The auction of 12 freehold residential units fetched the Chandigarh Housing Board (CHB) ₹9.8 crore on Thursday. Three of these flats went for more than ₹1 crore each.
A three-bedroom flat in Sector 63 was sold for ₹1.07 crore against a reserve price of ₹1 crore. An MIG flat in Sector 51, with a reserve price of ₹90 lakh, brought in ₹1.07 crore. In Sector 49, a two-bedroom flat earned ₹1.01 crore against the reserve price of ₹1 crore. The other nine flats raked in anywhere between ₹24.65 lakh and ₹95.63 lakh (see box).
“Even after considerable increase in the reserve price of some of the dwelling units, CHB received bids nearly 6.5% above the reserve price. However, if the highest bid amount is compared with the reserve prices as per the earlier e-tenders, then the board has received 17.59% above the previous reserve prices,” said Yashpal Garg, chief executive officer, CHB.
The board had invited e-tenders for the sale of 46 built-up dwelling units on freehold basis. Among these, 12 units were included for the first time, while the rest were those that could not be sold in the last three auctions.
{{/usCountry}}The board had invited e-tenders for the sale of 46 built-up dwelling units on freehold basis. Among these, 12 units were included for the first time, while the rest were those that could not be sold in the last three auctions.
{{/usCountry}}The units were available in Sectors 38 (West), 49, 51 and 63. The last date for submission of e-bids was August 4 and the bids were opened on Thursday. A total of 30 e-bids were received for the 12 dwelling units sold.
Properties worth ₹71 crore sold in last four months
In December 2019, CHB had offered 212 properties, but found no taker due to high reserve prices. This year, during the pandemic, the board decreased the reserve price to attract more buyers. After getting good response to its auction, it increased the reserve price of several freehold properties and held more auctions.
Notably, while a major chunk of its freehold residential properties have been sold off, it has not received great response to its leasehold properties – both commercial and residential.
During the last four months, the board has conducted four e-auctions for 121 freehold residential properties and 87 properties have been auctioned for ₹70.59 crore.
On the contrary, only nine commercial leasehold properties have been sold for ₹4.73 crore and two leasehold residential units for ₹1.74 crore.
Garg said a number of initiatives helped CHB turn around its fortunes in the auctions this year, compared to those held in 2019.
“Cleaning and repair of units, personal inspection of the premises, change of mode of disposal from e-auction to e-tender, helpdesk to assist in submission of e-bids, answers to queries and reaching to the public through various modes of mass communication seem to have elicited better response this time around,” said Garg.
Kamal Gupta, president, Chandigarh Property Consultants’ Association, said, “In 2019 there was recession in the property market. But now, as substantiated by CHB auctions, there is an upswing in city’s realty sector.”
Properties still up for grabs
Bids can be placed for 151 commercial units and 38 residential units, all leasehold, till 10am on August 10. The unsuccessful bidders of Thursday’s e-tender may participate in these e-tenders. However, for the remaining 34 freehold residential units the next e-tender may be invited after a fortnight. E-bid submission can be made on www.etenders.chd.nic.in. Every bidder is required to get registered on the portal.