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Housing Sales Drop 81% y-o-y in Q2 2020, New Launches by 98%: ANAROCK
As per the latest report by property consultants ANAROCK, around 12,740 units were sold in Q2, 2020 against 68,600 units in Q2, 2019; on q-o-q basis, sales dropped by 72 per cent from 45,200 units in Q1 2020. MMR and Bengaluru account for 52 per cent of the total sales in this quarter; COVID-19 dents new supply; only 4 projects (approx. 1,390 units) launched in Q2 2020 – two in Bengaluru & one each in Pune & Kolkata
Photo Credit : Ritesh Sharma
Housing sales and new launches have plunged to a new low across India’s top 7 cities in Q2 2020. Latest ANAROCK research reveals that residential sales in the quarter plummeted by 81 per cent on yearly basis in these cities – from 68,600 units in Q2 2019 to just 12,720 units in Q2 2020. Concurrently, new launches fell by 98 per cent in the period with merely 1,390 units getting launched this quarter. New launches account for just four projects - two in Bengaluru and one each in Pune and Kolkata.
"If we consider q-o-q data trends, housing sales dropped by 72% in Q2 2020 against Q1 2020 while new launches fell by 97%. Interestingly, limited new launches helped unsold inventory in the top 6 cities to shrink by 5% on a y-o-y basis – from more than 6.34 lakh units in Q2 2019, it dropped to just over 6 lakh units in Q2 2020," the report states.
Anuj Puri, Chairman - ANAROCK Property Consultants says, "A massive drop in both new launches and housing sales were, of course, expected on the back of a complete lockdown for most of this quarter. Interestingly, MMR – one of the most COVID-19-affected cities – witnessed maximum housing sales of nearly 3,620 units among all cities, followed by Bengaluru with approx. 2,990 units. Technology adoption has played a big role in housing sales of late, with many developers now strengthening their digital sales capabilities.”
Q2 2020 New Launch Overview:
Amidst the global pandemic, the top 7 cities saw only 1,390 units launched in Q2 2020, against nearly 69,000 units in the corresponding period of 2019 - a decline of 98%. On a quarterly basis, new launches fell by nearly 97%. Nearly 41,220 units were launched in Q1 2020.
In Q2 2020, only four projects were launched - two in Bengaluru and one each in Pune and Kolkata. Bengaluru added approx. 590 units (in 2 projects) in Q2 2020, witnessing a yearly decline of 95% and quarterly by 93%. Pune added approx. 750 units (in only one project) in Q2 2020 compared to 10,700 units in Q2 2019 and 7,800 units in Q1 2020 - a drop of 93% and 90% respectively. Kolkata added only one project consisting of approx. 50 units in Q2 2020, declining by 98% on y-o-y basis and 95% over Q1 2020.
Q2 2020 Overall Sales Overview:
Approx. 12,740 units were sold in Q2 2020 as against 68,600 units in Q2 2019 - a decline of 81%. In the quarter of Q1 2020, housing sales stood at 45,200 units, thus falling by 72% q-o-q. NCR, MMR, Bengaluru, and Pune together accounted for 85% of total sales in Q2 2020.
MMR and NCR witnessed significantly lower sales as compared to previous year and the preceding quarter. Sales in NCR and MMR decreased by 83% each in Q2 2020 against Q2 2019 and 74% each over the previous quarter. Current quarter sales were recorded at approx. 2,100 and 3,620 units, respectively.
Sales in Hyderabad decreased by 85% in a year – from 4,430 units in Q2 2019 to 660 units in Q2 2020. On a quarterly basis, sales declined by 75%. The city saw sales of approx. 2,680 in Q1 2020.
Pune and Kolkata witnessed a 79% yearly decline each, and a almost 70% quarterly decrease each in Q2 2020.
Approx. 2,990 units were sold in Bengaluru in Q2 2020, against 13,150 units a year ago and 8,630 units in the preceding quarter of Q1 2020. The y-o-y decline was 77% and Q-o-Q was 65%.
Overall Unsold Inventory till Q2 2020 - Negligible new supply in Q2 2020 in the top 6 cities led to a reasonable decline of nearly 5% in the unsold stock on a yearly basis. The unsold stock in Q2 2019 was more than 6.34 lakh units, which has now reduced to approx. 6 lakh units as on Q2 2020. As against the previous quarter, the unsold stock decline stood at 2%.