Suraya goes burst..housing bubble been bursting for years

[KenyanPlato]

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Lol economy ya mawe comes undone if you borrow to do real estate you will be hit by the storm of bankruptcy

[RV Pundit]

Big 4 housing agenda is killing it. Uhuru has promised to deliver house for 1-3M - so why would someone go to Suraya.

[KenyanPlato]

Big 4 housing agenda is killing it. Uhuru has promised to deliver house for 1-3M - so why would someone go to Suraya.

You need to stop thinking like kihika kimani.

[RV Pundit]

Kihika was more intelligent than you! I think Housing Sector is now on wait-n-see as Uhuru promise of 500K houses pans out.

You need to stop thinking like kihika kimani.

[KenyanPlato]

Kihika was more intelligent than you! I think Housing Sector is now on wait-n-see as Uhuru promise of 500K houses pans out.

You need to stop thinking like kihika kimani.

Wait and see my foot. I been telling you that the thing is dead. You won't listen coz your head is deep inside the political class ass. If kihika was intelligent then i wonder what being a fool is like.

[GeeMail]

All big four agendaSS were stillborn. Dams scandal shows the paper trail.

[patel]

Where and when will uhuru 1m shilling macmasion being built? The dams saga has badly exposed uhuru incompetency.....how is this man going to build low cost housing?

[RV Pundit]

He just need to give chinese the money. These dams were messed by italian mafias. Chinese knows how to work in any enviroment that is very corrrupt.

Where and when will uhuru 1m shilling macmasion being built? The dams saga has badly exposed uhuru incompetency.....how is this man going to build low cost housing?

[hk]

There's oversupply of upmarket housing lavington, kile, hurlingham,parklands, parts of westlands. There are not enough kenyans who can afford to 18m-25m for apartments or 48m for a townhouse . This has nothing to do with big 4, treasury doesn't have enough money for recurring expenditure and pay debt, let alone to build houses.

[Kadudu]

All big four agendaSS were stillborn. Dams scandal shows the paper trail.

Baba wa Taifa Dr. Arap Samoei Ruto EGH, EBS, Alpha and Omega of all knowledge etc, just told us no money was lost. He has all the paper trails and so stop this manenos of a scandal that never was.

[Kadudu]

He just need to give chinese the money. These dams were messed by italian mafias. Chinese knows how to work in any enviroment that is very corrrupt.

Giving all that cash (which cash anyway?) to the Chinese will not help. Look at SGR, we paid so much money for a bleep. Now we cannot even extend the railway line to Kisumu not even mentioning Malaba. I wonder what the trains will be transporting to and from Naivasha. Flowers?

Pundit, just admit Jubilee under Uhuru alias Screwball (you gave him this name) and Ruto has screwed us.

[hk]

Meanwhile cement consumption is going down https://www.nation.co.ke/business/Cement-uptake-down-for-second-year-in-a-row/996-5022314-14lpl41z/index.html . This is a clear indicator of a struggling sector.

[RV Pundit]

Very bad - something need to be done.

Meanwhile cement consumption is going down https://www.nation.co.ke/business/Cement-uptake-down-for-second-year-in-a-row/996-5022314-14lpl41z/index.html . This is a clear indicator of a struggling sector.

[Nefertiti]

Giving all that cash (which cash anyway?) to the Chinese will not help. Look at SGR, we paid so much money for a bleep. Now we cannot even extend the railway line to Kisumu not even mentioning Malaba. I wonder what the trains will be transporting to and from Naivasha. Flowers?

Pundit, just admit Jubilee under Uhuru alias Screwball (you gave him this name) and Ruto has screwed us.

Quotable quotes.

[patel]

Suraya saga has badly exposed kenya developers. So these two clothes dealer and night club operator turn real estate developers would sell the houses off plan then turn around borrow money from the bank against the same property. In most cases they did not even own the land it was partnership with land owner.....this mess is so complicated.

[vooke]

Pundito,
Suraya has been sinking for a while before the imaginary Big4 struck.

[vooke]

Suraya saga has badly exposed kenya developers. So these two clothes dealer and night club operator turn real estate developers would sell the houses off plan then turn around borrow money from the bank against the same property. In most cases they did not even own the land it was partnership with land owner.....this mess is so complicated.

I tried to piece together Fourways

They approached Gatsbaki family with an idea.
Bring your land, we build on it, pay you back x.

How do they pay X? They approach banks to finance construction.
At the same time they start advertising the units

How it works?
Your deposits offset the bank loan and you get your house at the end.

Problem?
The same bank financing them lends to the buyers

The other problem?
They need to pay off the Gatsbaki family

The third problem?
They need to clear the bank loan

Fourth problem?
Banks finance a fraction of th total cost. The rest comes from the customers deposits

Low uptake means incomplete projects, pissed off fsmily, banks,and customers

Fifth problem?
Diverting customer deposits into fresh projects

[Kadudu]

I tried to piece together Fourways

They approached Gatsbaki family with an idea.
Bring your land, we build on it, pay you back x.

How do they pay X? They approach banks to finance construction.
At the same time they start advertising the units

How it works?
Your deposits offset the bank loan and you get your house at the end.

Problem?
The same bank financing them lends to the buyers

The other problem?
They need to pay off the Gatsbaki family

The third problem?
They need to clear the bank loan

Fourth problem?
Banks finance a fraction of th total cost. The rest comes from the customers deposits

Low uptake means incomplete projects, pissed off fsmily, banks,and customers

Fifth problem?
Diverting customer deposits into fresh projects

Sixth problem?
Financing personal lavish living standard. A Range Rover and Porsch Cayenne are not cheap vehicles to maintain.

[RV Pundit]

Cytonn may be next. Anyway the sector is going through hard times.

[vooke]

Cytonn may be next. Anyway the sector is going through hard times.

I regularly use Northern Bypass. There is a Cytonn project that has stalled. I saw the ground cleared, iron sheet fence put up, two show houses, some machinery but I have yet to see houses come off the ground something that shouldn't take 6 months.

The project borders Suraya's flagship project Fourways Junction and I think the idea was to ride on Fourways' popularity.

I don't know about others but that one along the bypass is a dud. Been like that for over two years if I'm not mistsken. Cytonn are good at PR but PR has limits.

Something else, most of the real estate research papers or publications is done by these real estate companies. Hass Consult has an influential one that keeps on hyping the real estate and has been reluctant to admit there is a glut.

Those reports shouldn't be trusted