The vibes for investing in State Life Cooperative Housing Society Phase II are getting stronger after the society had its Annual General Meeting (AGM) on March 11, 2018. This meeting was presided over by State Life Cooperative Housing Society President Muhammad Asghar. The AGM was as productive as many expected it to be. Here is all you need to know about the fate of State Life Phase II, as decided in the meeting.
The AGM details
In the AGM, it was decided that;
- State Life Phase II will become State Life Phase I Extension.
- Phase I Extension will be developed and delivered in the next two years
- Owners of 1-kanal plots will get 14-marla plots instead, while 10-marla and 5-marla plots will shrink to 7-marla and 3.5-marla plots respectively.
- Those looking to get possession in one year will get a 10-marla plot against their 14-marla plot (that previously measured one kanal).
- The owners of 10-marla plots interested in getting possession in one year can do so by settling for a 7-marla plot.
- A new map for the society has been sent to Lahore Development Authority for approval
- The approved map will be shared in the next three months
Decoding the new offer
So, if you own a 1-kanal file of State Life Phase II, you will get a 14-marla plot, possession of which, as committed by the AGM member, will be handed over after two years. And if that’s not what you want, you have the option to surrender 4 marlas and get a 10-marla plot, possession for which will be given in about one year. The deal for owners of 10-marla plots, which have now become 7-marla plots, is to get a 5-marla plot if they want possession in one year. Please note that the society will only extend this offer to 500 plot owners who will apply for it.
How did the old offer turn out?
A similar offer was made back in 2016, where the society selected owners of 642 plots to grant possession to in one year. After the selection process and the subsequent delays, these 642 plots are now moving close to be handed over. According to sources, the society will hand them over by July this year. At the moment, work is being done on the road network, where road carpeting is yet to be started while rest of the development work has been completed.
It has been seen in the past that near and after the AGM, market demand for plots in State Life Phase II spikes. This has also been the case this time. The market currently has more buyers and almost no sellers. Potential buyers are hoping to make some short-term investments, while the owners, some of whom have been waiting for years to see their investments mature, believe that they need to hold on a bit longer to get much better returns. In other words, there is little movement in the market and that’s despite the fact that many want to invest here.
Impact on rates
The interested buyers are quoting a rate higher by 25% than the price recorded some months ago. The demands put forth by the owners who are willing to sell off, are higher by 35 to 40% than the market rates recorded before the AGM was announced. Currently, there are two type of plots available in State Life Phase II (now called the State Life Phase I Extension); the 642 plots for which possession is due in the next three months, and all other plots for which development work is yet to be initiated. Here is the rate of residential plots, for which possession will be given in July:
|Plot size||Price Range|
|10-Marla||PKR 3,800,000 – PKR 6,200,000|
|5-Marla||PKR 2,700,000 – PKR 3,000,000|
For rest of the plots, the market rate is;
|Plot size||Price Range|
|14-Marla||PKR 2,400,000 – PKR 3,600,000|
|10-Marla||PKR 1,550,000 – PKR 1,700,000|
|3.5-Marla||PKR 1,000,000 – PKR 1,250,000|
In the AGM held last year, the development charges were decided to be PKR 50,000 per marla, where the society was to pay 40% of the dues while the remaining 60% were to be paid by the developer. In the recent AGM, details on development charges for the yet to be developed plots haven’t been shared. Further details about inviting applications for 500 plots to be developed on a priority basis are also not available yet.
It is expected that as soon as the needed approvals are sought from the society’s governing body, details will be shared with the stakeholders. As and when there is an update on it, we will share it with you. In the meanwhile, if you have any queries or feedback on this article, let us know through your comments.
For further consultation, you can also give a call to Haziq Hussain of Farooq Bhai Real Estate at +92-321-899-9987.