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Chandigarh housing board earns Rs 17.6 crore from auction of 22 residential units Real Estate News, ET RealEstate

Chandigarh housing board earns Rs 17.6 crore from auction of 22 residential units

CHANDIGARH: The Chandigarh Housing Board (CHB) earned Rs 17.65 crore from the auction of 22 freehold residential units in sectors 38 (West), 49, 51 and 63. A MIG flat in Sector 51 went for Rs 95.60 lakhs in the auction.

The total reserve price of all 22 units was Rs 16.77 crore, while the total highest bids received against these units was Rs 17.65 crore. Yashpal Garg, chief executive officer, CHB, said the board has received average of more than 5% above the reserve price of these units. During the last three months, the board has conducted three e-auctions for its 109 freehold residential properties.

A total of 76 properties have been sold so far and the remaining will be included in the next e-auction. Many more vacant properties have been identified and same will also be included in the next e-tenders for the first time, he added.

The CHB had prepared a list of 270 properties, including 11 residential (leasehold), 109 residential (freehold) and 156 commercial (leasehold), for sale.

To get a good response, the CHB had reduced the reserve price of the properties by10 per cent. Not even a single bidder expressed interest in the auction of CHB properties held in 2019 as the reserve price was too high for both residential and commercial properties.

This time, the CHB had decided to replace the e-auction process of selling properties with the e-tender process. In eauction, the earnest money deposit (EMD) for participation cannot be paid online.

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