Chennai: Amid the coronavirus driven national lockdown, housing sales in Chennai, a key residential market in the south, continued with downwards streak in the fourth quarter (Q4) of the previous financial year (FY20).
Data available with PropTiger.com show that a total of 3,643 units were sold during the quarterin the three-month period between January and March 2020, falling 23 per cent year-on-year. The affordable housing segment contributed 45 per cent to overall sales, data show.
However, when compared to the same period in FY19, new supply showed only a 1 per cent annual fall in Q4FY20 in Chennai. A total of 5,912 units were launched in India’s automobile manufacturing hub during the quarter. Notably, 89 per cent of this stock was affordable homes i.e., units priced up to Rs 45 lakh.
In terms of unsold inventory though, there has not been much relief for developers in the city.
When compared to a year-ago period, inventory numbers fell only 4 per cent. As on 31 March, 2020, builders in Chennai had unsold stock consisting of 36,948 units. Half of this stock is affordable homes, data show.
At the current sales velocity, developers in Chennai would take an estimated 29 months to sell off this stock, also sometimes called as an ‘inventory overhang’; of 29 months. Notably, the inventory overhang for Chennai is higher than the national average of 27 months.
In the past one year, price growth of properties in Chennai has been flat, data show. Currently, average rate of residential property in Chennai is Rs 5,184 per square foot. In fact, when compared to other southern peers like Bengaluru and Hyderabad, Chennai real estate is the most affordable now.