CHB e-auction: Only 16% of 191 properties find takers

Up for grabs were 132 leasehold commercial properties, 31 leasehold residential properties and 28 freehold residential properties in Chandigarh; but only 32 could be auctioned
Details of successful highest bidders have been uploaded on the CHB website. (HT Photo)
Details of successful highest bidders have been uploaded on the CHB website. (HT Photo)
Published on Oct 20, 2021 04:37 AM IST
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ByHT Correspondent, Chandigarh

Only 16% of 191 properties on offer could be auctioned in the latest e-auction by the Chandigarh Housing Board (CHB).

Up for grabs were 132 leasehold commercial properties, 31 leasehold residential properties and 28 freehold residential properties. But only 32 could be auctioned in the exercise completed on Tuesday.

Most of the commercial properties were in Manimajra and Sector 61. Some were also available in Sectors 38 West, 40-A, 49 and 51-A. These included small, big and service booths. The auction process was initiated in September.

In the case of 132 commercial properties on leasehold, 19 were auctioned for 8.56 crore against a reserve price of 7.05 crore.

Among these eight each are in Manimajra and Sector 51, two in Sector 38 West, and one in Sector 49. The highest bid was 51.5 lakh for a property in Sector 51-A, against a reserve price of 44.2 lakh.

The latest e-auction by the Chandigarh Housing Board concluded on Tuesday. (HT)
The latest e-auction by the Chandigarh Housing Board concluded on Tuesday. (HT)

As of 31 leasehold residential properties, only four could be auctioned. These fetched the board 1.86 crore against a reserve price of 1.82 crore. The top seller was a high-income group flat in Sector 45 that was priced at 96.68 lakh and went for 98.11 lakh.

In the category of freehold properties, 28 were available, but only nine could be auctioned for 5.86 crore against a reserve price of 5.66 crore.

These are mainly in Sectors 51 and 63. A medium-income group property in Sector 51, with a price tag of 90 lakh, got the highest bid of 95.15 lakh.

An official said total reserved price for sold units was 14.54 crore and their sale brought in 16.29 crore.

“The total highest bids are 12.04% above the total reserve prices. Specifically, the highest bids for commercial units were 21.40% higher than the average reserve prices,” the official said.

Earlier set as October 8, the last date for bids was extended in view of the festive season. Also, with a 10 to 20% cut and change in the computation method, the reserve price was also brought down by 10% to 50%.

But despite that, CHB did not find many takers. The low demand is mainly being attributed to high reserve price compared to the properties’ location and also most properties being leasehold.

Details of successful highest bidders have been uploaded on the CHB website. They are required to pay 25% of the total amount by October 27 to avoid forfeiture of security deposit.

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Friday, December 03, 2021