Prism IX, the most popular of all DHA Lahore phases, has surprised us once again. In our last blog, we announced that development charges were to be imposed by the year end. We expected that this would cause a drop in rates. But, quite interestingly, the rates of residential plots here have managed to remain stable.
With the first instalment of development charges due by December 2015, DHA has started disseminating information of these charges to respective owners through mail. Accounting for postal delays, the first instalment is likely to be made by most owners by January 2016.
- Prism IX continues to be the most searched phase of DHA for residential plots since September 2015.
- Block C, which features 10-marla and 1-kanal plots, is the most browsed block of Phase IX, followed by Block R and Block J, which feature 5-marla plots.
- The average sale price of 5-marla residential plots in this phase is PKR 3,148,157, which has increased steadily since the balloting in May this year.
- The average sale price of 10-marla residential plots is currently PKR 5,098,990.
- For 1-kanal plots, the average sale price stands at PKR 7,305,579.
Except for residential and commercial plots in some prime locations where rates have fallen (because the prices being demanded were too high), property rates in Phase IX have remained stable for the most part. Such a solid response to the announcement of development charges shouldn’t be overlooked as this not only depicts the good holding power of owners here, but also that they foresee an even brighter future for this project.
A rumour circulating widely in the market suggests that the ground breaking of Prism IX is to begin in the first quarter of 2016. If this happens, property rates will jump once again. This, in other words, means that once again the time has come to make a good short-term investment in Prism IX.
But will the price appreciation caused by the ground breaking ceremony be the same for 1-kanal, 10-marla and 5-marla residential plots? This is highly unlikely.
What to buy?
When compared with same-sized plots in DHA IX Town (also known as Shuhada Town), the average sale price of 5-marla plots in Prism IX is cheaper by 78%. The price difference is 43.17% for 10-marla plots. So those aiming for a bigger piece of pie should concentrate on 5-marla plots as the profit margin is higher.
Some agents believe that price of 10-marla residential plots in Prism IX is way too high for reasons they cannot comprehend. According to these agents, when buyers can simply get a 1-kanal plot by adding another one and half million, they shouldn’t opt for 10 marla.
Where to buy?
Among the blocks featuring 5-marla plots, rates in Block R have continued to climb upwards without even taking a breather. As it is located closer to the main entry point as well as to Shuhada Town, it is safe to assume that further future price rise is more likely in this block than in Blocks J and K. Furthermore, plots enjoying prime location (such as those that are corner plots, face the park, or are on a wider road) have reached prices too high to offer you good returns. So, pick a less-than-prime plot as its rate is still attractive.
For 1-kanal plots, the blocks that occupy central locations of Phase IX (Block A, C, and Q) have been more popular among investors. If you find a good deal here, you shouldn’t miss it. A good plot in these blocks is tagged around PKR 6,500,000. If you can’t find such a deal in these blocks, look for one in Blocks D, P or N.
Since the excitement level among investors of Phase IX hasn’t dipped yet, we cannot assume that the first few instalments of development charges will have any drastic effects on the rate. Moreover, the rumour of Prism IX’s ground breaking in Q1 2016 has given people more incentives to hold on to their investments.
For new entrants, the stable rates and temperate marketing activity right now makes scoring good gains in another few months a possibility.