IT’S BOOM TIME AGAIN FOR HOME SALES

Normal 0 MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} Q3 will be better than the second, say bankers andbuilders. It tookjust two hours for DLF, the country’s <a href= “ http://www.zameen-zaidad.com/dlf.aspx ”> largest property developer </a>,to sell all the 1,250 apartments in the second phase of its Capital Greensproject near the Moti Nagar area of Shivaji Marg (Najafgarh Road) in WestDelhi. The project was launched on September 23 and the prices were around 25per cent lower than the prevailing market rates. In Mumbai, Rustomjee, aprominent private <a href= http://www.zameen-zaidad.com > property developer </a>, got bookings for 44apartments in its Global City project in Virar, a distant suburb of Mumbai, inthe first two days of a property exhibition organized by the MaharashtraChamber of Housing Industry (MCHI) from October 1-4. Thedeveloper has already received bookings for 600 apartments in the Global City and another 200 apartments inRustomjee Urbania project in Thane, on Mumbai’s outskirts, in the last threemonths, all in the Rs 10 lakh to Rs 50 lakh category.  Another realty firm Nahar Group says it has sold800 <a href= “ http://www.zameen-zaidad.com/latest_news.aspx ”> apartments </a> in its Amrit Shakti project in Powai in the last five months. Naharexpects booking for another 15 apartments after MCHI exhibition.  After witnessing a revival of sorts in home salesin the first and second quarters, developers are hoping to cash in on thedemand for affordable homes in the third quarter too, due to a large pent-updemand and the general feeling that prices may not go down further.  “Buyers have realized that prices may not go downfurther and there is no point in waiting now,” says a senior State Bank of India executive. SBI’s stall at the property exhibitiongot over 500 enquiries every day during the four-day exhibition and the bankexpects a good conversion.  All bankers are also expecting the good run rate onhome loan disbursals to continue. ICICI Bank Managing Director Chanda Kochharexpects a surge in home loan disbursals in the third quarter. “The confidenceis coming back due to increased job security and the feeling that <a href= “ http://www.zameen-zaidad.com/property-price.aspx ”> realestate prices </a> have corrected enough,” she says. There is also ageneral consensus that interest rates have bottomed out, she says.  JS Augustine, director of marketing at EverestDevelopers, says there was a huge pent-up demand which is coming into themarket now. Buyers who were holding back are now buying. Developers who had pulledback a lot of projects earlier are also launching new projects given theimprovement in the market,’’ Augustine says.  The period from October 2008-March 2009 was thetoughest period for developers when property sales touched lowest levels since2004. Property prices had fallen over 40 per cent from their peak in 2007-08 asbuyers stayed away due to salary cuts and fears of job losses.  But successive interest rate cuts, stimuluspackages from the government and overall improvement in economic conditionschanged the scenario since April this year with the country’s biggestdevelopers, DLF and Unitech, selling over 6,500 units in the first quarter ofFY 2010.   “We expect better sales in Q3 and Q4 as well. Wehave got very good response in Delhi which gives a good value for developers like us,’’says Rajeev Talwar, group executive director of DLF. Even a Unitechspokesperson said the company expects to continue its growth momentum in thecoming quarters.  <a href= “ http://www.zameen-zaidad.com/home-loan-application-form.aspx ”> Home loan lenders </a> are naturally bullish. SBI istargeting a growth of 30 per cent in the current quarter against 21 per cent in2008-09. HDFC, the country’s largest home loan provider, saw disbursals rise 22per cent in first quarter and expects the trend to continue.  Normally, there is a lag of three to six monthsfrom the time of purchase and disbursal of loans by a bank or a housing financefirm.  Developers, which have increased prices by 10-15per cent in the last six months, say this is the best prices buyers canget.  “Prices have bottomed out. We do not see any reasonto cut prices further. Though prices will not go up sharply, they willcertainly go up slowly in the coming months,’’ says Parag Shah, generalmanager, sales, Nahar Group, which sells apartments in Rs 60 lakh-Rs 75 lakh inits Powai project.  Apart from launching premium housing projects inthe last few months, developers have also withdrawn freebies such as freeparking, waiver on stamp duty, and free holidays and soon after the spurt insales. “Last year there was a recession and sales were sluggish. That is whydevelopers needed to doll out freebies. Now products sell without this,” saysNahar’s Shah.  But that’s precisely why some analysts areconcerned. Pankaj Kapoor, chief executive of Liases Foras, a realty researchfirm, says “there is high demand only in the lower price bracket of Rs 10-20lakh. August and September sales have fallen by 20 to 25 per cent as developershave increased prices again. There is still lukewarm response for premiumproperties,’’ he says.  Prospective buyers like Govind Chitre, a retiredgovernment employee, agrees: “The moment developers see increase in the Sensex,they jack up the prices. They charge on the super built-up area, which isreally absurd. I feel there should be a strong regulatory authority to controlbuilders.’’   Courtesy:- BS dt:- 06-10-09  

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• IT’S BOOM TIME AGAIN FOR HOME SALES?

  It took just two hours for DLF, the country’s largest property developer, to sell all the 1,250 apartments in the second phase of its Capital Greens project near the Moti...

• IT’S BOOM TIME AGAIN FOR HOME SALES?

  It took just two hours for DLF, the country’s largest property developer, to sell all the 1,250 apartments in the second phase of its Capital Greens project near the Moti...

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