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DHA phase 7 is now selling at or under DHA 9-10 ????????,

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   CMY
Wednesday, January 7, 2009 04:29 AM 
Reply: >
Hello friends I want to keep quite and just provide you the basic info like rates , available properties maps pictures etc because I get into too much trouble from buyers sellers and dealers and even DHA and Bahria after posting my HONEST opinion here. If one group don't like my opinion they all blame me for rise or fall in prices. But today I will ask you a question and you should answer it :)



Today I am scratching my completely bald head for last few hours to find out why some sellers are willing to sell their DHA 7 plots at near or under DHA 9-10 prices.

100s of plots in DHA 7 are now selling at 25 to 30 lacs. This price is with development charges included in them. DHA 7 R and S could have possession as soon as Mar 2009. DHA 7 Q T U P could have possession as soon as Dec 2009. Rest of DHA 7 is Due by Dec 2010 at max. Last installment of development charges in DHA 7 is due June 30 2009. So one can reasonably assume all DHA 7 should be handed over in max one year after development charges are paid 100%.


On other hand a DHA 9-10 file is selling at 15.10 lacs today. One could see after 2 3 years development charges will be about 10 to 12 lacs as they are already 9 lacs today. So when we add
10 lacs + 15.10 lacs = 25.10
12 lacs + 15.10 lacs = 27.10

Now with DHA 9-10 a plot could be delivered only after minimum 5 years at the earliest.

Why would some one sell a plot in DHA 7 at same or lower price than DHA 9-10 ????????????


Why would one buy a DHA 9-10 file at higher price than DHA 7 plot. Very difficult for me to understand.


Either DHA 7 plots will see immediate price rise or DHA 9-10 price will drop further from current price?

What is your HONEST opinion :)
khalid montreal canada replied on Wednesday, January 7, 2009 06:09 AM 

because dha 9-10 is better location then dha7 after 5 to 7 year or after balloting dha 9-10 the price go very high dha 9-10 also dha 9-10 location is very good close to feroz pur road close to dha 2 3 4 5 ext and also close to ring road and brodway and air port
after 5 year maybe dha7 price not go up up because dha7 look like back yard of dha all phase
even after balloting dha 8 and parkview the dha 7 look like beautefull back yeard of all dha phase
Farid replied on Wednesday, January 7, 2009 07:31 AM 

Question is where are those deals, its all speculative talk.. In DHA when you go to buy, there are no confirmed deals because plot travels in 20 hands before it reaches real seller and when you are selling, there are no buyers... its a huge mess and a frustrating excercise. After 60 years we even could not regulate one Important housing market
arsu replied on Wednesday, January 7, 2009 07:48 AM 

CMY - i believe, it is that category of people who have completely lost their hopes in DHA's commitments, realestate itself and the future of this country. They think that their money is badly stuck and eventually going to sink as each passing day is bringing the worth of their property down. Honestly speaking, i also find myself standing on the side of such people.
The comparison you did only appeals to those who see drastic improvement in the realestate in coming 2 to 3 years hence would love to stay rather than quit.
Sarwar replied on Wednesday, January 7, 2009 08:46 AM 

I am pretty sure someone misused CMY name. These comments are not written by CMY.
Habib replied on Wednesday, January 7, 2009 09:27 AM 

Yes there is no logic, may be people are afraid of Pak India tesion, This negative sentiment along with psychological state of investors due to repeated loss has pused the people to sell DHA 7 Plots at vey low rates. I am not delaing as a dealer but I know 3 deals, out those 2 were those plots which were sold by DHA in 9 Lac [I mean army or allotted plots], Only CMY can tell how many such plots are still in Market. Price can still fall untill such supply will be exhaused. But there is no comparson between DHA 7 and 9,10, In time scale as Phase 9,10 will be minimum 8 to 10 years late than phase 7.
I have not invested myself in DHA 7 but in my opinion to sell a good plot in DHA 7 at 25,26 lac is mistake, the reason is base price in Lahore populated areas is not falling if that price is 90 in DHA and 60 In Johar Town then to get a plot at 1/2 to 1/3 price is very good. I shall say DHA7 is underprice in comparison. tht is another question if it can go further down.
Jameel replied on Wednesday, January 7, 2009 01:13 PM 

If you scroll my previous posts same fact I have mentioned even when DHA 9,10 File was 17 Lac and DHA 7 plots were 2,3 Lac expensive than that. Keeping in mind 7 lac development charges of 10 Merla plots just Balloted 6 Months Back if DHA Ballots DHA 8 in couple of Months the development charges should be 12 lac, As yet there are no signs so even DHA 8 will have development Charges about 14 to 15 lac. Now if you come to 9,10 and say it is Balloted in 5 years its development charges will be about 19 to 20 Lac unless they cmpromise development standard[i am just increasing 10% Compounded per year].
DHA 9,10 is not falling than 15 Lac reason is seller is not ready to sell below this, But people are still not buying it and there is very thin trading of 9,10 Files. Becasue it is obvious that it is sheer loss and full of uncertanities of time of development and cost of development.
Oversees Pakistani replied on Wednesday, January 7, 2009 02:34 PM 

Provided if someone is not speculating and creating a selling rush for cherry picking, the only reason I am seeing is lack of confidence in terms of the future of Pakistan's very existance. However, people should realize that the beauty about realestate is that it is tangible and will stay even if Pakistan is further splitted (God forbid). Another thing which expatriate Pakistanis forget is that in case if that thing of splitting of Pakistan happens, Lahore property will benefit as there will be mass migration to Lahore from other parts of Pakistan.
May Allah forgive me if I am thinking of unwanted extremes. Actually, we oversees Pakistanis are now gone almost Paranoid when we hear of such covert joint plans of CIA, Mosad and BI duly supported by ISI and currupt politicians.
Sajad Rashid replied on Wednesday, January 7, 2009 02:44 PM 

Dear CMY

You have clearly outlined the issue and given two possible outcomes that could arise either.

(1) DHA phase 7 plots will increase in price
(2) DHA phase 9/10 file price will decrease

Could you know please state what you think will happen according to yourself and please be honest and do not worry about peoples feelings this site is known for its honesty and sincerity.
Salam replied on Wednesday, January 7, 2009 04:26 PM 

I think, main reason is the economic future of Pakistan.
I see a similar future of Pakistan as was in 90's when govt. did not had enough money to pay even the petty salaries of govt. employees.
White elephants like PIA and Steel mills are there to serve political interests otherwise their is no need to inject billions on annual basis, while economy is crippled.
Industry is closing down and so does the revenue of the govt. will drop and next govt. will have no choice but to go for IMF loan again.
I hope we all know the interest rates on fresh loan is around 20%!
Wonder why our popular leaders did not lend personally on such high interest rates! some thing fishy!
People wanted a change, they wanted new govt. to make Pakistan richer than before and faster than ever but all bets failed miserably.

Can any one tell us how can we be able ot fill our forex reserves once agin? how can we be able to build the confidence of investor?

Our popular leaders are not interested to invest in Pakistan than it is natural for the die hard supporters (people of Pakistan) not to follow their super leaders.

Only buyers can help this property crunch and I don't see a reason from where the money will come to invest in real estates specially in the presence of towering interest rates and volatile geo-political situation.
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