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Suggestions: Chennai City Property Outlook

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Suggestions: Chennai City Property Outlook

Last updated: August 14 2009
26 | Posts
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  • #11

    #11

    Re : Suggestions: Chennai City Property Outlook

    Originally posted by Natarajg007 View Post
    Hmm, suddenly the Contra bull has turned a bear!
    As for Yeskrish, in T.Nagar property prices going down can be something to dream about, not in reality.
    One point to note is India houses 17% of world population and only holds 2.5% of world land area. So even if Indian engineers earn 50% of US salary the price of RE in INdia will be so much more than in US or in many other parts of the world. This is something no RE bear ever seems to understand.
    Infact I would love property prices to crash to 2004 levels but beware our friends on this board wont just lose their jobs, they will actually have to take 2004 salaries and they know how small it was. Maybe even 2000 salaries which will mean that a 10year exp SW engineer can be got for 20K p.m. in the average case (not MNC case).
    So DJI, third leg and other stories by self proclaimed pundits wont let you decide anything.
    If you have the money and the need buy RE. If you want to speculate then that is your call today as also in 2005!
    If property prices always keep increasing, who will invest in Gold/Stocks/Bank Fixed Deposits etc. ???
    Is there any one who wants their money NOT to grow rapidly even when they are assured 0% risk of downside!!
    Higher returns are always tied to risks, there is nothing like only high returns and no risk.
    (Possible only in dreams or Moon.)
    Rent the property fetches is good indicator of what should be the price of anything.
    The difference between rent and cost of owning cannot be very wide, if its wide then
    people would just rent. Even if Salaries have gone up from year 2000, there still exists
    wide gap between rent and cost of owning.
    land-Population ratio also does not indicate or justify rise in property value we had in last few yrs.
    A lower ratio just means we go higer floors and not price.
    Price is always what the buyer can pay. Buying in current market will come with great risks.

    Comment

    • #12

      #12

      Re : Suggestions: Chennai City Property Outlook

      Originally posted by BigBear View Post
      I restarted searching land in chennai-south last month just to get the pulse of the market.

      Prices have reduced around 5-10% or atleast remain stagnant compared to 2008 levels.Not much buying is happening and most of the land
      is with the builders or brokers who have POA and these guys are trying desperately to offload their lands but not willing to reduce the price and not changed their old habits of highhandnes.

      Looks like it will take some more time for these foolish people to understand the dire consequences of great global recession.And by the time they realise they will be under water.
      Nat, appears this is straight away for you. Sell your plots now at the current rates atleast. Otherwise further loss

      Comment

      • #13

        #13

        Re : Suggestions: Chennai City Property Outlook

        Originally posted by lovebird View Post
        Nat, appears this is straight away for you. Sell your plots now at the current rates atleast. Otherwise further loss
        Thanks for your kind words, but I dont listen to feather brained creatures who think their intelligence can be increased by buying brain from the mutton shop! ROTFL!

        Comment

        • #14

          #14

          Re : Suggestions: Chennai City Property Outlook

          One more evidence

          ]http://nhb.org.in/Residex/CHENNAIres.php[/url]

          Comment

          • #15

            #15

            Re : Suggestions: Chennai City Property Outlook

            Immunity

            First these bldrs & industrialist said India is a huge market,


            World recession is not going to affect that much.

            C the result. Even monsoon appears to have subdued.

            Where r the consumers? Can they buy at these unaffordable prices?

            Methinks: RE prices have to stabilise after the tremendous run these

            three yrs. Where r they going to take the prices fm here - Heavens.

            If sellers/bldrs/people dont want to rationalise their prices, they can

            wait for arrival of Prince Charles next heir to India some time in future

            to get their profit fattened price

            Comment

            • #16

              #16

              Re : Suggestions: Chennai City Property Outlook

              Yes monsoon failure is another dampening factor for RE.

              Investing RE now is a foolish thing

              Comment

              • #17

                #17

                Re : Suggestions: Chennai City Property Outlook

                Originally posted by Natarajg007 View Post
                Hmm, suddenly the Contra bull has turned a bear!
                As for Yeskrish, in T.Nagar property prices going down can be something to dream about, not in reality.
                One point to note is India houses 17% of world population and only holds 2.5% of world land area. So even if Indian engineers earn 50% of US salary the price of RE in INdia will be so much more than in US or in many other parts of the world. This is something no RE bear ever seems to understand.
                Infact I would love property prices to crash to 2004 levels but beware our friends on this board wont just lose their jobs, they will actually have to take 2004 salaries and they know how small it was. Maybe even 2000 salaries which will mean that a 10year exp SW engineer can be got for 20K p.m. in the average case (not MNC case).
                So DJI, third leg and other stories by self proclaimed pundits wont let you decide anything.
                If you have the money and the need buy RE. If you want to speculate then that is your call today as also in 2005!
                If property prices always keep increasing, who will invest in Gold/Stocks/Bank Fixed Deposits etc. ???
                Is there any one who wants their money NOT to grow rapidly even when they are assured 0% risk of downside!!
                Higher returns are always tied to risks, there is nothing like only high returns and no risk.
                (Possible only in dreams or Moon.)

                Rent the property fetches is good indicator of what should be the price of anything.
                The difference between rent and cost of owning cannot be very wide, if its wide then
                people would just rent. Even if Salaries have gone up from year 2000, there still exists
                wide gap between rent and cost of owning.
                land-Population ratio also does not indicate or justify rise in property value we had in last few yrs.
                A lower ratio just means we go higer floors and not price.

                Price is always what the buyer can pay. Buying in current market will come with great risks.

                Comment

                • #18

                  #18

                  Re : Suggestions: Chennai City Property Outlook

                  Originally posted by venkit View Post
                  ]http://nhb.org.in/Residex/CHENNAIres.php[/url]
                  The best zones with posh localities have seen biggest points drop in the Residex.

                  Zone 7: egmore, chetpet drops from 100 to 76

                  Zone 10: adyar from 100 to 77

                  Comment

                  • #19

                    #19

                    Re : Suggestions: Chennai City Property Outlook

                    How useful can Residex be? Do they have data for atleast 10 years? Again do they have data street wise? In Chennai prices can swing between streets, one may be a slum the next a bungalow area. I think these indices are atbest good for a glance!

                    Comment

                    • #20

                      #20

                      Re : Suggestions: Chennai City Property Outlook

                      In another post this guy uses Residex when it suited him!

                      Originally posted by Natarajg007 View Post
                      How useful can Residex be? Do they have data for atleast 10 years? Again do they have data street wise? In Chennai prices can swing between streets, one may be a slum the next a bungalow area. I think these indices are atbest good for a glance!

                      There was another post where the Residex drop was small. He used that Residex data to support his thesis on how strong the market was!

                      And he calls others chemeleons!

                      cheers

                      Comment

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