Resale Market Witnessing Mixed Trends in Sales

While the primary market in the country is witnessing lower sales due to multiple factors such as economic slowdown, runaway inflation and rising costs, and elections, the secondary market in witnessing a mixed trend in sales. The resale market has done well in certain Tier I cities, while it is witnessing slow transactions in few other cities.

Sales trend

Certain markets such as Mumbai and Bengaluru witnessed moderate transactions in the secondary market, whereas Delhi NCR did significantly better. There are various reasons driving these sales.

Mumbai: Mumbai resale market has seen, more or less, moderate sales as compared to few other cities in the last two quarters. This is primarily because in certain areas such as Chembur and Maatunga, prices in the primary market have been reduced by several builders. Builders are also ready to offer discounts in the tune of 5-10 per cent. This suggests that primary market prices in a way impact the secondary market sales. Since builders are ready to offer discounts, buyers prefer to buy directly from them and not from the secondary market.

Delhi-NCR: The secondary market in the Delhi-NCR region has seen major sales over the last two quarters as compared to other metros. One of the major reasons is that secondary market prices have seen a correction of almost 15–25 per cent in most of the NCR including Gurgaon, Noida, Faridabad and Ghaziabad. The investors who bought properties earlier at less prices have now released their inventories in the market. On the other hand, builders are not ready to negotiate their prices. As a result, with reduced prices, sales in the secondary market have been going good.

Bangalore & Chennai: The primary market in both these southern cities continues to do fairly better than the secondary market. This is primarily because property prices in both these cities are far less than those in metros such as Delhi and Mumbai, where property has become almost unaffordable for many. Prices in both markets in Bangalore and Chennai remain more or less the same.
Having said that, it is advisable for end-users to consider the secondary market as there have been inadvertent delays in several under-construction properties across the country. Also before making a transaction, buyers need to consider in detail all the restrictions on transfer of property.

General trend is also seen in the country that people are taking more time to buy property and property seekers in the secondary market have increased significantly in most metros. The listing data at CommonFloor proves this fact.

CommonFloor data suggests increased seekers

CommonFloor data suggests that there has been significant increase in the number of property seekers in the secondary market in the last two quarters of all major metros. MMR has seen the maximum increase in property seekers, followed by NCR, Chennai and Bangalore.

CommonFloor listing data also suggests that the number of properties in the secondary market listings have also seen a significant increase in the last two quarters. The number of properties listed in the secondary market have increased the maximum in NCR followed by MMR, Chennai and Bangalore.

One can see that the trends in the resale market in the country are currently dependent on the price corrections as well as price trends in the primary as well as resale markets. Where there have been corrections in the primary market, sales in the secondary market have been either low or moderate. Where there have been more supply in the secondary market and no price corrections in the primary market.