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Housing sales boosted by 12 per cent in Q1 2019 over Q4 2018
2019-04-22
- New supply across top 7 cities up by 27 per cent QoQ ? from 55,600 units in Q4 2018 to 70,490 units this quarter; defies conventional election period trends
- Pune and MMR see maximum quarterly rise in both housing sales and new supply; absorption in Pune rose by 24 per cent, in MMR by 19 per cent
- Bengaluru frontrunner in shedding unsold stock; sees 9 per cent decline in Q1 2019 over previous quarter and a 27 per cent yearly fall
- New affordable housing supply sees over 47 per cent QoQ jump ? from 20,800 units in Q4 2018 to 30,750 units this quarter
- Annual housing sales rise 58 per cent, new launches up by 91 per cent across the top 7 cities
Defying previous election year trends when sales and new launches remained muted during this period, Q1 2019 saw both housing sales and new supply rise due to multiple Government sops in the first three months of 2019. Anarock Property Consultants' data shows that housing sales rose by 12 per cent and new residential supply by 27 per cent QoQ due to sops in the interim budget, GST rate cuts and lowering of home loan rates post RBI?s recent repo rate cut.
Of the total new supply, affordable housing saw the maximum share at 44 per cent. However, overall unsold inventory across the top cities saw a meagre 1 per cent declinein Q1 2019 over the previous quarter. Unsold housing stock stands at 6.65 lakh units as of Q1 2019.
Pune and MMR were the top performers with new housing supply increasing by 160 per cent and 62 per cent respectively. Housing sales in these two leading Western region cities saw a maximum increase in the quarter by 24 per cent and 19 per cent respectively.
?While we anticipated a negative spill-over impact of the NBFC crisis in the first quarter of 2019, housing sales and new supply assumed an upward trajectory," says Anuj Puri, Chairman, Anarock Property Consultants. "The sector is currently riding on a new wave of optimism following the triple benefits it received from the Government in the first three months of 2019. These sops have not only increased homebuyers? sentiments but will also boost the confidence of builders and long-term investors.?
?Despite a 1 per cent hike in stamp duty and registration charges in Maharashtra, MMR and Pune markets performed significantly well as far as new launches and housing sales are concerned," says Puri. "With project approvals in place, builders in these regions had been waiting for an opportune time to launch their projects, and the prevailing upbeat buyer sentiments was a major kickstart.?
Q1 2019 new launch overview
The top 7 cities recorded new unit launches of around 70,490 units in Q1 2019 (as opposed to 55,600 units in Q4 2018) ? a quarterly increase of 27 per cent
- Key cities contributing to Q1 2019 new unit launches included Mumbai Metropolitan Region (MMR), Pune, Bengaluru and NCR, together accounting for 87 per centof new supply
- Approx. 17,520 units were launched in Pune ? a whopping rise of over 160 per cent from Q4 2019. More than 45 per cent of new supply was added in the affordable segment
- MMR added approx. 26,850 units in Q1 2019 ? a significant quarterly increase of 62 per cent over the previous quarter. More than 70 per cent new supply was added in sub INR 80 lakh price bracket.
- Hyderabad added fresh supply of 4,850 units in Q1 2019 (compared to 3,940 units in Q4 2018), increasing by 23 per cent
- Bengaluru added 9,070 units in Q1 2019 ? a quarterly decrease of 22 per cent. Approx. 64 per cent new supply was added in sub INR 80 lakh price bracket.
- NCR new launches recorded a drop of 9 per cent from the previous quarter with approx. 8,030 units launched in Q1 2019
- Chennai added 3,170 units in Q1 2019 ? a decrease of 19 per cent over the previous quarter
- In Kolkata, new launches recorded a massive drop of 75 per cent from the previous quarter, with approx. 1,000 units launched in Q1 2019. The city saw the least new supply in the quarter among the top 7 cities.
