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Property Price Trends in Chennai

Last updated: 3 weeks ago
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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
    Kudos to K11.

    Our people are not so dumb! Already they would have started scratching their heads for a way out! Hmm! There has go to be a loop hole! :-) May be get an approval plan and run to the office to show that the construction will start in few months!

    In future will this apply to Hiranandani too ;-)

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    • Re : Property Price Trends in Chennai

      Originally posted by vettipayyan View Post
      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!
      We are reaching point of inflection on wages and affordability index. I do agree people on middle/ senior roles have much more leverage to stretch. Your friend may be right on early closures as loan disbursed in past would be on range of 40 lakhs or less. Now we are reaching a stage even middle/senior management are priced out. Gross income of household in 25-40 lakhs is rising steadily, so are flats in the city. There will be period of stagnation/ correction like 2001-04 or 2008-10 . Interesting times ahead!

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      • Re : Property Price Trends in Chennai

        That's an interesting piece of information. Most of the customers would have opted for 15-20 yr loan tenor. And they are able to finish it off in just 7 years!

        Originally posted by vettipayyan View Post
        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! ..............................

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        • Re : Property Price Trends in Chennai

          Yes, I have noticed this phenomenon too. People take 20yr loans when can afford 10yr loans. The banks are responsible for this. They try to sell higher duration.

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          • Re : Property Price Trends in Chennai

            I don't see anything wrong, extending duration as much as possible will reduce EMI burden. It will give us more leeway to manage our expense and be well prepared for contingencies. Whatever money remains in hand at the end of year can be used to make part payment.

            But not advisable for someone with poor fiscal discipline. In that case lesser duration as better. I prefer the former approach.

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            • Re : Property Price Trends in Chennai

              TVH Ouranya bay price trend:

              2009 - Rs.3200 psf
              2010 - Rs.3200 psf
              2011 - Rs.3400 psf
              Now - 4250 psf

              Interesting!

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              • Re : Property Price Trends in Chennai

                Doesn't provide any meaning inference unless correlated with # of units sold in each year.

                Builder can fix any arbitrary price. What is important is how many units he is able to sell at that price point.

                For instance, Hira has been increasing their price at a steady pace. Apparently they are able to find buyers at each of those price points.

                Need to see the data from TVH on units sold.

                Originally posted by Love4land View Post
                TVH Ouranya bay price trend:

                2009 - Rs.3200 psf
                2010 - Rs.3200 psf
                2011 - Rs.3400 psf
                Now - 4250 psf

                Interesting!

                Comment


                • Re : Property Price Trends in Chennai

                  Originally posted by Love4land View Post
                  TVH Ouranya bay price trend:

                  2009 - Rs.3200 psf
                  2010 - Rs.3200 psf
                  2011 - Rs.3400 psf
                  Now - 4250 psf

                  Interesting!
                  I did not know that Ouranya Bay is still not sold. I thought they sold off everything. Is this 4250 from resale market? If this is resale market or some remaining builder units, we cannot use this as reference.

                  There is no apt beyond 4K after Shols (apart from Hira).
                  3.5K seems to be median price now for most projects in this area.

                  Albatross, NAPC are in this range of 3.4K & 3.75K.
                  Green 201, Pacifica are cheaper at 3K.

                  I think the market in OMR became slower in last few months, prices have not moved from 2011 even though contruction cost has sky rocketed.

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                  • Re : Property Price Trends in Chennai

                    Originally posted by k11 View Post
                    I think the market in OMR became slower in last few months, prices have not moved from 2011 even though contruction cost has sky rocketed.
                    I guess builders may be able to regulate labor costs thru some way! but do u know if builders hoard raw materials like cement etc in heavy quanitites to remain unaffected from price increases?

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                    • Re : Property Price Trends in Chennai

                      Originally posted by vettipayyan View Post
                      I guess builders may be able to regulate labor costs thru some way! but do u know if builders hoard raw materials like cement etc in heavy quanitites to remain unaffected from price increases?
                      May be they have hoarded materials but I do not think anyone would have foreseen such a price increase. Labor costs went up 40% in the last 1.5 years. Day labor is now 550+.

                      One of my friends is a tile supplier to builders in Bombay region, I heard that the builder pay late and getting money out of them is a pain. So I think most of them do not buy materials for future use.

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