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3BHK flat in Sector 63 goes under hammer for ₹1.05 crore
The reserve price of the CHB property was ₹86 lakh; two other residential properties were also auctioned for over ₹1 crore
A three-bedroom flat in Sector 63 fetched ₹1.05 crore against a reserve price of ₹86 lakh in the Chandigarh Housing Board (CHB) auction that concluded on Monday.
Two other residential properties, also three-bedroom flats in Sector 63, went for more than ₹1 crore against a reserve price of ₹86 lakh.
This was the first auction held by CHB in one-and-a-half years. Even though CHB could auction only 36 dwelling units out of the 109 built-up freehold properties up for auction, it bettered its previous auction performance.
CHB’s last auction in December 2019 had turned out to be a damp squib due to lack of buyer response to its 212 properties, the blame for which was pinned on high reserve prices. The offerings included 64 residential units, of which nine were on leasehold and 55 on freehold. Most of these were located in Sector 63.
This time around, the CHB has reduced the reserve price by 10% to make the properties more attractive to buyers. CHB earned ₹29.41 crore from the auction of 36 dwelling units. This was the first phase of the auction.
Properties sold in Southern Sectors
The CHB invited e-tenders for the sale of 109 built-up dwelling units on free-hold basis. The units were available in Sector-38 (West), Sector-49, Sector-51 and Sector-63. The deadline for submission of e-bids was 2pm, April 30, and the technical bids (first envelop) were opened on April 30 after 3pm.
Single bid each was received for 12 dwelling units, two bids each for eight units, three bids each for seven units, four bids each for four dwelling units, six bids each for two dwelling units, eight bids each for two dwelling units and 12 bids for one dwelling unit.
Realty sector looking up
Even as the city gets battered by the second wave of Covid-19 infections, the CHB getting a positive response for its auction indicates that the real estate sector is showing an upward trend.
Yashpal Garg, chief executive officer, CHB, said, “The e-tender was very successful and provided an opportunity to genuine buyers to have a residence in Chandigarh. We were neither expecting so many bids nor such high bids against the reserve prices. It will impact the real estate prices in those particular areas. Out of the 105 bidders, only 36 remained successful bagging the property they had set their eyes on. We will invite bids again for the remaining units.”
Kamal Gupta, president, property consultant association, Chandigarh, said, “In the midst of the pandemic, CHB could sell properties at reasonable prices. This suggests the market is still strong. If CHB had rationalised prices and reduced these as per market conditions, the response may have been better.”
