Good morning, our love, or should we say greed for property is so strong sometimes, that even 500 fully grown trees do not stand a chance against it.
Here's proof:
A Chandigarh-based real estate promoter seems to have illegally carved out farmhouse sites in a forest area near Nayagaon, after allegedly uprooting 500 trees in the process.
The project, offering farmhouses ranging from 0.5 acre to 2.5 acres, is located near Masol village along the Nayagaon-Tandi-Masol road.
Ironically, when the press got in touch with the promoter - Lt Col Sandhu (retd.), he promptly claimed he had “nothing to do with the land in question and didn’t own even an inch of it”.
🚴♀️🧃🥝
MHADA At The Helm Of PMAY Projects Now
The MHADA (Maharashtra Housing and Area Development Authority) will now be handling PMAY projects and related affairs.
The reasons
A desire to expedite these housing projects while ensuring proper support, per MHADA. It wants to ensure higher transparency in the space. The State Housing Ministry has already empowered it for sanctioning PMAY funds and projects alike.
The winds of change
1️⃣ MHADA can rap developers for violations or delays.
2️⃣ More PMAY manpower and new technical team for updates.
3️⃣ MHADA still requires the State Housing Department’s prior permission for sanctioning permissions/fund disbursal.
4️⃣ What will change on the ground is faster project execution and higher transparency.
Will the end-user benefit?
Time will tell. For now, the tidings look positive, especially for innumerable aspiring homebuyers eyeing these projects.
Realty Check
Not all real estate appreciates. This is a neighbourhood in Detroit, USA, photographed 10 years apart (2009-2019).
📌 Brought to our notice by Levi Benkert via this tweet.
PE Interest Stays Strong In Warehousing
More private equity/pension funds are buying into the warehousing sector. Though warehousing now yields 9-10%, PE interest has remained strong.
Key developments
🔼 Funds are aggressively picking up assets for future REIT listings.
🔼 They expect warehousing growth in 3-5 years.
🔼 Demand growth to 40 million sq. ft. for warehousing and industrial spaces in India’s top-8 cities.
Why renewed interest?
📎 More warehousing capacity near big cities.
📎 In-city warehousing and dark store growth prospects.
📎 E-commerce logistics growth.
📎 Manufacturing revivals in multiple locations.
🛒 In fact, Greenbase Industrial & Logistics Park recently confirmed a 2 lakh sq. ft. lease deal for global player Jost India.
Hey. Isn’t that a grand piano we just heard?
Singapore's Hot Housing Market Is Making Authorities Sweat
Home prices have been on fire across global markets and the latest bugbear seems to be Singapore. Given Singapore’s limited land availability, its housing prices have become too hot to handle, per this recent report.
Singapore’s HDB Model
Singapore already has its Urban Redevelopment Authority for building master zoning, urban blueprints and approvals for private residential projects - usually consisting of condominiums and apartments by developers that are retailed at sky-high rates.
In addition, another authority was founded in 1960 for ensuring public housing supply, namely the HDB.
While HDB flats dot several areas of Singapore (80% of citizens reportedly live in these apartments) and 1.2 million have come up since 1960, there’s still no stopping the runaway home price.
🔖 Fyi, HDB's not-for-profit apartments come with 99-year leases, but at a huge cost to the SG exchequer. To put it into context, the board reported a financial loss of SG$2.7 billion in FY20 alone.
What’s happening now?
In spite of HDB’s undeniable role in meeting housing demand, home prices are still going up sharply. Reports highlight the Resale Price Index going up by 12.7% for HDB flats last year. Similar price increases were also reported for private residences.
While that might not seem like a BFD, it's fanning fears of eventually-unaffordable housing and a bubble waiting to burst.
What could happen?
Yet, experts anticipate higher construction activity to ease up supply constraints.
The Government is also implementing cooling measures like stringent lending regulations and high stamp duties. These could ultimately keep the market on track.
---------------
Heard on social media;
Guess what will correct faster than private market valuations? Salaries.
In India, salaries have gotten way way way out of whack, getting increasingly disconnected from value, because hiring and retention had become a bidding game.
With no bidding possible, salaries will correct faster than you can imagine.
Thankfully, newsletter writers are so underpaid, no sleepless nights for us.
Have a good day ahead. 💚
☕ The Crew@Ginger Chai