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Chandigarh: After several disappointing rounds of property auctions, the Chandigarh Housing Board ,chb) is all set to slash the reserve price of its residential properties.
“We are looking at reducing the reserve price of residential properties by around 10 per cent in the upcoming auction,” said a senior official.
In the last auction, chb Residential properties, even though all were freehold, received a very poor response from buyers.
In the latest auction which ended on Thursday, only two out of 35 residential properties could be sold. In April’s auction, four of the 38 residential freehold properties were sold. In March, the CHB could get bidders for only eight residential properties out of 44 residential properties offered for auction. In February, 49 residential properties were offered, but only seven could be sold.
Commercial properties have also performed poorly. Not a single commercial property was sold out of 88 properties auctioned on June 5. There were 90 commercial properties available on leasehold basis in April, but only two were sold. Of the 92 commercial leasehold properties offered in March, only two found bidders.
“In the case of commercial properties, the reason for the poor response is one factor in the leasehold alone. The property market sentiment has been strongly against buying leasehold properties for quite some time now. Hence, leasehold properties of other agencies like Municipal Corporation and UT Estate Office have also received poor response. Now, with the UT administration refusing to sell CHBs after converting commercial leasehold properties into freehold, the demand and demand for commercial leasehold properties has further declined. “The reduction in the reserve price is likely to attract more bidders to the auction and we expect a better response this time,” the official said.
From April 2021 to December 2022, the board sold 275 units, including 200 residential and 10 commercial on freehold basis, 16 residential units and 49 commercial units on lease, netting Rs 185.33 crore.
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