CHB’s trail of flop auctions continues

Despite slashing the reserve price of commercial properties by 10%, CHB found takers for only 10 of the total 136 residential and commercial properties on offer

Contrary to the promising response to the GMADA auction, Chandigarh Housing Board’s(CHB) latest monthly auction turned out to be yet another flop show.

Among the commercial properties, only two in Sector 49-B, Chandigarh, were sold, bringing in a total of ₹93 lakh against the reserve price of ₹86 lakh. (iStock)

Despite slashing the reserve price of commercial properties by 10%, the board found takers for only ten of the total 136 residential and commercial properties on offer.

For the e-auction that concluded on Tuesday, the board had invited bids for 44 freehold residential properties and 92 leasehold commercial properties. But it managed to sell only eight residential sites, located in Sectors 38 West, 40, 49 and 51, and Indira Colony, Manimajra, earning ₹4.2 crore against the reserve price of ₹4.1 crore.

Among the commercial properties, only two in Sector 49-B were sold, bringing in a total of ₹93 lakh against the reserve price of ₹86 lakh.

Even in the previous auction in January, CHB was able to sell only nine of the 140 units, including seven residential and two commercial properties.

CHB CEO Yashpal Garg said, “The residential properties received a better response, compared to commercial units, primarily due to the leasehold factor.”

Umang Jindal, CEO of Homeland Group, said, “When commercial properties in Mohali are available on freehold basis, why would people invest in CHB’s leasehold properties?”