Reply to 80482 post
Main Sab , i have created that post 80462.
My intention was just to understand the reason of price difference between already developed and long waiting developed Prism although their
location is super class. I am planning to invest in Prism and i am not against any thing until i am getting return out of it.
The reason of just 15 min away from Ferzopur road is not justified for such high price difference.
Lahore map/Transportation systems and many other things might change by the time of 15 years until Prism is developed.
Why not we enjoy (so called bad location) on ground and in hand Phase 7 now rather we wait for Phase 9 for decades.
Not to forget DHA 7 is adjacent to 6 and 8 and altogether DHA 6,7,8 will be a huge consolidated . well established and active society in next decade. While DHA 9 will be still under development and will take at least 25 years to reach the point of fully developed and active society. At that time 15min away from Kalma chowk really lose its meaning.
I dont have any investment in DHA 7 and trust me i am not intended to invest there , but somehow
prices seems attractive to me and i was curious to understand and foresee.
In property business, nothing is HARF E AKHIR... I remember DHA 9/10 file was bought by my uncle in 2007 in 53 Lax and in 2004/5 it was something like 86 Lax (Please correct me if i am wrong). And later a friend bought the same in 15 lax in 2010.
I am not discouraging any one and again i am trying to understand the things. I know ppl have invested from their pensions, for thir kids future for retirements etc and Same is the case with me. i have hard earned money and dont want to through anywhere without knowing and having understanding on things.
Khawaja Qasim® replied on Thursday, March 17, 2016 03:45 PM PST
@Asif
You mentioned some important points somewhat similar to those I mentioned several times in previous posts and replies. Now, there are mainly two types of people in property business i.e. investors and genuine buyers time being leave about short term investors or others. Investors buy land and sell at profit then buy somewhere else always looking for highest percentage gain. Genuine buyers buy land purely for constructing home may be immediate or few years later.
Broadly speaking the percentage gain in developing sector/phase/society is far more than developed sector/phase/society. One of the key reasons is the possession premium i.e. you can always built a home on possession plot and get rental yield. Whereas in non-possession plot the gain is only from the land therefore gain is usually higher and faster. Yes you can counter that, there are few exceptions everywhere and always there but just time being assume that.
Now possession plot (good location) in phase 7 S block is around 135-145. General perception is; as possession is handover, the juice is gone and price is peaked. Though I believe it’s undervalued (at least 15-20 lac). For developed plots, price rise steadily as construction activities pick up. So, I believe you will see at least 20 lac jump by the last quarter of this year and price will increase steadily 10-15% per year. But keep in mind the maturity price (on possession) in phase 7 was around 140. That too for one of the top blocks (S-block) and good location or clean plot.
Phase 9 is a developing phase (ideal for investors, and buyers intending to make home say after 10 years). As respected Mr. CMY, Mr. Ahmet, Mr. Mian, Mr. Opinion mentioned in their posts and replies, that location is better than phase 7, large number of parks, streets, ring road, huge commercial, better access point etc. So, one can say that decade ahead 9 will be better located/developed than 7. One thing I missed previously that is keep in mind the time factor. If phase 7 plot gain 70-90 lac in 4-5 years’ time the similar gain will happen in phase 9. Once developed and possession handover, Phase 9 (I believe) will priced comparable (little less or little more) to phase 7 (as there will be lot of houses/construction activities) in short term but in long term will be ahead than phase 7. Just like phase 8 now (without possession) is ahead than phase 7 (possession). The maturity price (on possession) of Prism will be more than that of phase 7. That’s what interests to investors. The development time is the most crucial part. As Mr. CMY mentioned that most of the land in Prism is possessed by DHA and that too is a level land. So, fast track development in 5 years’ time is challenging but not impossible. If you consider all these factors in mind, then current prices in Prism make sense. If somehow DHA manages to complete development in 5 years’ time then Prism holders will be the highest gainers. Though I believe, the possession will be in year 2025. Mr. ShahzadQamar believe possession will be in year 2023. Possession year is not that important factor for long term holders (as prices in both Phase 7 and 9 both will rise over the period of 6-7 years) but when the development take so long (if above 10 years) then there is a possibility that many investors loose the nerve to hold investment. So ups and downs can be expected (if development time is so long) otherwise no down is possible.
I hope I answered your curiosity. |