KARACHI, Oct 5: Bullion, real estate and commodity dealers are still confused over the question as to where the money is heading after September 11 incident in the US.
As far as real estate market is concerned, brokers said that investors, who were already on the sidelines since May 1998 atomic blast followed by deteriorating investment scenario, have further receded into their shell.
A estate dealer in Clifton area said that the market had seen a slight buying spree after July by the genuine customers. The situation has now changed. “Buyers come to our office but do not return next time or make a call, saying that let the situation return to normalcy,” he said.
However, he said that the prices in Clifton and Defence areas remained intact after September 11 but the market even today lacks any desperate seller. Even the buyers are perturbed over the situation.
If the US retaliates, the real estate market will further receive a severe jolt. At a time when prices of property are stagnant, and in some areas they have seen a drop, investors are still unwilling to grab the opportunity to make windfall in boom period.
“Investors are putting up their money in other trade, but I cannot tell what are their latest lucrative options now,” another dealer in Clifton area said.
Real estate business was anticipating investors after they would bring in money from the US, Europe and Dubai, but fear of attack on Afghanistan had restricted them to take the risk, he said.
“A consumer now gives his offer for a 1,000 yards bungalow in Defence area at Rs7 million instead of its original price of Rs10 million, which results in non-materialization of any concrete deal,” he said.
He said conditions to invest both in dollar and real estate had been worst after September 11 disaster in the US.
An estate agent in Gulshan-e-Iqbal area said that the prices in some areas had declined by 10-20 per cent, and buyers had started coming after Sindh government’s decision to cut stamp duties and registration fee, which resulted in cutting cost of a house.
“Currently the situation is at standstill, and the market lacks presence of even genuine buyers in fear of war like situation,” he said.
Investors have already withdrawn from investing in gold business but a leading importer and exporter of gold has a different view, saying that his company has been receiving frequent enquiries for gold bar after the fall of dollar in recent days.
An importer believes that the investors and even general public are coming in gold business since value of the greenback has soured.
However, a spokesman of Karachi Saraf and Jewellers Group has a different view. He said that the bullion hall in Sarafa Bazar has been passing through the worst period in terms of trading these days.
“When people do not have surplus money, how can they buy a gold bar of over Rs70,000,” he questioned.
On the other hand, dealers and wholesalers of various essential items are also hesitant to pile up inventory in order to cash it in a war like situation. Retailers said that prices of almost all the items are intact and the market lacks any element of panic buying.
“Liquidity crunch and falling buying power has kept the customers from buying in bulk,” a retailer said adding that people are buying items as per their requirements.
