Housing Sales dip 20% q-o-q, New Launches Down 34% in Q3 2019 - ANAROCK

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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."

Q3 2019 New Launch Overview
MMR saw the launch of approx. 14,040 units - a decline of nearly 39% over Q2 2019 and 29% y-o-y. Over 64% new supply was added in the sub INR 80 lakhs budget segment. Bengaluru added approx. 9,370 units in Q3 2019, a quarterly decrease of 15% but a 31% increase over Q3 2018. Over 83% new supply was added in the sub INR 80 lakh price bracket. Pune added approx. 8,320 units in Q3 2019 against 10,700 units in Q2 2019 - a quarterly drop of 22%. The city saw new supply increase by 6% annually. NCR added approx. 5,790 units in Q3 2019 against 13,570 units in Q2 2019 - a massive decrease of 57%. However, NCR saw the maximum supply rise of 38% among the top cities on yearly basis. Approx. 64% of the new supply was in the affordable segment in Q3 2019. Hyderabad new launches dropped significantly by 51% over the previous quarter with approx. 2,050 units launched in Q3 2019. The y-o-y supply decline was also 51%. Chennai added approx. 2,530 units in Q3 2019 against 3,890 units in Q2 2019, a quarterly decrease of 35% and y-o-y fall of 48%. Kolkata added approx. 3,130 units in Q3 2019, an increase of 19% over Q2 2019's 2,640 units - but a decline of 22%y-o-y. Approx. 54% of the new supply was in the affordable segment. City-wise Supply (In Units) & percentage change Q-o-Q & Y-o-Y

Cities Name

Q3 2019
Q2 2019
% Change (Q2 Vs Q3 2019)
Q3 2018
% Change (Q3 2018 Vs Q3 2019)
NCR
5,790
13,570
-57%
4,200
38%
MMR
14,040
23,050
-39%
19,850
-29%
Bengaluru
9,370
11,010
-15%
7,170
31%
Pune
8,320
10,700
-22%
7,880
6%
Hyderabad
2,050
4,160
-51%
4,150
-51%
Chennai
2,530
3,890
-35%
4,850
-48%
Kolkata
3,130
2,640
19%
4,030
-22%
Total
45,230
69,020
-34%
52,130
-13%
Source: ANAROCK Research
Q3 2019 Overall Sales Overview
Hyderabad recorded a significant drop in sales in this quarter when compared to other top cities. City sales decreased by 26% - from 4,430 units in Q2 2019 to 3,280 units in Q3 2019, due to a big drop in new launch supply. Y-o-y, housing sales in city dropped by 32%. NCR also recorded a notable decrease in sales in Q3 2019. Sales decreased by 22% - from 12,640 units in Q2 2019 to approx. 9,830 units in Q3 2019. The city saw sales of 11,360 units in Q3 2018, amounting to a 13% annual decline. Both MMR and Bengaluru saw sales decrease by 20% each in Q3 2019 over the previous quarter, at approx. 17,200 units and 10,500 units respectively. Interestingly, on a yearly basis, Bengaluru saw the maximum sales decline of 35%, while MMR saw the least decline at 6%. Sales in Chennai and Kolkata in Q3 2019 decreased by 12% each over the previous quarter, clocking in at approx. 2,620 units and 3,120 units respectively. On y-o-y basis, Chennai saw sales decline by 11% and Kolkata saw a 27% fall. In Pune, approx. 8,550 units were sold in Q3 2019- a decline of 18% over Q2 2019 and an 8% decline y-o-y. City-wise Absorption (In Units) & percentage change Q-o-Q & Y-o-Y

Cities Name
Q3 2019
Q2 2019
% Change (Q2 Vs Q3 2019)
Q3 2018
% Change (Q3 2018 Vs Q3 2019)
NCR
9,830
12,640
-22%
11,360
-13%
MMR
17,180
21,360
-20%
18,180
-6%
Bengaluru
10,500
13,150
-20%
16,240
-35%
Pune
8,550
10,490
-18%
9,290
-8%
Hyderabad
3,280
4,430
-26%
4,850
-32%
Chennai
2,620
2,990
-12%
2,930
-11%
Kolkata
3,120
3,540
-12%
4,290
-27%
Total
55,080
68,600
-20%
67,140
-18%
Source: ANAROCK Research
Unsold Inventory - Q3 2019
Bengaluru witnessed the highest yearly reduction in unsold inventory by 17% - from 76,550 units in Q3 2018 to 63,540 units in Q3 2019. Hyderabad was second in shedding overall yearly unsold stock by 12% in Q3 2019. It now stands at 23,890 units - the lowest among the top 7 cities. Price Movement

Cities Name
Avg. Prices (INR/sq. ft.) Q3 2019
Avg. Prices (INR/sq. ft.) Q3 2018
%Change (Q3 2018 Vs Q3 2019)
NCR
4,565
4,550
1%
MMR
10,610
10,514
1%
Bengaluru
4,960
4,900
1%
Pune
5,494
5,465
0%
Hyderabad
4,187
4,130
1%
Chennai
4,935
4,935
0%
Kolkata
4,375
4,405
-1%
Source: ANAROCK Research:
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