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Is There a Price Correction In The Reality Market?

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Is There a Price Correction In The Reality Market?

Last updated: June 26 2013
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  • Is There a Price Correction In The Reality Market?

    Looks like there is a price correction going on in many cities.. Chennai seems to be one of them (some areas)...

    reference:
    India Real Estate Forums :: Topic: Is there a price correction in the reality market (1/1)
  • #2

    #2

    Re : Is There a Price Correction In The Reality Market?

    Reality prices in chennai may dip but not sure when..

    A good article... Is NHB a government bank? How do they get the data?

    Originally posted by nexuschennai View Post
    Looks like there is a price correction going on in many cities.. Chennai seems to be one of them (some areas)...

    reference:
    India Real Estate Forums :: Topic: Is there a price correction in the reality market (1/1)

    Comment

    • #3

      #3

      Re : Is There a Price Correction In The Reality Market?

      If genuine buyers show some character by not falling to the praying eyes of greedy investors and start hard negotiations and walk-out of deals at any point, this corrections can turn the wave upside down in RE market. The key is genuine first time buyers and needy ones (especially the resident/end-use category) are the keys to the actual price at the ground levels....

      They are becoming smarter now a days and they are able to see the ground realities instead of seeing the discussion forums and making decisions. They go to the place and look at the infrastructure and see the ecosystem. They give no weight to the brand value or premium names etc...they have understood these all are history....

      For the finished projects, they do not mind paying little more premium....

      But pre-launches and 3D modeling techniques are not cutting any ice with local buyers.

      Comment

      • #4

        #4

        Re : Is There a Price Correction In The Reality Market?

        From a layman pov, I can see corrections and openness-to-negotiations among local builders, in good locations. A builder in velachery has reduced psft price upto 300 Rs for their vanilla apartment. Also Habitat shows few Ads with price reductions! Something i didnt notice 6 months back.

        Comment

        • #5

          #5

          Re : Is There a Price Correction In The Reality Market?

          Good find.
          On the plot side, one change im seeing the number of plots on market, availability is less, this is very classic of a slowing market, trader ads first fall ( broker vyabaris) only real sellers sell lands through 1500rs Ads,
          Last 4-8 weeks property plus is thin on residential land
          I can also see same proeprty being advt for over 2-3 times in an 8 week period, some indicators, i think careful watching and cherry picking or strong arming a needy seller could get good deals now
          on a side note, not every one can get the flat 300-500 rs discount deals that VP gets, he is a meticulous investor and does ground work research guided by some experts so your discount may not be my discount VP.
          just a compliment

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          • #6

            #6

            Re : Is There a Price Correction In The Reality Market?

            Originally posted by vettipayyan View Post
            From a layman pov, I can see corrections and openness-to-negotiations among local builders, in good locations. A builder in velachery has reduced psft price upto 300 Rs for their vanilla apartment. Also Habitat shows few Ads with price reductions! Something i didnt notice 6 months back.
            VP, Agree with builders finding difficult to find buyers in inflated market have seen builders like Malles in perumbakkam reduced rates and also open for Negotiation. Looks like not an ideal market to invest in new launches from builders with not so good execution record. We can see builders delay completion as we saw in 2008.

            There is a good slowdown in domestic market with people holding off to only necessities and reducing investment by leveraging. This can be seen evident in Auto sales slump, Chennai RE unsold inventory increase etc. Job market is also off with unannounced layoff citing performance and only 10% campus offering compared to previous two years. Most of the top companies have even shy'ed away with increments.

            Going by the way and high cost of living looks like we can see further correction.

            In 2008 the local market was still strong and posting decent GDP but current economic condition is the real test for domestic markets.

            Comment

            • #7

              #7

              Re : Is There a Price Correction In The Reality Market?

              Originally posted by SRajagopalan View Post
              on a side note, not every one can get the flat 300-500 rs discount deals that VP gets, he is a meticulous investor and does ground work research guided by some experts so your discount may not be my discount VP.
              just a compliment
              So Mr. Vettipayyan isn't vetti after all...

              Comment

              • #8

                #8

                Re : Is There a Price Correction In The Reality Market?

                Originally posted by srivat View Post
                Job market is also off with unannounced layoff citing performance and only 10% campus offering compared to previous two years. Most of the top companies have even shy'ed away with increments.
                Placements are down heavily this year for sure. I talked to a relative two days back. In his tier-II government college, TCS last year hired ~150 freshers, this year just ~50.


                During times of distress companies will mostly keep their usual hiring almost intact at tier-I colleges and reduce the hiring levels aggressively as they move down from tier-I to tier-II to tier-III ( mostly private) colleges. So most likely it should have been bloodbath as far as campus placements in private colleges this year is concerned.

                Also I heard that tier-I companies are also reducing their staff citing poor performance.

                Comment

                • #9

                  #9

                  Re : Is There a Price Correction In The Reality Market?

                  Originally posted by s.sath View Post
                  Placements are down heavily this year for sure. I talked to a relative two days back. In his tier-II government college, TCS last year hired ~150 freshers, this year just ~50.


                  During times of distress companies will mostly keep their usual hiring almost intact at tier-I colleges and reduce the hiring levels aggressively as they move down from tier-I to tier-II to tier-III ( mostly private) colleges. So most likely it should have been bloodbath as far as campus placements in private colleges this year is concerned.

                  Also I heard that tier-I companies are also reducing their staff citing poor performance.

                  Do not want to cite name here but yes have seen tier 1 companies reducing staff. As of now the intensity is not high.

                  Comment

                  • #10

                    #10

                    Re : Is There a Price Correction In The Reality Market?

                    Yes, there is muted layoff cycle in progress. This is very openly shared in the print media. We need to add 10-15 % to the layoff figure shown in the media.

                    Also freshers salaries have been tightened.

                    This year's increments have been peanuts ( i mean 0-3 %) for even higher ranked performers in top companies.

                    Hope these kind of news reaches the local builder for whom IT people still look like a suitcase full of 1000 Rs notes.

                    Builders, Karanthathellam podhum, ippo ukkanthu beram pesalam!

                    Comment

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