Dear friends

Since there is slump in the sales of RE properties in Chennai, the bull writers are not accepting the fact that prices are crashing.

But a valid proof for this has appeared in todays newspaper.

According to Times of India, Udhayam theatre property's (1.2 acre) base price for auction sale has been brought down from Rs.100 Cr to just Rs.29 crore.

This price is arrived after analysing all the possibilities.

The reason: There is not even a single bidder for this prime property which abuts two arterial roads.

I hope a clear picture is emerging regarding the price of chennai properties.

Here is the link : ]http://epaper.timesofindia.com/Daily/skins/TOINEW/navigator.asp?Daily=TOICH&showST=true&login=default
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  • Originally Posted by nabishek
    Dear Friend,

    I think abk meant SBI wouldn't fall.

    By the way, if you weren't aware.SBI has $5 million exposure to Lehmann and they hope to recover only 60-70%.Its wrong to say they are decoupled.

    apart from that SBI has heavy exposure to realty firms like maytas,unitech etc.No one really knows how overlevaraged they are.

    If they bank is under RBI regulations, dont take it for granted that things will be safe and the banks can never fail.

    The strict regulation by RBI governing cash reserve ratio(CRR) and Foreign Direct Investment(FDI) is what is protecting our econonmy.



    Dear friend

    Our present congress govt. has waived off Rs. 50,000 crores of farmers loan.
    This money is given from nationalised banks. This action will definitely affect all the PSU banks

    Thanks

    chataara
    CommentQuote
  • Dear friend,

    I agree. Irrespective of RBI directives protecting the PSU banks, the politicians are not bothered about the PSU banks due to their vote bank politics. They will hasten up the process of downtrend for the PSUs for their ultimate loss and even leading to mergers or the least likely closure.

    ks2071476
    CommentQuote
  • Originally Posted by ks2071746
    Dear friend,

    I agree. Irrespective of RBI directives protecting the PSU banks, the politicians are not bothered about the PSU banks due to their vote bank politics. They will hasten up the process of downtrend for the PSUs for their ultimate loss and even leading to mergers or the least likely closure.

    ks2071476


    Dear friends

    Times of India dated 19-4-09 has reconfirmed the collapse of chennai real estate.

    Udhayam theatre property has no takers even after reducing the upset price to Rs.29 crore.

    So far only one person has paid the base amount, the auction has been cancelled and the deadline has been extended to 22-4-2009.

    This is the case all over the chennai. Buyers has lost interest in real estate.

    Thanks

    chataara
    CommentQuote
  • Originally Posted by chataara
    Dear friends

    Times of India dated 19-4-09 has reconfirmed the collapse of chennai real estate.

    Udhayam theatre property has no takers even after reducing the upset price to Rs.29 crore.

    So far only one person has paid the base amount, the auction has been cancelled and the deadline has been extended to 22-4-2009.

    This is the case all over the chennai. Buyers has lost interest in real estate.

    Thanks

    chataara


    chattara there are many other factors which would deter a buyer

    an auction means all white

    it means immidiate payment and many times it is as is where is basis and
    no guarantee of possesion most of the DRT auctions are so.

    generally a person who buys such big props will
    finalize the price pay a token- get legal clearance-give a newspaper ad-
    and then pay an advance sign a MOU or agreement and then settle the money within reasonable time as agreed(3 to 9 months).
    here he has to pay within 15 days.

    58 people for a property is rarest of rare case. most RE expierienced buyers would not even look at properties with so many owners.who knows who has encumbered his share and then face litigation which would drag the entire property.

    the biggest concern is possesion it is not vacant .
    courts when the matter goes into court it by itself kills many would be buyers.there are hundreds of litigated properties.one big example is hotel dasaprakash.
    what do you expect just bcoz it is in a prime location it will sell just like that.
    you know raptakos property in velachery,prime location it is in dispute for past 8 yrs and is still unable to sell.

    The best example of a prime real estate lying useless is the proposed magunta oberoi hotel site on mount road next to DMK's office
    75% completed and no takers bcoz of litigations.
    and top it all they were not able to solve it even in the boom.
    litigated properties will lie unsold even if there is a bigger boom.
    CommentQuote
  • Originally Posted by abk
    chattara there are many other factors which would deter a buyer

    an auction means all white

    it means immidiate payment and many times it is as is where is basis and
    no guarantee of possesion most of the DRT auctions are so.

    generally a person who buys such big props will
    finalize the price pay a token- get legal clearance-give a newspaper ad-
    and then pay an advance sign a MOU or agreement and then settle the money within reasonable time as agreed(3 to 9 months).
    here he has to pay within 15 days.

    58 people for a property is rarest of rare case. most RE expierienced buyers would not even look at properties with so many owners.who knows who has encumbered his share and then face litigation which would drag the entire property.

    the biggest concern is possesion it is not vacant .
    courts when the matter goes into court it by itself kills many would be buyers.there are hundreds of litigated properties.one big example is hotel dasaprakash.
    what do you expect just bcoz it is in a prime location it will sell just like that.
    you know raptakos property in velachery,prime location it is in dispute for past 8 yrs and is still unable to sell.

    The best example of a prime real estate lying useless is the proposed magunta oberoi hotel site on mount road next to DMK's office
    75% completed and no takers bcoz of litigations.
    and top it all they were not able to solve it even in the boom.
    litigated properties will lie unsold even if there is a bigger boom.


    In the same article abk might not have seen the below lines

    A realtor said, "We are keenly watching the deal. A year ago, I myself would have pitched for it. But now, I am watching with the hope that it will give a fresh lease of life for the sagging realty market."
    CommentQuote
  • Dear friend,

    You have given more picture about the property. Yet another property is in the erstwhile Gemini Studios complex near Gemini/Anna Fly Over in Mount Road. A multistory office complex remain incomple for so many years, I think atleast over 15 years, any further details on this pl.?

    ks2071746
    CommentQuote
  • Originally Posted by BigBear
    In the same article abk might not have seen the below lines

    A realtor said, "We are keenly watching the deal. A year ago, I myself would have pitched for it. But now, I am watching with the hope that it will give a fresh lease of life for the sagging realty market."


    realty market is affected and so is everything else.the point of debate is how bad?
    have you ever been to a DRT auction.hundreds of properties come for auction
    ask any realtor(builder) if they have purchased in the auction.no one does.
    like HIV even properties in litigation or with banks do carry a stigma .and many people dont buy these.how many of us have ever responded to a bank auction notice.I have been to few DRT auctions and the bidders there are a seperate group who buy these properties at pittance.clear it and then sell it.
    it is very profitable you get a "cutting" for not bidding higher.

    try putting an ad in the paper for a prime land you will get calls only from brokers very few builders will call you some individuals may. but the builders mostly go thru brokers and will not buy directly unless they know the seller.
    the RE market has its own mechanisms.
    it is generelly construed that an auction property has, by default some unwanted 'baggages' attached to it.
    so the case of udayam is not a benchmark.
    CommentQuote
  • Originally Posted by abk
    realty market is affected and so is everything else.the point of debate is how bad?
    quote]

    Bears have already given enough instances where price have dropped drastically.Here is another one from Business-standard.


    Houses Crash

    It was some crash about which I heard today. A friend, I have known since the early ’80s, is in a state of near-shock and, now laughs and cries at the same time, by merely thinking of what’s happened to their investment.
    Imagine in investment of yours crashing about 60 per cent in just over an year. She had bought a flat for Rs 75 lakh. It was meant to be an investment. Everything was rosy with the real estate then.
    The ‘experts’ in real estate always say “location, location, location” when you consider buying a property. That is precisely what she thought when buying the flat. After-all it was barely 10 or 12 km from the international airport, which is very near to the airport for someone familiar with Bangalore.
    About a month or two ago, she tried to find out what’s happened to her investment now that there are frequent news reports about the property market bouncing back. She had missed the opportunity to sell when the market had peaked, she thought. On trying to sell their property. instead of earning a profit, the highest price being quoted was Rs 30 lakh. They had rented out the flat and are now happy with whatever rent they are getting.
    That left me wondering what must happened to the ‘investments’ at the other end of the city where there is not even water. The borewells have dried up. Many of them are high-end flats going up to Rs 1 crore or more. Today they got no water and any water they get is supplied on water tankers.
    OK, back to my friend. She’s now praying that the hopes of a ‘V’ shaped recovery happens in the property market as many hope will happen with the general economy. But, that could take time in case of the real estate sector.realty market is affected and so is everything else.the point of debate is how bad?
    quote]

    Bears have already given enough instances where price have dropped drastically.Here is another one from Business-standard.


    Houses Crash

    It was some crash about which I heard today. A friend, I have known since the early ’80s, is in a state of near-shock and, now laughs and cries at the same time, by merely thinking of what’s happened to their investment.
    Imagine in investment of yours crashing about 60 per cent in just over an year. She had bought a flat for Rs 75 lakh. It was meant to be an investment. Everything was rosy with the real estate then.
    The ‘experts’ in real estate always say “location, location, location” when you consider buying a property. That is precisely what she thought when buying the flat. After-all it was barely 10 or 12 km from the international airport, which is very near to the airport for someone familiar with Bangalore.
    About a month or two ago, she tried to find out what’s happened to her investment now that there are frequent news reports about the property market bouncing back. She had missed the opportunity to sell when the market had peaked, she thought. On trying to sell their property. instead of earning a profit, the highest price being quoted was Rs 30 lakh. They had rented out the flat and are now happy with whatever rent they are getting.
    That left me wondering what must happened to the ‘investments’ at the other end of the city where there is not even water. The borewells have dried up. Many of them are high-end flats going up to Rs 1 crore or more. Today they got no water and any water they get is supplied on water tankers.
    OK, back to my friend. She’s now praying that the hopes of a ‘V’ shaped recovery happens in the property market as many hope will happen with the general economy. But, that could take time in case of the real estate sector.
    CommentQuote
  • one of my friend bought a 3 year old apartment in adyar during august 08 for 1 cr excluding registration.its a 1200 sq ft flat in indira nagar.recently the flat is going for only 60 lacs.thats 40% reduction.
    CommentQuote
  • Check the fall in property rates across India in the below link

    ]http://wealth.moneycontrol.com/features/cities/finally-property-rates-have-fallen-/12822/2
    CommentQuote
  • Originally Posted by BigBear
    Check the fall in property rates across India in the below link

    ]http://wealth.moneycontrol.com/features/cities/finally-property-rates-have-fallen-/12822/2

    here is the data from the url

    FINALLY, property rates have fallen!

    Elda Christy April 21, 2009
    Property rates in Pune (Rs)

    LocationMarch '08
    March'09
    difference in %

    Koregaon Park 9000
    8500
    -5.56

    Boat Club Road
    10500
    11500
    9.52

    Deccan
    7250
    7250
    0

    Sopan Baug/Uday Baug
    4000
    3500
    -12.5

    Kalyaninagar
    6500
    6750
    3.85

    Aundh
    4750
    5200
    9.47

    Hadaspar
    4750
    4500
    -5.26

    Kothrud
    5400
    4500
    -16.67

    Vimanagar
    4000
    3750
    -6.25

    Wanorie
    3250
    3600
    10.77

    Kondhwa - Undri3500
    3150
    -10

    Karwe Road
    4250
    5000
    17.65





    pune is not too bad??????

    Koregaon Park 9000
    8500
    -5.56

    Boat Club Road
    10500
    11500
    9.52

    Deccan
    7250
    7250
    0

    Sopan Baug/Uday Baug
    4000
    3500
    -12.5

    Kalyaninagar
    6500
    6750
    3.85

    Aundh
    4750
    5200
    9.47

    Hadaspar
    4750
    4500
    -5.26

    Kothrud
    5400
    4500
    -16.67

    Vimanagar
    4000
    3750
    -6.25

    Wanorie
    3250
    3600
    10.77

    Kondhwa - Undri3500
    3150
    -10

    Karwe Road
    4250
    5000
    17.65





    pune is not too bad??????

    Koregaon Park 9000
    8500
    -5.56

    Boat Club Road
    10500
    11500
    9.52

    Deccan
    7250
    7250
    0

    Sopan Baug/Uday Baug
    4000
    3500
    -12.5

    Kalyaninagar
    6500
    6750
    3.85

    Aundh
    4750
    5200
    9.47

    Hadaspar
    4750
    4500
    -5.26

    Kothrud
    5400
    4500
    -16.67

    Vimanagar
    4000
    3750
    -6.25

    Wanorie
    3250
    3600
    10.77

    Kondhwa - Undri3500
    3150
    -10

    Karwe Road
    4250
    5000
    17.65





    pune is not too bad??????

    Koregaon Park 9000
    8500
    -5.56

    Boat Club Road
    10500
    11500
    9.52

    Deccan
    7250
    7250
    0

    Sopan Baug/Uday Baug
    4000
    3500
    -12.5

    Kalyaninagar
    6500
    6750
    3.85

    Aundh
    4750
    5200
    9.47

    Hadaspar
    4750
    4500
    -5.26

    Kothrud
    5400
    4500
    -16.67

    Vimanagar
    4000
    3750
    -6.25

    Wanorie
    3250
    3600
    10.77

    Kondhwa - Undri3500
    3150
    -10

    Karwe Road
    4250
    5000
    17.65





    pune is not too bad??????
    CommentQuote
  • Originally Posted by BigBear
    Check the fall in property rates across India in the below link

    ]http://wealth.moneycontrol.com/features/cities/finally-property-rates-have-fallen-/12822/2

    chennai prices from the link above

    FINALLY, property rates have fallen!

    Elda Christy April 21, 2009
    ="http://wealth.moneycontrol.com/sendtofriend.php?id=12822&flag=c&url=/showstory.php?
    Property rates in Chennai (Rs)

    LocationMarch '08
    March '09
    difference in %

    Egmore/Kilpauk5500
    5250
    -4.55

    Boat Club
    16000
    16000
    0

    Poes Garden
    14500
    13750
    -5.17

    T Nagar
    7150
    7000
    -2.10

    RA Puram
    8750
    8500
    -2.86

    Ashok Nagar
    5500
    5500
    0

    Guindy
    4500
    3750
    -16.67

    Vadapalani
    4400
    3750
    -14.77

    where is the 80% fall bigbear????

    Egmore/Kilpauk5500
    5250
    -4.55

    Boat Club
    16000
    16000
    0

    Poes Garden
    14500
    13750
    -5.17

    T Nagar
    7150
    7000
    -2.10

    RA Puram
    8750
    8500
    -2.86

    Ashok Nagar
    5500
    5500
    0

    Guindy
    4500
    3750
    -16.67

    Vadapalani
    4400
    3750
    -14.77

    where is the 80% fall bigbear????

    Egmore/Kilpauk5500
    5250
    -4.55

    Boat Club
    16000
    16000
    0

    Poes Garden
    14500
    13750
    -5.17

    T Nagar
    7150
    7000
    -2.10

    RA Puram
    8750
    8500
    -2.86

    Ashok Nagar
    5500
    5500
    0

    Guindy
    4500
    3750
    -16.67

    Vadapalani
    4400
    3750
    -14.77

    where is the 80% fall bigbear????

    Egmore/Kilpauk5500
    5250
    -4.55

    Boat Club
    16000
    16000
    0

    Poes Garden
    14500
    13750
    -5.17

    T Nagar
    7150
    7000
    -2.10

    RA Puram
    8750
    8500
    -2.86

    Ashok Nagar
    5500
    5500
    0

    Guindy
    4500
    3750
    -16.67

    Vadapalani
    4400
    3750
    -14.77

    where is the 80% fall bigbear????
    CommentQuote
  • Dear friend,

    These rates indicated do not seem to exhibit the reality in RE field. So many key areas of Chennai are left out like OMR, Velachery, Tambaram, Annanagar, Perambur, Selayur, Madipakkam etc.

    ks2071746
    CommentQuote
  • the link was posted by Bigbear saying prices have crashed. when I saw the
    the data the prices have corrected on an average around 10% only. the data given does not include all of chennai or bangalore but atleast it shows areas that have not fallen by 50% as claimed in this forum . this atleast shows that rates have not crashed across geographies.The link was posted by bigbear claiming a RE crash
    CommentQuote
  • Big Bear,

    Where is that apartment 10-12 km from Devanhalli International Airport in Bangalore whose price has dropped from 75 lakh to 30 lakh in last year.

    Is it in Yelahanka, Vidyaranyapura, Hennur Road, Malleshwaram, R.T Nagar please tell I am curious :D
    CommentQuote