My question is that premium on almost all properties in BTK have increased ever since the boom started whereas 3 bed apartment is lagging behind by far. If seen in the realistic terms the unit area price of 3 bed is almost half of the 2 bed apartment.
Reason quoted is the weak demand for 3 bed apartment.
This helps us draw a conclusion that the demand in BTK isn't investor/end user driven, rather agents driven. The agents have invested their money in properties that apparently cost less upfront regardless of the final price.
I would request the senior members and experts to shed some light on the above analysis and advise if we are heading for another crash.
Picture looks gloomy for BTK if my above analysis is proven right.
The initial ofree price of 3 bed room apartment was ridiculously high… Why would someone book this apartment when the 200 yards villa was available in the same price… Whereas 2 bed room apartment was a very good deal. Only 21 lac after discount. That’s why it created excessive demand… I believe ur conclusion is complet Ely wrong and u need better research
Umair, I would like to add here that there is definitely some thing behind the 8 marla villa, it cannot be mistake from Bahria to keep it so low priced, two bed and 3 bed are justified in terms of area difference between two, but villas are definitely under priced, I am afraid this lowest priced booking villas will be thrown away some where at the end or will delayed the possession to max or might come up with some quality variance, on the day one when BTK announced their initial bookings I read 3-4 times the prices of 8 marla villas, that might be a typo error, again i read the other categories, only one thing which was not matching in whole price list was the prices of 8 marla villas.
Sir i agree that it was not a mistake but a deliberate pricing strategy and i have already explained the thinking behind it…whenever a smart business manager starts a new business he tries to launch a group of products… Not all products have equal value proposition for the consumers… This is done deliberately to manage ROI whereas deliberately 1 or 2 products are given maximum value proposition so that few lucky customers attain the status of “customer delight”… These delighted customers spread positive word of mouth and it attracts new customers for your business… Not just towards the 1 or 2 products which offer customer delight but towards all the products this is exactly what happened with BTK… Initially the prices dived below the offer price and only the 8 marla villa was giving profit… Slowly the profit on this product started picking up and so did the interest of the local investors in khi… Suddenly when some people cashed out on good prices it brought fresh investment into btk not just for villas but for all categories… Subsequently everything started rising… Its all a marketing tactic sir… And a successful proven marketing tactic… The villa quality would be exactly the same as the one offered for fresh booking at higher prices although they might be delivered later
Sohail, I agree with you on 2 bed pricing that its not a mistake, but quality would be same like other 3/4 bed as if you check covered area for all those 3 variants they all cost you EXACT same cost/square feet.
2 bed (950 sf): cost 26,60,000 = cost/sf = 28000
3 bed (2250 sf): cost 63,00,000 = cost/sf = 28000
4 bed (2950 sf): cost 82,60,000 = cost/sf = 28000
So, I can't find any reason to say 2 bed is better then rest of other, only reason of price hike I can think of is investors/dealers are holding most of those file due to less capital investment.
I also failed to understand why any small family would ever buy 2bed flat miles away main City as commuting will cost them alot, and if they have enough budget then genuine buyer will always go for better living, i.e. If someone is living in 2 bed flat in main city, they always try to get 3/4 bed flat or 250sq plot/home to increase their living standards, as 2 bed is easily available in same range within city.
Agree with Wasi Totally.
2 Bed Premium is 12 lac.
3 Bed premium is 10 Lac.
This takes the unit price of
2 bed to 3473/Sft
3 bed to 3022/Sft
(After 500,000 discount adjustment)
Now If the 2 Bedroom price is benchmarked then the price of 3 Bed would be
2250*3473 = 7,815,789
or 2,600,000 without installments. (Only down payment included).
I believe either 2 bed is over priced at the moment or may be 3 bed is underpriced by one million at least.
Or Probably it is only Dealers Game. No genuine investors.
And i am afraid if these two bedders turn up to be same thing as the one in phase 8 awami villas or what ever then its a crap,at the moment prices are all speculative once you see something on ground then premium might change,as 5 marla 125villa is of 43 and 8 marla for 48,so even that doest make a sense at the moment
The way 5 marla is being traded as PARCHI. It's more like a stock exchange rather than a solid property market.
I believe it's a gamble which gamblers love. One may loose it like phase 9. Business district, enclave 2 but on the other hand there's a lot for those who want to multiply their profits within days.
Very ignorant and innocent assessment guys… Comparing a property of Rs.2.5 million with a property of Rs.6 million on the basis of per square ft rate is height of ignorance… Per square ft comparisons are always made in similar budget categories…two bed room is being traded more as its a very reasonable and affordable commodity for anyone (middle class individual) who wants to own a liveable home in bahria town without going through the hassle of buying a 5 marla plot and then constructing a home for himself… In my view the failure of 3 bed room is not due to the high demand of 2 bed room apartment but due to the pricing of other options in similar price range… Even now the 200 yard villa (old) is available in the same price range as 3 bed room apartment then why would some idiot go and buy an apartment over a home… Start making sense guys