Mumbai, 30 September 2019: Housing sales in Q3 2019 saw a quarterly decline of 20% across the top 7 cities - from 68,600 units in Q2 2019 to 55,080 units in Q3 2019. New launches fell by 34% over the same period – from 69,020 units in Q2 2019 to 45,230 units in Q3 2019. On a y-o-y basis, housing sales fell by 18% while new launches fell by 13% in Q3 2019 over the corresponding quarter in 2018.
The ongoing ‘shraadh’ period - seen as inauspicious in many parts of the country – coupled with the ban on the subvention schemes compounded the quarterly dip. Also, above normal and heavy rainfall impacted the number of site visits resulting in longer decision-making cycle.
In terms of sales, Hyderabad saw the maximum decline of 26% during the quarter with housing absorption falling from 4,430 units in Q2 2019 to 3,280 units in Q3 2019. Chennai and Kolkata saw the least sales decline at 12% each. As on Q3 2019, Chennai recorded overall sales of 2,620 units while Kolkata witnessed sales of 3,120 units.
MMR saw maximum sales in the quarter at 17,180 units, followed by Bengaluru with 10,500 units.
On the supply front, only Kolkata saw quarterly rise in new launches in Q3 2019, increasing by 19% from 2,640 units in Q2 2019 to 3,130 units in Q3 2019. On the contrary, NCR saw maximum quarterly decline of 57% - from 13,570 new units in Q2 2019 to 5,790 units in this quarter.
Among categories, affordable housing continued to dominate - accounting for a 41% share of overall new launches (45,230 units) in Q3 2019, followed by 36% in the mid-segment priced between INR 40-80 lakhs.
Anuj Puri, Chairman – ANAROCK Property Consultants says, “The decline in new supply and housing sales in this quarter was expected as both homebuyers and developers remained cautious and risk-averse. The slew of economy-boosting measures by the government to spur growth across sectors will very likely give the housing sector a leg-up in the festive season and the ensuing quarters.”
“As evidenced by the quick revival of the stock markets, these measures have already bolstered all-round sentiment. Housing is intensely sentiment-driven and we expect the numbers to improve significantly going forward. Most importantly for the sector, we are seeing a gradual revival of investor confidence. The recent corporate tax cut will spur investments from both domestic and foreign investors – the real need of the hour.”
Overall unsold stock as on Q3 2019 is approx. 6.56 lakh units across the top 7 cities, declining by a meagre 1% against the preceding quarter. However, developers were able to shed their overall unsold stock by at least 5% during the year which stood at 6.87 lakh units back in Q3 2018.
Q3 2019 New Launch Overview
The top 7 cities recorded new unit launches of around 45,230 units in Q3 2019 against 69,020 units in Q2 2019 and 52,130 units in Q3 2018.
The key cities contributing to Q3 2019's new unit launches included MMR (Mumbai Metropolitan Region), Pune, Bengaluru and NCR, which together accounted for 83% of the supply additions.
Source: ANAROCK Research
Q3 2019 Overall Sales Overview
Around 55,080 units were sold in Q3 2019 – a decline of 20% over Q2 2019, and a 18% y-o-y decline. NCR, MMR, Bengaluru and Pune together accounted for 84% of the sales in the quarter.
Source: ANAROCK Research
Unsold Inventory - Q3 2019
Overall unsold housing inventory decreased by a meagre 1% q-o-q - from 6.66 lakh units in Q2 2019 to 6.56 lakh units by Q3 2019. On a y-o-y basis, the top 7 cities saw unsold stock fall by 5% from 6.87 lakh units in Q3 2018.
Source: ANAROCK Research: ANAROCK Research
Residential property prices across the top cities remained stagnant in Q3 2019 when compared to the previous quarter. However, Pune and Kolkata saw prices decrease by 1% over the previous quarter. Yearly trends also indicate no major change except for NCR, MMR, Bengaluru and Hyderabad, which saw a minuscule 1% rise.
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.