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Property Price Trends in Chennai

Last updated: 4 weeks ago
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  • #81

    #81

    Re : Property Price Trends in Chennai

    Exactly.

    Do not any real estate for next 2 years

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    • #82

      #82

      Re : Property Price Trends in Chennai

      Originally posted by Nataraajg007 View Post
      Exactly.

      Do not any real estate for next 2 years
      Dear friend,

      Now big builders talk about "affordable homes". They advertise like Rs. 1750 to 2500/sq. ft. type of rates. Buit I am of the opinion that these projects by the time the ers get into the flats, may be minimum 2 years from the start of the project and even may be more. This itself will indirectly contribute an equivalent price impact of atleast 10% for a 2 year lock up of atleast 50% of the cost of flat. Also to be added is the heavy maintanence charge which may continue to be in the range of Rs. 1.5 to Rs. 2 per sq. ft. per month. These all add to the cost. Another thing is, initial location inconveniences one will have to face atleast for the first period of a few years till such time the location improves to be a good locality.
      One need to take into so many considerations and decide. For any one needing the flat for personal use, better to choose a locality best suited for their specific needs like Rly. Station, Bus terminus/stand, schools, colleges, office, market, water problems both availability and water logging during rain etc. etc. and even can pay 10 to 15 % higher rate for these conveniences, of course as told earlier, for personal use. For rental or investment purposes, out of own cash in hand, the so called- affordable homes- may also can be a choice if one can wait for a longer period to see the appreciation or return.

      ks2071746

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      • #83

        #83

        Re : Property Price Trends in Chennai

        Originally posted by ks2071746 View Post
        Dear friend,

        Now big builders talk about "affordable homes". They advertise like Rs. 1750 to 2500/sq. ft. type of rates. Buit I am of the opinion that these projects by the time the ers get into the flats, may be minimum 2 years from the start of the project and even may be more. This itself will indirectly contribute an equivalent price impact of atleast 10% for a 2 year lock up of atleast 50% of the cost of flat. Also to be added is the heavy maintanence charge which may continue to be in the range of Rs. 1.5 to Rs. 2 per sq. ft. per month. These all add to the cost. Another thing is, initial location inconveniences one will have to face atleast for the first period of a few years till such time the location improves to be a good locality.
        One need to take into so many considerations and decide. For any one needing the flat for personal use, better to choose a locality best suited for their specific needs like Rly. Station, Bus terminus/stand, schools, colleges, office, market, water problems both availability and water logging during rain etc. etc. and even can pay 10 to 15 % higher rate for these conveniences, of course as told earlier, for personal use. For rental or investment purposes, out of own cash in hand, the so called- affordable homes- may also can be a choice if one can wait for a longer period to see the appreciation or return.

        ks2071746
        Dear ks2071746, I completely agree with you and second your opinion here.

        Any large project launched now would take minimum 2 years for completion of phase I and another 5 years for all ameneties and facilities to be provided.

        The maintainence/club/transport/les conceirges and other charges in these projects are very costly.If one is hoping to rent an apartment in one of these complex, maintainence cost itself works out to huge Rs.5000 every month.

        I still cant understand why floor rise charges should be applicable from 2nd,3rd floor onwards?Upto 8th 9th floor you can still find mosquitoes.Esp in projects adjacent to buckhingam canal.

        The premium and preference charges are just ways to add to the base price.

        Affordable homes are just affordable base price, adding all the additional costs.most of the projects work out 3000+/sqft.Really not affordable.Not value for money.

        Without even getting proper approvals and still in the pre-launch phase why should the builders increase the price by 200/sqft every fortnight?Pleasing their investors seems to me as the only motive.

        Now nearing launch, they are rolling back to the prelaunch price and calling this gimmick as adjusting to market realities.the price will be increased slowly and will be more than 50% the quoted price if and when its handed over.

        There should be strict norms controlling the escalation of prices and project pre-launches.

        I would rather go with a builder who offers the same price to all their customers irrespective of the project completion stage than the one who has increased it just for the sake of it and offering 20% over 50% inflated price.

        According to me, The price correction for flats should happen in the following phases.

        Phase 1- Correction of Fancy Prices - Reputation of builders will not be able to demand more than 5-10% premium of market price.

        Phase 2 - Correction to Market Price - Falling back to the 2007 price, from when the land prices are stagnating.

        Phase 3 - Correction to Right(Real) Price - Falling back to the inflation/returns adjusted project launch price(read as 2004/2005) with acceptable builders margin and correct FSI factoring.

        We are already in phase 1 officially, and in phase 2 at the negotiation desk.

        The cue for me that we will be entering phase 3 is sharp reduction in rentals and increase in number of new/1-3 years properties for resale.Both we are beginning to witness now.

        If and only If after all the above corrections has happened and we still dont see any increase in demand.

        We will see a Hibernation period i.e 1 - 2 years of very less bu ying/selling activity.More properties coming on resale.No new projects being launched.Projects under construction getting indefinately delayed.Prices for flats will see severe crash and hit rock bottom.The land prices will continue to stagnate and may see significant corrections.During this period purchasers will be spoilt by choice.

        Morning walk period - The industry would witness a brief warming up period.There will be interest and lots of activity and hustle at the end users.New projects will be once again launched and RE will set foot for its next brisk walk, a healthy one.
        Last edited March 9 2009, 02:14 PM.

        Comment

        • #84

          #84

          Re : Property Price Trends in Chennai

          Originally posted by krisharun View Post
          Last year, my brother was very interested to a flat in chennai for a budget of around 35L in Pallikaranai(Outskirt of chennai), i told my brother 2 things:

          1 The Price of Flat in Melbourne in Australia comes around 50-60 lakhs in the decent area, where all hi-tech facilities are there.

          2. Investing in a outskirt of chennai in a budget for 35L will give returns maximum 7000Rs rent per month.

          3.For the same amount investing in Fixed depost in a Nationalised bakn will give 30,000 Rs/month which is 4times the returns of above. The amont invested will double in the next 10 years.

          4. Wait and see for next 2 years.

          He listened my words and invested in FD. He is very happy now with his savings and not bothering for the present situation with his savings.

          I request everyone (particullay engineers), you are all genius in studies but don't be fool while investing in the RE, your job is not secure like other peoples, try to save when lakshmi knocks and invest in a proper way. Just imagine, the total price money of the ICC world cup is 5 Crores....is it worth to 2 grounds in Mylapore...or 5 flats in Purvankara in Kelambakkam????)
          U know what. That logic is valid even in Australia. So why would anyone own a house?
          In Singapore I used to rent a 5I apartment for S$1400p.m. And its value was some 400KS$. So will someone it? Well they did and they do and I am talking of 1996.
          Finally Australia is a poor example of a place. There is too much of place, too little population and the Whities are living out of sucking the world and probably releasing some Uranium here and there.
          That logic wont work in India and Chennai where population is bursting at the seams and usable RE is hardly much. So with high demand and low supply prices will go only one way! UP.
          So before comparing Kangaroos and Elephants first get your ideas ratified by some sane means and then post buddy.
          If someone invested in RBI bonds tax free in 2003 he would have got for every 1000 another 900 more by 2008 but in RE his 1000 in the worst place has become 5000.
          I think these Kangaroos and Bald Eagles on this board are the reason for all the confusions!

          Comment

          • #85

            #85

            Re : Property Price Trends in Chennai

            In the upmarket areas of Chennai there have been no considerable price drops. In Chennai’s Arcot Road, Purasawakkam, Thiruvanmiyur and Valasaravakkam areas, rates still hover between Rs 4,700 and Rs 6,600, about the same a year ago, a dealer says, but prices have fallen by 20-30% in the suburbs. Economic Times.

            Chennai needs more than 50% correction/drop.

            Comment

            • #86

              #86

              Re : Property Price Trends in Chennai

              The Builder bashing is on again ...

              Originally posted by REGuru View Post
              In the upmarket areas of Chennai there have been no considerable price drops. In Chennai’s Arcot Road, Purasawakkam, Thiruvanmiyur and Valasaravakkam areas, rates still hover between Rs 4,700 and Rs 6,600, about the same a year ago, a dealer says, but prices have fallen by 20-30% in the suburbs. Economic Times.

              Chennai needs more than 50% correction/drop.

              As you can see, the media is being used to hammer the builders by the financiers. With volumes falling by as much as 95% (South Delhi) and prices falling in some pockets upto 40% - all this from the EcoTimes report of today; as well as reports on the Web that Banks are now asking Builders to clear their inventory (by crashing prices, what else?), this seems like a concerted move thru media to force builders to bring down prices.

              Whether this will work or will ers use this as another ploy to wait for further drops is to be watched for.

              I believe that prices will keep declining in waves and this is NOT the last wave. Still on track for my minimum target of 50% drop within 1 year from now and maybe more later in pockets.

              cheers

              Comment

              • #87

                #87

                Re : Property Price Trends in Chennai

                Originally posted by wiseman View Post
                As you can see, the media is being used to hammer the builders by the financiers. With volumes falling by as much as 95% (South Delhi) and prices falling in some pockets upto 40% - all this from the EcoTimes report of today; as well as reports on the Web that Banks are now asking Builders to clear their inventory (by crashing prices, what else?), this seems like a concerted move thru media to force builders to bring down prices.

                Whether this will work or will ers use this as another ploy to wait for further drops is to be watched for.

                I believe that prices will keep declining in waves and this is NOT the last wave. Still on track for my minimum target of 50% drop within 1 year from now and maybe more later in pockets.

                cheers
                With the real estate sector showing little signs of revival despite several steps taken by the government and the central bank so far, banks are now asking developers to lower prices to clear their piled-up inventory.

                Even the special home loan package introduced by public sector banks in December had lukewarm response and between December 17 and February 12, public sector banks have cleared only 28,000 proposals and disbursed Rs 1,550 crore through the special scheme.That is another reason banks are pushing builders to cut prices.
                --from Business standard.

                Comment

                • #88

                  #88

                  Re : Property Price Trends in Chennai

                  Originally posted by REGuru View Post
                  In the upmarket areas of Chennai there have been no considerable price drops. In Chennai’s Arcot Road, Purasawakkam, Thiruvanmiyur and Valasaravakkam areas, rates still hover between Rs 4,700 and Rs 6,600, about the same a year ago, a dealer says, but prices have fallen by 20-30% in the suburbs. Economic Times.

                  Chennai needs more than 50% correction/drop.
                  Now that makes sense. In upmarket areas as I always said prices have not reduced one bit, just that wishful thinkers would like price to come down! In suburbs depending on the USABILITY of the place prices will change. So if someone sold a plot in some place 4km from Sriperumbudur with no facility for Rs 1K psft it will drop even to Rs 300 psft if the place does not develop and markets tank but if that same place has had development prices will continue to hover around Rs 1K and might even go up!
                  Ofcourse Wisey will talk of cycles and scooters (LOL!) but all he wants is wishful thinking wanting prices to crash!

                  Comment

                  • #89

                    #89

                    Re : Property Price Trends in Chennai

                    I disagree with Nataraj that the upmarket prices would continue to remain this way. Just wait and see, the pricess in Bangalore has fallen in upmarket areas. It is a question time before it happens in Madras. It is simply untenable to hold on to this price for long.

                    Comment

                    • #90

                      #90

                      Re : Property Price Trends in Chennai

                      Originally posted by REGuru View Post
                      In the upmarket areas of Chennai there have been no considerable price drops. In Chennai’s Arcot Road, Purasawakkam, Thiruvanmiyur and Valasaravakkam areas, rates still hover between Rs 4,700 and Rs 6,600, about the same a year ago, a dealer says, but prices have fallen by 20-30% in the suburbs. Economic Times.

                      Chennai needs more than 50% correction/drop.

                      Dear friend

                      If you happen to speak to a mediator personally, he will tell explain how plots and flats are lying unsold in all places. S ellers keep telling the fancy rate for the last one year. But when they are in urgency they have to give in.

                      Wait and watch..

                      thanks

                      chataara

                      Comment

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