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Source: Nanfang Daily Online Edition     time: 2022-07-07 21:12:43

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friendship international

  Housing sales grow 4.5 times in April-June period in top 8 cities

Housing sales
Image Source : FILE PHOTO

Representational image.

Highlights

  • Sales jumped over 4.5 times year-on-year in April-June across eight cities
  • Housing sales stood at 15,968 units in the April-June period last year
  • Biggest booster to housing demand has been the increased importance of owning a property

Housing sales jumped over 4.5 times year-on-year in April-June across eight cities to 74,330 units on lower base effect, while demand was up 5 per cent from the previous quarter, according to PropTiger data.

Housing sales stood at 15,968 units in the April-June period last year and 70,623 units in the January-March quarter of 2022.

The price of residential properties rose 5-9 per cent annually, driven by rise in input costs, inflationary pressures and premium attached with ready-to-move-in inventory. Pune and Chennai saw maximum appreciation at 9 per cent each.

In its latest 'Real Insight Residential' report, Australia's REA group-owned PropTiger.com, said the YoY (Year-on-Year) growth in April-June 2022 is multi-fold due the low base as demand in April-June 2021 was severely impacted owing to the second wave of the COVID pandemic.

On the sequential rise in sales, Vikas Wadhawan, Group CFO of REA India, said, "Even though the RBI increased the repo rate twice during the quarter, home loans remained largely affordable."

India Tv - Housing sales

Image Source : INDIA TV

Housing sales in April-June 2022.

The biggest booster to housing demand has been the increased importance of owning a property, he said.

This, he said, has been further backed by the consumer confidence in the overall economic scenario and impending income stability.

As per the data, housing sales in Ahmedabad rose sharply to 7,240 units in April-June 2022, from 1,280 units in the year-ago period.

Sales were up 30 per cent from 5,550 units in the January-March quarter this year.

Bengaluru saw sales of 8,350 units in April-June, as against 1,590 units in the year-ago period. Sales were up 9 per cent from 7,670 units in the previous quarter.

Housing sales in Chennai jumped to 3,220 units in April-June 2022, from 710 units in the corresponding period of the previous year. However, sales were down 2 per cent from 3,300 units in the January-March 2022.

Delhi-NCR market saw 60 per cent increase in sales to 4,520 units during April-June 2022, from 2,830 units in the year-ago period. But, sales fell 10 per cent from 5,010 units in the previous quarter.

The sales of residential properties jumped to 7,910 units in the April-June period. It was at 2,430 units a year ago. The demand was up 21 per cent compared to 6,560 units sold in January-March 2022.

In Kolkata, sales more than doubled to 3,220 units during April-June quarter, from 1,250 units in the corresponding period of the previous year. Sales were up 13 per cent from 2,860 units in the January-March quarter of 2022.

Housing sales in Mumbai jumped multi-fold to 26,150 units during April-June 2022, from only 3,380 units in the same period last year. Sales were higher by 12 per cent from 23,360 units in the previous quarter.

Pune saw sales of 13,720 units in April-June 2022, as against 2,500 units in the preceding year. Sales were up 16 per cent from 16,310 units in January-March 2022.

During April-June 2022, PropTiger said that 20 per cent of the units sold were ready-to-move-in, while remaining 80 per cent were under construction.

Majority (26 per cent) of the sales were concentrated in Rs 45-75 lakh price range. Residential demand is 80 per cent closer to the pre-pandemic levels of Q2 2019.

On the supply side, the launches of new homes jumped to 1,02,130 units during April-June from 21,840 units in the year-ago period. It rose 28 per cent from 79,530 units in the previous quarter.

PropTiger said that the current unsold stock across eight cities is at 7,63,650 units. It will take about 34 months (2.8 years) to clear these stocks at the current sales velocity of the top eight cities.

Kolkata has the lowest inventory overhang of 24 months, whereas, Delhi-NCR continues to have the highest inventory overhang of 65 months, the report said.

"We see developers returning to the market in full swing in the second quarter of the year, thus catapulting the new supply back to the 2015 levels.

"Looking at the overall encouraging trends, we anticipate the sustained demand momentum to increase strength to strength especially amid the upcoming festive season which will push the growth trajectory further in ensuing quarter," said Ankita Sood, Head of Research, Housing.com, PropTiger.com and Makaan.com.

REA India is a part of REA Group Ltd of Australia.

It is one of the leading full stack real estate technology firms in India and owns three realty portals Housing.com, Makaan.com and PropTiger.com.

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