DHA Lahore shows interest in acquiring State Life Phase II

Rumours regarding the expected merger of State Life Housing Society Phase II into DHA Phase IX Lahore have been circulating in the market for a while. Our sources have confirmed that DHA has made an offer.

State Life President Shehzab Waheed has called a meeting on Sunday, November 22, to discuss the idea with board members. From the looks of it, it appears that the final decision will be based on the mutual consent of the members.

State Life Phase II enjoys an excellent location. It is nestled between its own Phase I, DHA IX Town and the famous DHA Phase IX. Unfortunately though, the society hasn’t seen any development ever since it was launched about a decade ago. Additionally, acccording to our sources, the society has oversold plot files for State Life Phase II.

Because the society has an excellent address, coupled with the fact that Phase I is fully established and inhabited by a large number of people, the delay in Phase II’s development raises serious questions. To me, it appears that the authorities concerned were anticipating an offer from DHA, which kept them from developing this phase. Furthermore, the shockingly low plot rates in State Life Phase II highlight the uncertainty surrounding the future prospects of the project. It seems that the authorities are simply not interested in fixing the issues.

With such an offer on the table, it appears that State Life Housing Society has no better option but to merge its Phase II with DHA. This does, however, raise serious concerns among plots owners and those dealing in this project. One major concern is that DHA has offered a 10-marla plot file in Phase IX against 1-kanal plot in State Life II.

The current market rates of property in DHA Phase IX and State Life Phase II show a stark contrast. Although DHA will take many more years to develop its Phase IX and offer property possession, owners and investors have no doubt that it will deliver the project as promised. This is the very certainty that’s missing from State Life Phase II.

Let numbers do the talking

The average sale price of a 5-marla plot in State Life Phase II is PKR 1,550,000, while the current average rate of the same-sized plot in Prism IX is PKR 3,148,157. In the case of 10-marla plot, the difference is even greater as you can find a decent 10-marla plot for PKR 5,098,990 in Phase IX while the current rate in State Life Phase II is PKR 2,150,000. For 1-kanal residential plots, the average rate in DHA Phase IX is PKR 7,305,579 and that in State Life Phase II is PKR 3,250,000.

The difference in rates might seem tempting but it should be kept in mind that development charges are yet not included in the price of DHA Phase IX plots. Moreover, DHA will re-ballot State Life Phase II, leaving plot owners uncertain about the location of their properties.

I believe that with such a bad track record in Phase II, State Life can make a graceful exit by availing DHA’s offer. Land owners, too, shouldn’t fret as their investment will be more secure with DHA than with State Life.

What is your take on it? Let me know through your comments.