Customers who drove a hard bargain got reductions of up to 10% in apartment prices, in the form of cash discounts or freebies, says Knight Frank's latest report on the sector.
Chennai's residential market hit a new low in the second half of the financial year as it recorded 33 per cent fall, the lowest in the decade, according to global property consultant Knight Frank.
New project unveiling in H2 2017 plummeted by 23% YoY and as developers' focus shifted towards completing existing projects.
With trickling sales and sharp drop in launches, he said the unsold inventories in NCR have come down, still it would take more than four years to clear the unsold stocks.
The good news is that the weighted average residential prices in the city contracted by 5% in 2017 y-o-y.
Factors such as piling up of inventory, lack of consumer confidence due to litigation and infrastructure delays, and policy initiatives like RERA and GST have adversely affected market dynamics, resulting in a break of momentum for new project launches in the region.
Speaking about the findings, director, Kanchana Krishnan, said, "After showing signs of a promising recovery during H1 2017, Chennai residential market once again hit new lows in terms of sales and supply numbers during H2 2017. This includes bouquet of incentives such as waivers on stamp duty, floor rise and assured rental schemes", he added.
Das said that "in terms of sales, the Mumbai market recorded 19% uptick in H2 2017 over the demonetisation-hit same period previous year, however overall sales volumes reflect a declining pattern".
Residential sales, however, rose 19% year on year in the second half of 2017. But from the sales peak of 2011 when 3,68,568 units were sold, this is a step decline of 62 per cent in 2017 at 2,28,072 units.
However, the city that used to witness half yearly launches of above 5,000 units saw just 2,571 new units in the first half of 2017 and a dismal 940 units launched in the second half, the lowest ever.
The report also said that since West Bengal was yet to adopt RERA (Real Estate Regulatory Authority) and establish the Housing Industry Regulatory Authority (HIRA), the developers were adopting a wait and watch approach.
It presents a comprehensive analysis of the residential and office market performance of Hyderabad for the period July December 2017, a company release said. It is also for the first time that prices have dropped by 7 per cent with an effective price difference added with discounts which add another 12 to 13 per cent.
Housing sales and launches stood at 40,005 units and 26,734 units, respectively.