyers/exiting investors who would prefer an end user driven price increase and not a speculator driven increase.
                      Only brokers like speculators.
                      Just wish a fair market for everyone. Affordable housing for all.

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