Real estate stocks do well December 30, 2008
Posted by dhirendra1972 in Choppy Trades, Interest Rate, Profit, Rate Cuts, Realty Gainer, Realty Stocks, Shareholders, Sharp Rise.Tags: Gain, Real Estate, Shares, Stocks, Trades
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Good morning friends. I’m sure that after reading this article all shareholders will be happy. This is the much awaiting fact that shareholders want to know. There should be always a hope.
Shares of real estate companies were up, but gave back a portion of early gains, as investors booked profits in choppy trades. Analysts said the spurts of strength in realty stocks in recent days can be attributed to hopes of further cuts in interest rates.
“Most of the strength in selective stocks is due to hopes of interest rates going down. Since last few days, we have witnessed a series of rate cuts by banks due to pressure from the government. At this point of time, concern about lending to real estate sector is still weighing on majority of institutional investors,” says a real estate analyst.
At 12:30 PM, BSE Realty was at 2,237.35 points, up 1.4% from the previous close, but off the day’s high of 2,291.21.HDIL, Indiabulls, Unitech and Parsvanath, which were up over 2%, were leading the pack of realty gainers.
Investors are hoping that the cut in interest rates would spur demand for property, but analysts said that is not enough. It is believed that realty players should cut prices significantly to revive demand from prospective clients, which will also ease the burden of these companies.
Expectations of a sustained strength in property prices had led to builders buying lands at exorbitant prices through borrowed money. But, with sales drying up following the sharp rise in interest rates, these highly-leveraged companies are under great deal of pressure.
ref: theeconomictimes
Realty stocks in demand on SBI, HDFC Bank rate cuts December 22, 2008
Posted by dhirendra1972 in Cut Rate, Deposit Rate, Interest Rate, Lending Rates, Realty Stocks, Sector Banks.Tags: Banks, Interest, Loans, Rates, Real Estate, Stocks
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Realty stocks resumed their northward journey on Monday after interest rate cuts by the country’s largest banks over the weekend raising hopes that demand for home loans from customers will rise.
SBI, on Saturday, announced cuts in prime lending rates by 0.75 percentage point and deposit rates by upto one percentage point effective January 1, 2009. After the rate cuts, SBI home loans of up to Rs 30 lakh, for tenures between 15 and 25 years, will be available at 9.5%, loans of Rs 30 lakh to Rs 75 lakh at 10.75% and those above Rs 75 lakh at 11%.
Interestingly, for 5-year home loans up to Rs 30 lakh the rate will come down to 9%, which would be lower than even the concessional rate of 9.25% offered by public sector banks.
The rate cuts announced by SBI are bound to lead to similar cuts by others in the home loan business, which is good news not just for prospective home buyers, but also the beleaguered real estate sector.
Meanwhile, HDFC Bank on Friday reduced its home loan lending rates by 0.5 percent or 50 bps. The new lending rates of the bank on loans less than Rs 20 lakh will be 10.25 percent while on amount above Rs 20 lakh, rates will 11.25 percent. The new rates will be applicable with immediate effect but existing customers will get benefit from January 1.
HDFC’s closest competitor in home loans ICICI Bank had earlier in this month reduced interest rates by 150 basis points to 11.50 percent for fresh loans of up to Rs 20 lakh.
At 10:45 am, the BSE Realty Index climbed as much as 6 per cent with Unitech, up 7.57 per cent, fronting the rally. Among other realty stocks in the limelight, Indiabulls Realty rose 5.01 per cent, Parsvnath Developers climbed 4.09 per cent, HDIL was up 4.06 per cent and DLF climbed 3.66 per cent.
Ref: theeconomictimes
Realty stocks in demand on special home loan plan December 15, 2008
Posted by dhirendra1972 in Home Loans, Loan Insurance, Lower Margin, Realty Stocks.Tags: Insurance, Loans, Momentum, Penalty, Plans, Stocks
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Realty stocks gathered momentum Monday on media reports that state-run banks will unveil special home loan plans as part of the federal government’s stimulus package.
Under the package to be announced by the Indian Bank Association, housing loans up to Rs 500,000 will be priced at 8.5 per cent, and borrowers in the 5-20 lakh category will have to pay 9.25 per cent interest, it said. The interest rates across all price segments currently exceed 10 per cent.
The special package will also offer a free loan insurance cover, waiver of pre-payment penalty and lower margins, the paper reported.
