Monthly Watch: New launches Fall 68% in Chennai
PropTiger DataLabs figures show project launches across the major cities of the country have declined, owing to a lackluster activity in property markets. In Chennai, this decline is more prominent on a month-on-month basis.
At 68 per cent, new project launches in Chennai underwent a steep decline in the month of October over September. This is in sharp contrast with the 350 per cent increase in new launches in September. According to the PropTiger DataLabs report, this decline is attributed to unsold inventory that has swelled up in Chennai over months. Data show sales have failed to pick up despite the many efforts made by authorities and developers to lure buyers back to property markets.
On a month-on-month basis, home sales increased only one per cent in October while there has been an annual decline of 26 per cent in property transactions. This to a great extent explains the fall in new launches.
Property prices, on the other hand, saw no monthly increase; and, at two per cent, the annual price appreciation was only marginal. The report shows the highest price increase was seen in the high-end segment.
Developers who launched new projects in Chennai in October include Casa Grande, Radiance Realty, Ramky Wavoo, Smithila Foundations and Voora Property Developers. From affordable to luxury, these launches were scattered across segments. While the quoted price for Ramky Wavoo's Coniche at Egmore is Rs 13,500 per sq ft, Smithila Foundations is offering units at its Irish Garden Villa project at Tiruvallur for Rs 2,000 per sq ft.
Top-performing localities in Chennai in October were Navallur, Singaperumal Koli, Perumbakkam, Chromepet, Sholinganallur, contributing the highest to monthly home sales. Average prices for property in these localities fall between Rs 3,500-Rs 4,500 per sq ft.