Slack sales mark housing fair

December 20, 2011

The last day of the 5-day REHAB fair in the capital witnessed a heavy rush of visitors but booking and sales of plot or apartment were low, which industry insiders think is a result of economic crisis in the country.

The share market debacle, non-access to bank loans, lack of gas and power connections to the newly built-up flats also contributed to slack sales at the housing fair.

Many find overall turnout and sales lower this year than the years earlier. Some blame the fair venue, which is in a corner of the city, for low turnout. Besides, they pointed out that the fair was disturbed due to official vacation and time schedule.
“One day the fair began in the morning and the following day the opening time was in the evening, so the people became confused,” said an owner of a real estate company, requesting anonymity.
He blamed the present leadership of Real Estate & Housing Association of Bangladesh for selecting wrong venue and mismatch in time schedule. The REHAB fair began on December 15 and ended Sunday evening.
“We got three flats booked this time, while the number of flats booked last year was seven,” said Muhammad Abdullah Sohail, a senior executive of Heritage Real Estate Ltd.
Mahammad Tariqul Alam of Comfor Living Limited said his company got booking for only one flat during the five-day fair. “The market is bearish mainly due to lack of gas and power connection to the newly built flats.”
People do not want to buy an apartment if it does not have power and gas connection, he pointed out. According to REHAB sources, around 15,000 newly built flats could not be handed over to buyers because of energy crunch.
“Visitors were many, but actual buyers a few,” said Kazi Abiruzzaman, assistant manager (sales) of Home Design Ltd.
The venue for such a fair should be at a better place like Hotel Sonargaon or Rupushi Bangla to bring actual buyers, he said.
According to him, most visitors came from Mirpur and Mohammadpur area.
Some of them are students and came just to collect brochures of different companies, he said, pointing to the heavy rush of visitors in front of different stalls.
Apartment prices also went beyond the reach of middle income people. The average price for an apartment in the posh Gulshan, Uttara, and Banani area ranged from Tk 10,000 to15,000 per square feet. It is Tk 4,200-7,000 per square feet in Mirpur, Mohammadpur and Kallayanpur area.
Masum, an owner of an export import company, said he was looking for a flat in Motijheel area. BDDL demanded Tk 40,000 per square feet. The average price of that company in the area ranges between Tk 35,000 and 40,000 per square feet, he informed this correspondent.
Delta Brac Housing Coporation Ltd through its a stall at the fair gave spot sanction for loans against buying apartment.
The number of spot sanctions for loan this year is lower than previous years, said Mahbubul Bashar Chowdhury, assistant manager (loan) of the company.
Basher said his company could give spot sanction to around 100 loan applicants.
He said the turnout at the fair was low in the morning but it increased in the afternoon.
Afir, a businessman, was looking for a ready flat. But he found hardly any ready flat for booking at the fair.
“The price is okay but it is difficult to get a flat at the right time and right place,” Arif said. It takes several months, even years, to get a flat after giving booking, he alleged.
Meanwhile, the regulatory body for the housing sector, Rajdhani Unnayan Katripakkha (RAJUK), tightened its belt against exhibition of unapproved projects at the fair. It took stern actions against the realtors who have no project approved by the RAJUK but participated in the fair. The RAJUK noticed around 30 such companies and many of them wrapped up their stalls much before the end of the fair.
A seven-member team led by Noor-e-Khoda, assistant town planner of RAJUK, was visiting different stalls and checking any approval obtained by different companies for housing projects. The RAJUK planner said the team found three such stalls on Sunday which did not have any approval.
The team has asked the companies to close down the stalls and stop displaying at the fair.
A total of 280 real estate companies showcased various features of their projects. The companies also received booking on the spot for flats and housing plots.

Slack sales mark housing fair

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