Hi Friends,

I had been to the FAIRPRO '09 Fair.My Impression after seeing, is that prices are stagnating for all ongoing projects and builders are trying hard to hold them up.

Prices are 10-20% lower for new projects in the pipeline and for ready to occupy flats.

The discount offered at the stall was very less and were in the range 150-500 Rs/sqft max.

For the benefit of fellow members I am posting the project/price details of some of the properties.



Akshaya Foundations

Adora - OMR - 3750/sqft
Aikya - Adyar - 12500/sqft

Alliance Group - Orchid Springs - 3199/sqft

Arihant Foundations

Heirloom - Thalumbur - 2499/sqft
Escapade - Thoraipakkam - 4150/sqft
Villa Viviana - Maramalai nagar - starting from 1 Crore

Asvini Foundations

Amarisa-phase1 - Ramapuram - 4500/sqft
Amarisa-phase2 - Ramapuram - 4250/sqft
Akshita - Madipakkam - 3800/sqft

Casa Grande

Riveira - Palikkarnai - 3450/sqft - before discount 3600/sqft
Silver Oak - Perungudi - 4300/sqft - before discount 4500/sqft
Madhuban - Madipakkam - 3300 /sqft - before discount 3500/sqft
Mylapore - R.K.salai - 12500/sqft
Plots
Ponmar -785/sqft - before discount 825/sqft
Maraimalainagar - 790/sqft - before discount 825/sqft

CeeDeeyes - Chenni Pattinam

Basic Rate - 1600/sqft All Inclusive - 2075/sqft

Chaitanya shanthiniketan

Sunnyvale - Ayanavaram - 4850/sqft
Serena - Rajkilpakkam - 2550/sqft
Gardenia - OMR - 1900/sqft
Green Park - Chitlapakkam - 3300/sqft

DLF

Gardencity - 3200/sqft - was told slash in prices expected in coming weeks.

Doshi Housing

Etopia I and II - Perungudi - 3895/sqft
Nakshatra - Tambaram - 2995/sqft - Completion May 2010
Tranquil - Velachery - 5500/sqft - Completion February 2010
Trinity park - Santhoshpuram,Vengaivasal - 3195/sqft - Completion April 2009
Serene Couny-Villas - Santhoshpuram,Vengaivasal - 2200,2600/sqft
LlanStephan - Chetpet - 9000/sqft - Completion May 2009
Sri Mahalakshmi - Ayanavaram - 4495/sqft - Ready to Occupy

ETA

Rosedale - OMR - 3100/sqft
Le Chalet - Villas - Sriperambudhur - 26 Lakhs - 37 Lakhs

Hiranandani Upscale - 4200/sqft

Hiranandani Palace Gardens - 3475/sqft

Indus Housing

anantya - Navalur,OMR - 2299/sqft + 400(other charges)
riviera villa - Navalur,OMR - 90 Lakhs onwards
habittera - urapakkam,GST - 2399/sqft + 400(other charges)
amber - Saidapet - 4750/sqft

Jain Housing

Ankush Prakas - Kilpauk - 7500/sqft - Ready to occupy
Amrit Kailash - Strahns Road - 4500/sqft - Ready to occupy
La Gardenia - Nungabakkam - 7500/sqft - Ready to occupy
Ansruta - Valluvarkottam, nungabakkam - 10000/sqft - Ready to occupy
Antariska - Kodambakkam - 4500/sqft - Ready to occupy
Eiffel Garden - Vadapalani - 4250/sqft - Ready to occupy
Saagarika - M.R.C Nagar, sea facing - 10000/12500 - Ready to occupy
Green acres - Pallavaram - 3900/sqft - Ready to occupy
Abhishek - Selaiyur - 3500/sqft - Ready to occupy.

Jamals

Orchid - Palikkarnai - 3500/sqft
Palazzo - keelkattalai - 3700/sqft
Grandeur - Velappanchavadi(near saveetha dental college) - 3200/sqft

KGEYES

3 Projects on L.B.Road, Thiruvanmiyur - 6650/sqft
Delmare - Beach road,Thiruvanmiyur - 7000/sqft
Carolina - Velachery,Taramani - 4500/sqft
Swathi - Sastri Nagar,Adyar - 8500/sqft
Kalakshetra - 8000/sqft

Landmark Constructions

Tiara - Perungudi - 4000/sqft - Completion on August 2009
Aston Ville - Vadapalani - 5500 sqft - Completion on July 2009
Tudors Place - K.K.Nagar - 6500/sqft
The Address - Adyar - 11500/sqft
The Grange - Palavakkam - 7500/sqft
Cenralia - Chrompet - 2950/sqft - prelaunch
Gem Towers - AnnaNagar - To be launched.
Mahalakshmi Heights - Ashok Nagar - To be launched

L&T Estancia
Construction in Progress
1st-3rd Floor - 3950/sqft
4th -12 floor - floor rise charge of 20/sqft for each floor
13th - 17th - 4450/qft

L&T Eden Park - 3600/sqft

Mantri Synergy - OMR
2800/sqft - with 20/floor rise
Special offer - First Floor - all inclusive
1140 sqft - 33,67,000
870 sqft - 28,50,000

Navin Housing

Dayton Heights - Nelson Manickam road - 6500/sqft + 30/sqft floor rise from 2nd floor
Subha Mangala - Ramapuram - 4200/sqft
Brookfield - Nanmangalam - 3500/sqft
Merrylands - Medavakkam - 3500/sqft

Olympia Opaline - 3441/sqft - spl budget flats available

PACE Builders

Anna nagar west - 4195/sqft - before discount 4495/sqft
Selaiyur - 3195/sqft - before discount 3495/sqft
Valasarvakkam - 2795/sqft - before discount 3295/sqft

PS Srijan

The Grand - Velachery - 5250 sqft - before discount 5500/sqft - Floor Rise applicable from 4th floor

Rajparis

Harmony - Medavakkam - 3100/sqft

Rajarathnam Constructions

RC Prince Gardenia - Perambur redhill road,Kolathur - 3600/sqft

Rajkham

Independant houses - Ayyapathangal - 2600/sqft

Real Value

Sai Skanda - Velachery - 4200/sqft
Sai Surya - Palikaranai - 3800/sqft
OMR opp SIPCOT - 13.20 Lakhs onwards

Shriram Properties

Trishakti - SIPCOT - 2750/sqft
Shankari - 1990/sqft

Sidharth foundations

Tulip - k.k.nagar west - 4800/sqft - completion march 2009
Natura - medavakkam - 3100 /sqft - completion july 2009
Visvaleela - Annanagar - 8500 /sqft - to be launched
Dakshin - Urapakkam - price TBD - to be launched
upcoming projects in porur, thoraipakkam, rajkeelpakkam, mogappair.

SIS

Safaa - Urappakam - 3150/sqft

SSPDL

Crescent - Kelambakkam - Vandalur Road - 2500/sqft
Upcoming 2 villa project one in OMR and one in Sriperambathur.

Sumanth & Co

Thiruvanmiyur - 6000/sqft
Besant Nagar - 11500/sqft

TVH

Lumbini square - Pursaiwalkam - 5500/sqft + 30/sqft floor rise from 5th floor
Ouranya Bay(Premium) - OMR,Padur - 3100,3200 + 25/sqft floor rise from 5th floor
Ouranya Bay(Budget) - 2bhk - 20 Lakhs
3bhk - 30 Lakhs
Ekanta - Coimbatore - 3100/sqft
Revata - Mogappair east - 4500/sqft
Kamya - K.K,Nagar - 7000/sqft
Metro Golden Nest - Sriperambathur - 1bhk - 15 Lakhs
2bhk - 22 Lakhs
3bhk - 28 Lakhs

VGN Group

Minerva - Mogappair,Nolumbur - 2975/sqft
3 in 1, 4 in 1 - 3800/sqft
Mahalakshmi Nagar,Thiruverkadu - 3500/sqft
Plots
Mugalivakkam - 52 Lakhs/grnd
Selaiyur - 50 Lakhs/grnd
SPKoil - 34 Lakhs/grnd
Katankulathur - 22-27 Lakhs/grnd

Yuga Homes

Shem Park - chemmenachery - 3300/sqft
Upcoming in Koyambedu, R.A.Puram(8000/sqft)



There are lots of properties and also lots of potential buyers.There is sure a sense of uncertainity among the builders and also the buyers on when to make the next move.It was evident that correction in RE prices have started to happen.

Requesting members to respond with their thoughts on the current trend.
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  • Originally Posted by kannan1
    Yes true, whatever i mentioned it is mid range not high end. But this mid range projects also are not happening in ponmar now.

    I need suggestion on buying a plot near thalambur ( near Grand ellora project ). I have also seen the video which is showing the route to grand ellora place. I just want to know will it be ok if we buy land near to that.
    do you have any price range details in that area?


    L4L posted that Video.

    Yes, it is scary to think people buy Villas for crores in interior areas.
    But that is the market, most Villa projects are in interior areas, the ones on Main road are expensive. Developers put apt projects on main road and do Villas on backside or interior portions.

    I do not know the prices, may be some one else can answer that,
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  • Originally Posted by k11
    L4L posted that Video.

    Yes, it is scary to think people buy Villas for crores in interior areas.
    But that is the market, most Villa projects are in interior areas, the ones on Main road are expensive. Developers put apt projects on main road and do Villas on backside or interior portions.

    I do not know the prices, may be some one else can answer that,


    Can anybody gives the price for this location ( near grand ellora )?

    Yes, It is really scary and the price also too much for that area. It is really good video to understand the real situation. I think the original video is taken by one of the sales guy in VIP ( May be on the site visit trip ). But whoever saw the video will have negative effect on that project.

    As you said most of the villa projects are interiors area only not on the main area.

    But one practical point is even though if one project is good how much i can able to afford? If i am not able to afford the best project then i need to find the place where i can afford.
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  • Residential prices in Chennai fall for first time in 3 years

    CHENNAI: Stubbornly high mortgage rates coupled with high real estate prices pushed down NHB Residex - an index used to track the movement of prices in the residential housing segment, for Chennai during the March quarter.


    The Residex, developed by the National Housing Bank with inputs from RBI and CSO tracks the movement in prices of residential properties on a quarterly basis since 2007. Chennai's index for the January—March quarter was 310 as against 314 during October--December 2012. The base year for the calculation of the index is 2007 and the base is 100.

    Of the 10 residential zones in the city as computed by NHB, in 6 zones real estate values fell while in one it was unchanged and in three there was an increase. Prices dropped the most in Mylapore, Adyar, Velachery and Thiruvanmiyur by nearly 11% between October-December quarter and January—March quarter.

    "Prices were tepid earlier this year. High interest rates forced buyers to hold back purchases. But overall there is a recovery in the markets in the past few weeks as buyers expect a cut in lending rates for home loans," said managing director of Isha Homes Suresh Krishn.

    Residential prices witnessed a rise in Mumbai, Bangalore and Delhi while it dropped in Chennai and Kolkata. "We are witnessing slowdown in sales. This has resulted in developers dropping prices. The Residex was rising for 11 quarters and has dropped for the first time since then," said the zonal head at mortgage lender HDFC Mathew Joseph.

    "Smaller real estate players are in a trap as there isn't enough bank funding for projects which were linked to cash flows from sales, therefore delaying project completion ," a real estate consultant said.

    Residential prices in Chennai fall for first time in 3 years - The Times of India
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  • Not surprising but hoarders will not allow the descend to strengthen further...with speculators are pretty much nailed with 20% TDS, you wont see fake transaction that much going forward, will spiral down the demand further.
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  • We are reaching a point now where first time buyers are looking at a minimum 4000/sqft for buying a flat at more than 50 Lakhs. The big township residential projects were supposed to cater to this demand..but instead we find because of the lack in infrastructure development and distance people are preferring localities like say medavakkam/selaiyur instead of a gated township in padur/siruseri. Inside the city we are finding two extremes, one the large 4C+ flats or tiny pigeon hole apartments for 1C. The sweet spot of 40-60 lakhs is the only area which is seeing conversions. With the investors/speculators being put away..I think its a nice time for genuine buyers to look for a good deal. Re-sale will begin to look attractive this year IMO.
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  • Resale units in city are always attractive.
    This period until 2013-14 is a good time to buy, it is a slow market and there could be some deals available.

    I think, with the new units slowing down in suburbs, the resale activity in suburb might also pick up.
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  • New apartment cost will stay the same due to high material and labor costs. Resale apartments may have to price competitively to sell in not so hot areas.

    It is the plots that will take a hit. End user related plot purchase has gone down dramatically and will continue to do so. Speculative plot purchasing can only go so far beyond a price point.
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  • Conflicting theories

    Now comes the contradictions

    All along many members claimed that RE pricing will not go down because of increasing raw material, labor shortage,inflation, devaluing INR
    But suddenly after seeing the NHB index read out, the market read is changing now towards possible deals on the horizon.

    Supply / Demand will dictate, Flat supply seems to high over demand and have been voicing this since January after my last chennai visit. I still hold my views that good Villa projects will have a steady demand.
    Land prices at north of 2000-2500 will see stagnation , all unapproved patta lands will see stagnation, speculative investor markets will see less vyabari transactions. again this is my opinions
    NRI transactions will be steady with appreciating currencies and prospective deals in the market as expected.
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  • Originally Posted by SRajagopalan
    Now comes the contradictions

    All along many members claimed that RE pricing will not go down because of increasing raw material, labor shortage,inflation, devaluing INR
    But suddenly after seeing the NHB index read out, the market read is changing now towards possible deals on the horizon.

    Supply / Demand will dictate, Flat supply seems to high over demand and have been voicing this since January after my last chennai visit. I still hold my views that good Villa projects will have a steady demand.
    Land prices at north of 2000-2500 will see stagnation , all unapproved patta lands will see stagnation, speculative investor markets will see less vyabari transactions. again this is my opinions
    NRI transactions will be steady with appreciating currencies and prospective deals in the market as expected.


    The contradiction is more of a paradox. Its like how one expects RE prices to go down while hoping their affordability increases with promotion/hike so that they can buy their dream house. But long term, the person buying would also want the RE price to go up..

    One has to be clear against which benchmark they are going to compare to arrive at a buying decision. The choice is relative to each inidvidual and cannot be generalized. In a location, when a new project is selling at 10K..a 2-3 years old flat at 7K is a good buy. For a person who is not worried about the location, buying a bigger new flat at 7K/sqft 2-3 kms away is a value buy. Similarly the base price we compare also gives a different picture, a higher priced project will give slower appreciation but maybe well planned and specced. ROI will not give true picture of value. Getting attractive/value deals and getting cheap deals are not the same.

    Sentiments are very important for any investments, when the mood is dull the spotlight is away and people are hesitant to take any decision. How many can confidently put their money knowing its going to get hard to make profit? Only people who have vested interest like family in location, wealth for heirs and genuine necessity will venture. Speculation will come down. I am sure it applies to people sitting on appreciating currency and huge money also. RE is highly illiquid asset and one could be forced to sell at half the price if in distress to find buyers. A slow market is the time we will have genuine buyers/sellers with whom its easier to make a hassle-free deal.
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  • Originally Posted by nabishek
    The contradiction is more of a paradox. Its like how one expects RE prices to go down while hoping their affordability increases with promotion/hike so that they can buy their dream house. But long term, the person buying would also want the RE price to go up..

    One has to be clear against which benchmark they are going to compare to arrive at a buying decision. The choice is relative to each inidvidual and cannot be generalized. In a location, when a new project is selling at 10K..a 2-3 years old flat at 7K is a good buy. For a person who is not worried about the location, buying a bigger new flat at 7K/sqft 2-3 kms away is a value buy. Similarly the base price we compare also gives a different picture, a higher priced project will give slower appreciation but maybe well planned and specced. ROI will not give true picture of value. Getting attractive/value deals and getting cheap deals are not the same.

    Sentiments are very important for any investments, when the mood is dull the spotlight is away and people are hesitant to take any decision. How many can confidently put their money knowing its going to get hard to make profit? Only people who have vested interest like family in location, wealth for heirs and genuine necessity will venture. Speculation will come down. I am sure it applies to people sitting on appreciating currency and huge money also. RE is highly illiquid asset and one could be forced to sell at half the price if in distress to find buyers. A slow market is the time we will have genuine buyers/sellers with whom its easier to make a hassle-free deal.


    so is the going in theory that the buyer sentiment is dull ?
    What are some of the primary reasons can it be elaborated

    Weaking economy
    Shrinking gdp
    increasing inflation
    Higher gas/diesel prices
    Asset bubble
    loss of jobs, unemployment
    Paycuts, Bonus reductions ?

    What are the top 5 reasons ?
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  • Originally Posted by SRajagopalan
    so is the going in theory that the buyer sentiment is dull ?
    What are some of the primary reasons can it be elaborated

    Weaking economy
    Shrinking gdp
    increasing inflation
    Higher gas/diesel prices
    Asset bubble
    loss of jobs, unemployment
    Paycuts, Bonus reductions ?

    What are the top 5 reasons ?


    You must say top 10 reasons and you have already quoted all of them!!

    Most importantly, builders and government are the main culprit for not building infrastructure but collecting tax from all sides while all builders(no exceptions here, please) are honestly cheating all buyers...

    It is a lose-lose situation for anyone venturing into RE unless they are part of the system.
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  • Originally Posted by SRajagopalan
    so is the going in theory that the buyer sentiment is dull ?
    What are some of the primary reasons can it be elaborated

    Weaking economy
    Shrinking gdp
    increasing inflation
    Higher gas/diesel prices
    Asset bubble
    loss of jobs, unemployment
    Paycuts, Bonus reductions ?

    What are the top 5 reasons ?


    It could be that more and more people realizing that, at these prices, does it really make sense to call RE as an investment or for end use. If the price is right, above has no bearing on what you are buying in to. Attribution to various reasons is our reasoning but the most ignored reason is the price itself. Markets often take triggers for correction which may not have much correlation to the correction per se.

    Our RE, for the majority, is a momentum driven asset class as for as pricing goes. What derails the momentum could be many - like in the reasons above, it could be a NHB residex index or call it a regulation bill. They just take the blame but the reason lies with the price.

    Mav
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  • Price is a very important factor but what is the use of Amarprakash kind of price but never going to finish. Someone here mentioned long back one of the Arun Excello type builder ready to reduce the rate from Rs 3700 to somewhere closer to Rs 2500....But careful buyer would question this as well.
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  • Numerical price is different from Value-adjusted-price Amarprakash can be expensive when compared to higher priced ones in that regard.
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  • Originally Posted by maverick007
    It could be that more and more people realizing that, at these prices, does it really make sense to call RE as an investment or for end use. If the price is right, above has no bearing on what you are buying in to. Attribution to various reasons is our reasoning but the most ignored reason is the price itself. Markets often take triggers for correction which may not have much correlation to the correction per se.

    Our RE, for the majority, is a momentum driven asset class as for as pricing goes. What derails the momentum could be many - like in the reasons above, it could be a NHB residex index or call it a regulation bill. They just take the blame but the reason lies with the price.

    Mav


    The interesting perspective is the very exact same valuation/price point on a rising market will be seen as a steal and a falling market will be viewed as over valuation and bubble
    Ex AAPL at 450 or a flat in perumbakam at 3500rs a sqft as examples -- im not comparing them , just examples - so people relax...dont start with how can you compare AAPL to embassy residency ;)
    If you stand down the mountain and look at it its value, if you are on the top of the mountain and look at it its scarry .
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