Home sales up only 6% in June quarter, unsold residential stock further rises: report
Bengaluru: Home sales rose only 6% in the June quarter compared to the preceding three months, Liases Foras Real Estate Rating and Research Pvt. Ltd said, with maximum sales recorded in the Mumbai Metropolitan Region (MMR).
Among 64,881 residential units sold in the top seven property markets, the largest chunk of 15,824 units—over 24%—was sold in MMR. Chennai sold just 3,111 units, the only city to witness a decline (of 3%) in sales on a quarter-on-quarter basis. Bengaluru, which sold around 7,300 units, saw the maximum rise in sales, at 16%.
Unsold residential stock continues to remain an area of concern for most developers across cities. According to the report, there were around 951,010 unsold units at the end of the June quarter, 3% more than a year ago. Chennai saw a 17% rise in unsold inventory over the last one year.
Property prices in the eight cities—MMR, National Capital Region, Bengaluru, Chennai, Pune, Ahmedabad, Hyderabad and Kolkata —remained almost stagnant with a marginal 1% and 2% rise on a yearly and sequential basis, respectively.
Homes priced at Rs2 crore and above and low-cost units in the sub-Rs25 lakh segments saw maximum sales traction, at 13% and 8% on a sequential basis. Sales in the cost bracket of Rs50 lakh-1 crore increased marginally by 1% on a Q-o-Q basis, which is the lowest
Sales have picked up in almost all cities showing a movement in the residential segment. While the sales growth was only 6% in the June quarter, along with the 21% growth in the March quarter, it is a positive sign for the sector following demonetisation, which has also witnessed RERA and GST. However, it will take longer for stronger recovery to happen ,” said Pankaj Kapoor, managing director, Liases Foras.
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