Chennai: New home launches dipped 12 pct across top 9 cities in the fourth quarter of 2017 from 15,593 units to 13,666 units, according to a report released by PropEquity, research and analytics firm.
The lack of new launches was majorly attributed due to developers focussing on compliances with RERA and implementation of GST. Also, as a measure of the slowdown in the real estate prices stabilising, capital values including resale saw negligible correction if any.
Weighted average prices in the quarter remained at similar levels to '6,634 PSF from '6,639 PSF indicating bottoming out of correction. “2018 should hold as a stabilisation year for the sector since now both developers and buyers are more attuned to this changed regulatory scenario.
The implementation of RERA is encouraging developers to focus on the completion of existing projects. Consumer sentiment too, has greatly improved,” Mr. Samir Jasuja, founder and CEO at PropEquity said.
“Many buyers, sellers, banks and private equity investors are waiting for the budget announcement as they expect some major positive news from the govt. to boost real estate sector, he added.
Housing demand (absorption) across key cities dropped by just 9 pct to 32,546 units from 35,944 units due to fewer new projects in the market and end users showing signs of buying rightly priced projects. Nine cities were included for the study including Gurgaon, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai.
Minimal launch activity took place in Chennai during Q4 2017. The developers were more cautious about the launching of new projects as all the approvals has to be received and the project has to be registered in RERA website before launch.
Absorption witnessed a sizeable dip of 6% and 54% on Q-o-Q and Y-o-Y basis respectively. Weighted Average Price stood at INR 4,826/sft which indicates that the majority of the unsold units are in the mid segment.
Buyer’s interest was mostly towards properties that were nearing completion where areas like Perambur, Medawakkam and Pallikaranai witnessed some demand.
