Chennai home resale market growing: HDFC

With rising property prices and new apartments in the affordable range hard to comeby, the resale market is turning hot in Chennai. HDFC, which organised a two-day event in Chennai recently, expects demand in the resale segment to grow, reports Business Line. Mathew Joseph, senior GM and regional business head, Tamil Nadu and Andhra, HDFC, said around 400-450 people visited the programme organised at its branches in the city. He said this was for the first time HDFC had sponsored such an event. The event's objective was to assist assisting and counsel customers looking to buy resale homes. Asked whether there was a spike in demand for re-sale properties, Mathew Joseph said there was an increase in demand year on year for resale properties. At present, approximately 10 per cent of the loans advanced by HDFC in Chennai were for purchase of re-sale properties. He expected this trend to grow. According to him, it is not just the price advantage that is driving the resale market. That the properties are ready-to-move-in is another attraction. But a more important factor that drives the growth of re-sale property market is they are available at locations where buyers want to live because of proximity to educational institutions, health care facilities, and so on. HDFC funds a maximum of 80 per cent of the cost of a resale property and for a maximum term of 20 years, subject to the borrowers' individual creditworthiness. The housing finance company, through its subsidiaries, HDFC Red and HDFC Realty, provides information on homes available for sale across the country, the report added. source:http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20148&cat_id=3