Taj Residencia is a housing society brought by Sardar Group of Companies, the developers of The Centaurus. Sardar Group of Companies is chaired by Sardar Tanveer Ilyas Khan, the ex- minister in the caretaker government of Punjab and currently the chairman of Punjab Board of Investment Trust. In this post, you find out the impact of Taj Residencia Launch, scheduled on 5 October 2019, on the market price and investor returns.
Taj Residencia is located parallel to sector I-14 and I-15 at a drive of only ten minutes from the New Islamabad International Airport and 5 minutes from Quaid-e-Azam International Hospital. The location of Taj Residencia has been a key selling factor for the society. Moreover, the successful delivery of the Centaurus mall has also been a key factor in building the reputation of the developers.
Taj Residencia had started booking for plots around July 2018. Since the development work was being done at a rapid speed and most of the land had been acquired, it was expected that the society would be launched by the end of 2018. However, due to delays in acquiring a No Objection Certificate (NOC) from RDA, the launching of the society got delayed by a year.
Owing to the developer’s reputation with Centaurus mall and fast development work, the society was able to sell 800 plots at 20% down payment. However, most of the buyers did not receive the intimation letter and the details of their three year installment plan. Furthermore, RDA sealed their marketing office and society stopped bookings and transfers process.
Failure to deliver intimation letters and installment plans to all buyers and investors, significant delay in getting NOC from RDA created a lot of uncertainty in the market among the investors and end consumers. Resultantly, the investors and end consumers lodged their complaints to the officials of Taj Residencia.
Recently, Taj Residencia has received the NOC from RDA and now it is expected to launch on the 5th of October, 2019. After the society is launched, it can officially run media campaigns and conduct the booking operations including new bookings and transfers. Moreover, granting of NOC from RDA adds credibility to the housing society and reduces the uncertainty that had been prevalent in the market for the last one year. The society is also expected to raise the prices with or after the launch. On the positive side, although the return on investment has not been favourable in the past year, now is a great opportunity for investors to exit during the hype created by the launch.
Nevertheless, even though Taj Residencia is going for a rapid come back with the launching, it may not be favorable for all of the interested parties. The period of delay allows buyers to be more relaxed with submitting the installments and further dues. It is believed that once launched, societies become strict about collecting the pending installments and dues for buyers to retain their bookings. Furthermore, the pending dues, if not submitted immediately, might be charged with a late fee or surcharge making it difficult for short-term investors to sell their files immediately after the launch.
One view is that such a high supply of Taj Residencia files in the market can lower the profits available. Thus, we believe the launch of Taj Residencia will boost investors’ and end consumers’ confidence bringing a surge in market prices which may vary with the exact location of a plot. On the other hand, the surge in prices might be short-lived due to a large number of investors wanting to sell at the same time.
For further details about Taj Residencia, contact Sahban Tariq Malik from Beacon Investment at +92 334 5557734.