CHB's efforts to boost auction sales fall short despite price reductions

Chandigarh Housing Board (CHB) has been grappling with a persistent lack of interest from potential buyers despite its regular efforts to auction properties. Approximately a year ago, CHB put 92 commercial properties up for auction, and last month, it made a renewed attempt with 88 commercial properties. Unfortunately, this effort proved fruitless as there were no takers. The last successful auction for commercial properties took place in April. Earlier in the year, the UT administration rejected CHB's request to convert its commercial leasehold properties to freehold, adding to the challenges faced by the housing board. While the response to residential properties has been relatively better, it is far from encouraging. Despite implementing significant price reductions, ranging from 30% to 40%, for its leasehold properties, CHB struggled to attract buyers for its commercial units. Even with reduced reserve prices for residential freehold properties, buyer response remained lacklustre. In the most recent November auction, CHB offered 116 freehold residential and leasehold commercial properties, with only three of the former finding buyers. The total revenue from these sales, which barely exceeded the reserve price, amounted to Rs 80.12 lakh. One of the properties, an economically weaker section (EWS) flat in Sector-38 (West), was sold at Rs 27.41 lakh, slightly above its reserve price of Rs 27.08 lakh. The August auction saw CHB selling only four out of 120 properties, including four residential units out of 32 and zero takers for the 88 commercial properties on offer. The revenue generated, Rs 1.98 crore, only marginally surpassed the total reserve price of Rs 1.88 crore. In the July auction, CHB managed to sell eight out of 128 properties. Of the 40 freehold residential properties, eight found buyers, while none showed interest in the 88 leasehold commercial properties. The revenue earned was Rs 7.87 crore against the reserve price of Rs 7.16 crore. The May 31 auction witnessed a meagre response, with only two out of 35 residential properties finding buyers. In the April auction, four out of 38 residential freehold properties were sold. Despite various attempts, CHB continues to struggle with poor response and a lack of interest from buyers, raising concerns about the effectiveness of its auction strategies and the overall market conditions for property transactions in the region.

Next (Aamor Inox Limited acquires Rs 87.5 crore homestead in South Delhi)

CHB's efforts to boost auction sales fall short despite price reductions

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