Apartment prices are set to crash in Blore after demonitisation

[propbda]

IT's very good move by Central Govt. The unrealistic prices of apartments will be history soon, now it will be end user driver market.. The one who needs home is looking for 20 to 30 Lakhs worth apartment. So Prices will come down due to no black money in market..

No buyers for 60 Lakhs to 1 CR worth apartment, as only corrupt people use to buy it for investment and denying the right for end user to buy it..

Dont buy any apartment immediately wait for complete crash in next 4 months, dont pay black money to builder. Prohibit the builder who ask black money and lodge police complaint and complaint in incometax department for which ever builder asking for black money..

[msn1270]

Its too early to conclude anything. This can be a temporary phenomena, due to currency crunch. Once the supply of the new Currency stabilizes, the same corrupt practice may regain the momentum, as its already adopted by both the buyers and sellers.

CREDAI association is very optimistic and justifying, all its members are doing transactions only through Cheque & DD. So they don't anticipate any downward trend in the future also. Whereas many of the Developers/builders are even now accepting cash component in the old denominations. So many black money holders are passing their legacy by investing in the real estate market by joining hands with the builders/Developers till the end of this month.

In the recent weeks, I have seen few classified ads in Deccan Classifieds & TOI.,,etc, where even the individual sellers are specifically mentioning, they are ready to accept in old currency/denominations also. As usual builders and developers trying their best to create positive and optimistic wave in the market.

We need to wait for at least another 4 months to look at the revenue collection numbers to be released by the from the state Revenue department in the month of April 2017 collected by way of stamp and registration charges. Considering the previous years trend, they had set a target of around Rs. 10,000 crores for the financial year 2016-17. Lets wait & watch how much they'll achieve in their Goal, which guide the direction where the real estate market is heading.

[sujiths]

IT's very good move by Central Govt.

That's a separate debate altogether.

The unrealistic prices of apartments will be history soon

I wish so too, but don't see any clear reason why this will happen. Sellers will hold on to their property for a few more months, by which time the supply of new notes will stabilize and then it will be back to the old game of asking for a big percentage of the property price to be paid in cash. There will be a price crash only if demand comes down to near zero levels and stays there for several months/years, which does not seem feasible. Besides, people who have already bought properties and banks will strongly resist such a move due to the erosion in the value of their holdings if the price crashes.

No buyers for 60 Lakhs to 1 CR worth apartment

Yes, the section of people who are willing to pay so much, have been milked by the sellers and the market for such properties has been very subdued in the recent past. But still sellers are quoting such rates hoping to find someone who will buy.

Prohibit the builder who ask black money and lodge police complaint and complaint in incometax department for which ever builder asking for black money..

All this could have been done in the past also, but most people didn't do it. Don't see why people's behavior will change now

[msn1270]

As per the State Revenue Department Disclosure, there is only 20% drop in the real estate Registration activity between Nov & Dec 2016.
Average Monthly Revenue collection from Stamp & Registration activity is around Rs. 750 Crores from the real estate activities. So far in
the last two months, its around Rs. 600 Crores. So drop of 20% can be a small dip (a temporary phenomena) due to cash crunch. State
Revenue dept is expecting a drop of only Rs. 1,000 crores by end of March 2017 from their target of Rs. 9,100 Crores. We need to wait
and watch for next three months to understand the real trend.

[msn1270]

Here is a latest update related to Stamp & Revenue collection figures.
As mentioned, one of the reason for the short fall of revenue is due to guidance value revision happened in April 2016. Due to which, many buyers completed their registration well in March 2016 to save the registration cost. Obviously this reduced the number of transactions in the first Quarter of 2016(April to June). By looking at this numbers, overall reduction of 20% doesn't indicate any kind of market crash at least in the near future. We need to monitor at least next 2 quarters to know the trend line.

[sam_m400]

even though cash supply stabilizes government will track high value transactions .. Since most of the money in bank if anybody withdraw 20 lakhs in white plus another 30 lakh cash in hand can be caught because they will track why this 20 lakh is flowing ... // I read in news that IT dept has send notices to people who bought high value car like Audi even in 2014 to show there source of funds.. So buyers will always look to buy in all white not be caught latter asking for source which may put sellers in spot affecting may real estate with less takers... This is My guess

[msn1270]

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