Property price falls attract buyers

In the past few months most cities across India have seen falls of on average 25% on the asking prices of new property stock.
L J Hooker Project Marketing has seen clients in all cities dropping prices by these margins and says that the strategy is working.
“We are seeing renewed interest in Projects and bookings starting to flow again as buyers get comfortable with the current pricing structures” says CEO, Alexander Moore.
“Sellers who do not meet the markets price expectations do so at their peril” he says.
Mr Moore confirmed that a number of developers were planning imminent releases of projects with reasonable pre launch enquiry.
Bangalore’s largest landowner, The Century Group has recently completed their model display villa just beyond the Hebal flyover for their ambitious WinterSun project at Yelahanka, and Mr Moore confirms that the launch will be done over the next few weeks.
“We have a commitment to go to or VIP data base for a pre launch then we will open the project to the public at an official launch as soon as the pre launch bookings are completed”
Other projects slated for release that were confirmed by Mr Moore included the huge Golf Village at Mysore, where villa’s are expected to be released from only 40L or so confirming that there really are some great buys coming into the market.
These villas are located on a championship 18 hole golf course with none other than India’s No 1 golfer, Jeev Milka Singh as the project brand ambassador and spokesman.
Construction of the course has already begun.

A slow but steady recovery in property sector…...

The property market is seeing a slow but relatively steady recovery in the first quarter of 2009 with enquiry levels growing and transaction numbers starting again.
The market has moved from virtually zero transactions in the later part of 2008 to a point where there is now cautious optimism among developers.
Why the change ?
First and foremost it’s market sentiment, people seem to be happy that the deals now on offer represent good value, and more importantly they don’t believe prices will fall further.
Added to this is the fact that interest rates have come down and EMI’s are therefore much more affordable.
Given the combined drop in prices and drop in interest rates, buyers are now some 30% or more better off than they were a year ago.
Recent numbers from the RBI show that wholesale inflation rate is down to the 2002 levels of only 3.03% (down from 5.69% at this time last year) Retail rates are expected to follow the downward trend as the year progresses.
All this has led to the central bank aggressively cutting rates with 5 cuts since October 2008.
It is considered unlikely that there will be any further cuts prior to the next financial year.
Borrowers can now lock in rates as low as 10% (IDBI) so property is again looking a tempting option.
Buyers are moving strongly back into the sub 30 lakh market where it is mainly driven by owner occupiers who in the main are working couples and families.The second quarter of 2009 should continue this trend.