Buyers : “DLF Garden City Rate Cuts Not Enough, Considering Exit Offer”

February 25, 2009

ET now reports that despite the rate cut announced by DLF for its Garden City project in Semmanchery (near OMR, Chennai), the buyers are considering the exit offer from DLF.

dlf-omr-commentsOne of the buyer seems to have commented on the TOI article “Builder slashes apartment prices on OMR” (which reported the price cuts), says that “GC google group members core demands have not been met and also this reduction is not even close to bangalore and hyderabad DLF projects. Everybody had expected atleast 20% from the soft launch price. Disappointed and will exit from the project.” (read comment on ToI)

According to buyers, the 13-month inordinate delay and launch of the project without proper sanctions had driven many away. DLF’s recent mail to the buyers claims to have got the DTCP approvals and that it will start the process of signing Apartment Buyers’ agreements very soon. It also claims that it can complete the construction by April 2011, as was initially planned.

The article is available at : 
http://economictimes.indiatimes.com/News-by-Industry/DLFs-exit..

Earlier Blog Post : 
DLF reduces apartment prices in Garden City, OMR !! 

Also read :
Discussion Thread on DLF Garden City (including earlier news articles).

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Discover cleaner HOA (HomeOwners’ Association) collaboration.

February 24, 2009

Collaborating among HOA members is essential to discuss and take collective decisions, share details of income and expenditure, organize cultural and sports events, etc.,.  

Forming a Google Group or a Yahoo Group and communicating via EMails is one option available for HOA members to collaborate with each other for such purposes. But, that option has some limitations..

  • *All members* will receive *all messages*, which may or may not be important.
  •  If there are multiple blocks and there is going to be a topic which is specific to the block , even then all members will receive those emails.
  • There is no option to notify special interest groups (Gym Users) within the residential community.

To avoid such problems, it is better to have an private online forum, with discussion threads. In this approach, emails can be sent only when required, like to notify users when important announcements or discussion threads are started.

ResidentialCommunity.in, the Free HOA Management & Collaboration Software, which already has support for private online forum for HOA members, has now added support for notifying users about important announcements and discussions

Notify HOA Members

Notify HOA Members

The new feature includes the ability to notify just a specific block, if the discussion thread is of concern to that specific block alone, instead of spamming all members with notification emails. 

In each of the Announcement and Discussion pages, there will now be an option to notify users as shown in the image. 

Support will also be provided to notify special interest groups (like say a group of Chess players or Gym Users, etc.,.) within the residential community.

Discover cleaner HomeOwners’ Association (HOA) collaboration.
Discover ResidentialCommunity.in


DLF reduces apartment prices in Garden City, OMR !!

February 24, 2009

This is exciting news, which is going to have further repercussions in the real estate sector in Chennai (and of course India). 

The Times of India reports that..

Shaking up the city’s realty market, DLF on Monday announced a hefty price cut, ranging from Rs 3.6 lakh to Rs 12.6 lakh, for its residential project Gardencity – on the Old Mahabalipuram Road (OMR)

It would benefit existing as well as new customers, said K K Raman, executive vice president, DLF Chennai. The builder has introduced four price slabs, three for old customers and one for new entrants. Those who booked apartments during the soft-launch of the project, at Rs 2,800 per sq ft, would get a discount of Rs 300 per sq ft. The new price for those who booked at Rs 3,000 per sq ft last year is Rs 2,550 per sq ft. The maximum discount of 18.75 per cent Rs 600 per sq ft has been given to those who booked at Rs 3,200 per sq ft between August 2008 and February 2009. The price for new customers is Rs 2,650 per sq ft; the price will hold till May 31, 2009. 

While the minimum savings on the smallest apartment 1,200 sq ft at Rs 300 per sq ft works out to Rs 3.6 lakh, the maximum benefit for the largest apartment 2,100 sq ft at Rs 600 per sq ft is Rs 12.6 lakh. This is also the highest price cut announced for an ongoing project by any promoter in Chennai after the economic crisis set in. Significantly, the promoter has also decided not to collect any interest for delayed payment from existing customers. 

Speaking about reasons for taking such a drastic step, Raman said: “With unprecedented events in the world economy affecting the real estate sector here, bringing changes in input cost and interest rates, DLF went back to the drawing board and created further efficiencies. These benefits are being passed on to consumers.” 

DLF entered Chennai’s residential sector with a bang in January 2008 by announcing the biggest project of 3,493 apartments spread over 53.5 acres in Semmanchery, 2 km off OMR. Its soft-launch made headlines with close to 2,200 people booking flats in less than two weeks. All major empanelled realty consultants were in the race for clocking the maximum number of bookings for the project. Three months later, when the formal launch happened, several hundred customers opted out, perhaps anticipating the market downturn in the months to follow. The DLF sales team took several months to make up for those cancellations. Currently, the project has about 1,800 bookings in the first two phases. 

Ramesh Nair, MD, Jones Lang LaSalle, an international realty consultant, said: “DLF’s price revision could drive up demand for the project as it becomes more affordable for home buyers. It will also lead to most developers reducing their unit sizes and building specifications apart from reconsidering their pricing strategy.” 

At least half-a-dozen residential projects on OMR, in which private equity funds, mostly foreign, have been parked on a pre-agreed condition that sales will be effected at a minimum price of Rs 3,200 per sq ft, will be affected by the DLF move. Also, customers who had booked apartments in other ongoing projects on OMR at higher prices could apply pressure on their builders. In short, a price correction for properties on the much-hyped OMR is perhaps underway.

The article is at..

http://timesofindia.indiatimes.com/Chennai/Builder-slashes-apartment-prices-on-OMR/articleshow/4179669.cms

Apartment rates may indeed become more affordable !!

This also shows what the new gen collaboration tools can make happen. This reduction in prices in DLF Garden City seems to be due to negotiations between existing buyers and DLF and probably was prompted after more than 600 threatened  to pull out of the project, of which 100 people actually proceeded to do so. For more details visit this thread..

http://www.placetolive.in/Discussion/4023


Targeted marketing by Akshaya and Hallmark at FAIRPRO ’09

February 13, 2009

Akshaya seems to have a good marketing team which impressed with its timely placement of banner advertisements targeting those who were visiting the FAIRPRO ’09. 

In the road from Guindy to Nandambakkam Chennai Trade Centre, Akshaya has placed a sequence of “Do you know” infotisements which cannot be missed. Clicked the following one on my way to Nandambakkam..

p1010574_wm The text reads “Do you know that the UDS (Un-Divided Share) of all buyers should add up to 100% of the land extent ?”

As per wikipedia, “an infotisement is a print article that, on the surface, provides readers with useful news or information on a topic, but whose ultimate purpose is to promote or sell goods or services related to the article’s topic. Infotisements are developed by the advertiser. As a result, their content (particularly in terms of validity, objectivity, and truthfulness) is vulnerable to the ethics of the advertiser”

Akshaya even gives out a booklet with 25 such “Home Facts” (online version).

p1010575_wm Another player which targeted the visitors with its advertisement was Hallmark.

Hallmark did not have a stall at FAIRPRO ’09 (probably it did not meet the some eligibility criteria or may be, the stall rates were very high or may be the stalls were limited and got booked soon ?!  whatever !!). But, it was cheeky enough to park a mobile billboard (vehicle wrap advertising) outside the FAIRPRO ’09 entrance of the Chennai Trade Centre at Nandambakkam.

The photo was taken at about 11:30 am. The mobile billboard was not present in the evening. The advertisement promises “உங்கள் கனவு இல்லம்” (“Your Dream Home” in Tamil) at Rs. 9.99 Lakhs (Rs.9,99,000 ~= $20,500 approx.)

Visited almost all stalls at the fair today and plan to go back on Sunday. Will be working to launch www.placetolive.in tomorrow. If you do go to the property fair and find something interesting, do comment about it here.

Update : www.placetolive.in is now live !!


CREDAI’s FAIRPRO ’09 at Chennai Trade Centre, Nandambakkam

February 13, 2009
Looking for details on FAIRPRO 2011, Chennai  ? Check out..

FAIRPRO '09

The Confederation of Real Estate Developers’ Associations of India (CREDAI) is organizing a FAIRPRO ’09 at Chennai Trade Centre, Nandambakkam today, tomorrow and the day-after (13th, 14th and 15th February 2009).

Purported to be the largest property fair in Chennai, the exhibition promises projects which are pre-approved by home finance institutions like HDFC, SBI, Axis Bank and LIC Housing Finance. About 45 Builders will be showcasing their projects and would compete with each other to offer the best deals to the customers.

FAIRPRO ’08 reportedly had about 100,000 footfalls and 400 bookings made over three days. With recession and not so bright outlook in the IT sector, the builders will have a tougher time matching the previous record, which is good news for those who really want to buy their home and have sufficient savings. And to beat the slowdown, builders are coming up with a schemes like free modular kitchen, furniture sets, free registration, free car park and huge cash discounts.

I plan to visit the fair on all three days and upload details to a new website : http://www.placetolive.in (yet to launch). This website will be in lines of http://www.placetostay.in . If you would like to see any specific detail as part of the website, kindly let me know r.rajkumar [at] gmail [dot] com .

(Update : www.placetolive.in is now live)