The recent auction conducted by the Chandigarh Housing Board (CHB) witnessed a disappointing outcome, with only two out of the total 123 properties finding buyers. The auction included residential freehold and commercial leasehold properties, but the majority remained unsold. This follows a trend of low success rates in previous auctions by the CHB. Experts attribute the challenges to factors such as high collector rates and limited demand for leasehold properties. The CHB continues to explore electronic bidding procedures to attract interested buyers, with eligibility open to residents from across the country, including NRIs.
The Chandigarh Housing Board (CHB) experienced yet another disappointing auction as only two out of the total 123 properties were successfully bid on. These properties consisted of 35 residential freehold and 88 commercial leasehold options, which were up for auction. The auction concluded last week on Wednesday. The auctioning process commenced on May 11th.
The pair of residential units with freehold status were recently transacted for a sum of Rs 1.26 crore, which exceeded the initial reserve price set at Rs 1.23 crore. A flat containing two bedrooms situated in Sector 51 A has been sold at an auction for Rs 98.50 lakh, as opposed to the reserve price of Rs 95.34 lakh. A Sector 26 EWS unit was sold at an auction for Rs 28.35 lakh, slightly exceeding the reserve price of Rs 28.25 lakh.
Out of the 128 properties put up for auction on April 25, only six were successfully sold. The CHB made a clever Rs 3.84 crore from the auction, surpassing the reserve price of Rs 3.70 crore. Four of the 38 properties that were freehold and meant for residential purposes have been purchased. A two-bedroom apartment located in Sector 51 A was sold for Rs 98 lakh, exceeding its initial reserve price of Rs 92 lakh.
A second two-bedroom apartment in that area was sold for Rs 98 lakh, which was slightly higher than the starting price of Rs 95 lakh. Out of the total of 90 commercial properties that were up for leasehold, only a meagre two had been sold. The CHB successfully managed to sell only 10 out of the 136 properties available in the auction that ended on March 7th.
Out of the 44 freehold properties for residential use, only eight were efficiently sold through an auction process. Out of the total 92 available commercial leasehold properties, only two have received bids from interested parties. The CHB was able to secure a sum of Rs 5.19 crore during the auction. The most expensive residential property sold was a two-bedroom unit located in Sector 51-A. The starting price for this property was Rs 95 lakh, but it was ultimately sold for Rs 1 crore. The least expensive property sold at an auction was a dwelling unit in Sector 38W reserved for the economically weaker section, which was sold for Rs 25.49 lakh, just slightly exceeding the reserve price of Rs 25.47 lakh.
In February, out of the 140 units available for auction, only a small number of nine units received bids. In December of the previous year, the CHB was only able to successfully market and sell one out of the total of 92 commercial leasehold properties.
According to experts, the high collector rate prevalent in the city is the key factor impeding the sale of leasehold properties. The board is consistently involved in the process of acquiring electronic proposals for its unoccupied properties. Anyone who is at least 18 years old and residing in any state of the country is eligible to take part in this electronic bidding procedure. NRI buying property is an option, and bidding is open to all interested parties. The highest bidder will be the sole purchaser of the house based on the reserve price determined by the board.
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