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  Friday , July 07, 2017

  Chennai housing market out of demonetisation troubles    (also see in Jpeg)

  Publication: News Today , Agency: Bureau, Edition: Chennai, Page No: 5, Location: Top-Center, Height: 18, Width: 31, Size(sq.cms): 558
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Chennai housing market out of demonetisation troubles
□ 2016 saw low sales with note ban, says report □ North Chennai market expected to grow
NT Bureau
Chennai, July 6:
Amid dwindling markets, Chen­nai has seen a modest growth with the significant chunk coming from launches targeted at affordable housing, said the half yearly report of Knight Frank India. The report which was released yesterday, provided an analysis on the residential and office market performance across eight and six cities respectively, for the period of January-June 2017. RESIDENTIAL TAKEAWAYS: Sales and launches saw a modest recovery in the firts half of 2017 when compared to 2016 where launches hit an all time low of 41 per cent while sales was down by 11 per cent. A significant chunk of new launches took place below Rs 50 lakh, indicat­ing an emphasis on the affordable housing sector. The share of projects launched with an average ticket size under RS 50 lakh has expanded from 39 percent in H1 2016 to 69 per cent in H1 2017, while the share of those projects with average ticket sizes under Rs 75 lakh has grown from 52 per cent to 89 per cent during the
NRaja07072017 - 0001-1.jpg
Sequentially, Mumbai picks by close to 62 per cent, albeit lower by 36 per cent YOY. Chennai was the only market to record a marginal four per cent YOY rise in launches.
Government's thrust towards afford­able housing, widespread discounts on ready inventory and improved sentiments among buyers courtesy RERA drive sales volumes. NCR, Kolkata, Pune and Ahmedabad drive the revival of affordable housing projects with around 80 per cent of launches in these cities in the sub Rs 50 lakh segment. At 5,96,044 units, unsold inventory was at the lowest across the eight cities in H1 2017, albeit owing to the shrinking market size. NCR was the worst market with over over years of inventory.
Director (Chennai) Knight Frank India, Kanchana Krishnan, said, '2017 began on a positive note with sales and launches seeing a modest bounce back. A 14 per cent growth in sales during H1 2017 compared to the preceding period clearly indicates the transient impact of the demoneti­sation drive. Increasing commercial office space demand is a good
indicator for employment growth in any region and points at increasing incomes and a consequent require­ment of new housing units for the growing workforce.'
Speaking to News Today, Kan­chana Krishnan said, '2016 saw sales at a decadal low with demonetisation and its effects. The unsold inventory, which is the highest in the North Chennai market, at 8.6 quarters, is expected to grow along with Metro. But it will be a slow process. Residen­tial projects in the core city is more about evolving with the constrained space. The next two quarters will be slow as per our predictions and office space absorption will be less than last year with four million sq ft (down from 5.1 million sq ft in 2016). Chennai does not have an office space of one million sq ft if a MNC comes to set up shop here. Even if the city does have the space, it is unlikely to be present at a strategic position. We expect the current year to be the year of reflection. Buying, construction and delivery methods will change. More organised players will come into the scene.'
same period. DEVELOPING ZONE
Pallavaram, Mahindra World City, Siruseri, Pudupakkam, Navalur, Thalambur and Shollinganallur in south saw maximum developments, while southern and western Chennai together accounted for a massive 96 per cent of the residential products coming online during H1 2017.
Unsold inventory levels have plum­meted nearly 30 per cent over the last two years to 28,110 units. Residential price growth has been weakening in the market and prices are in line with this trend, growing by a modest one
YET TO BE OUT
The residential market had barely come out of the demonetisation shock when the need for RERA com­pliance put breaks on a large section of new projects. Thus, launches crashed 41 per cent, lowest in seven years and sales volume went down by 11 per cent YOY, lowest first-half sales in the past five years.
OTHER WORST HITS
Barring Chennai new projects dried up in all the eight cities. NCR and Ahmedabad were worst hit with launches plummeting by 73 per cent and 79 per cent respectively.
 
 
 

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Chennai housing market out of demonetisation troubles
Summary:
Amid dwindling markets, Chen­nai has seen a modest growth with the significant chunk coming from launches targeted at affordable housing, said the half yearly report of Knight Frank India. The report which was released yesterday, provided an analysis on the residential and office market performance...
Date: Friday , July 07, 2017
Publication: News Today, Agency: Bureau
Edition: Chennai, Page No: 5, Location: Top-Center, Size(sq.cms): 558