Property market being recession hit was evident once again at the auction held by Greater Mohali Area Development Authority (GMADA) on Friday as the authority could sell only 12 of the 49 listed sites. The revenue raised through auction on Friday was Rs 22 crore, even as GMADA couldn’t sell even a single residential property. Experts say people were not interested in GMADA properties as the collector rates were four times the market rates.
Meanwhile, the maximum price was fetched by the lone school site in Sector 68, which got sold for Rs 5 crore against its reserve price of Rs 3.5 crore. Among the shop-cum-offices (SCOs) the highest bid was for a 187-sq-yard SCO in Sector 68 which was sold for Rs 3.7 cr against a reserve price of Rs 3.62 crore. A 22.68-sq-yard booth in Sector 67 went for Rs 43 lakh against a reserve price of Rs 37 lakh.
Though the reserve prices for the properties had been compatible with the open market, GMADA still failed to attract investors for its commercial as well as residential sites.
Those in property business say the collector rate for residential property in the market is Rs 22,000 to Rs 28,000 per sq yard, while GMADA was charging Rs 88,000 per sq yard. Estate officer, GMADA, Rajdeep Kaur, said, “It is not that we have mindlessly fixed the collector rate at Rs 88,000 per sq yard. We calculate it using a formula and if the property is not sold in two consecutive auctions we reduce the said rate. There was no bidder present for the residential plots.”
Property dealers also criticised GMADA authorities for overlooking its own policy during the auction. They said that as per the policy, if the authority get at least three bids more than the reserve price, it should sell the site, but the same was not followed during the auction on Friday.
Former president of SAS Nagar property consultants’ association Shalinder Anand said, “Why would anyone buy a residential plot from GAMDA and pay four times more collector rate. This is criminal and GMADA needs to change its policies if it wants buyers.”