Just six of 128 Chandigarh Housing Board units find buyers

The recent e-auction of CHB residential and commercial properties resulted in low sales, with only six properties out of 128 up for auction being sold. The revenue generated from the sale of these properties was Rs 3.84 crore, which is slightly higher than the reserve price of Rs 3.70 crore.

Out of the 38 residential freehold properties, only four were sold, which generated a revenue of Rs 3.16 crore. The sale of these properties was a mixed bag, with some properties selling above the reserve price, while others sold below it. For example, a two-bedroom apartment in Sector 51-A was sold for Rs 98.10 lakh, which is higher than the reserve price of Rs 92.78 lakh. Another two-bedroom apartment in the same sector was sold for Rs 98 lakh, which is slightly lower than the reserve price of Rs 95.3 lakh.

The commercial properties available on a leasehold basis were even less popular, with only two properties being sold out of the 90 that were up for auction. The CHB earned Rs 68 lakh from the sale of these properties, which is slightly higher than the reserve price of Rs 63 lakh.

The low sales at the e-auction can be attributed to several factors. Firstly, the ongoing COVID-19 pandemic has had a significant impact on the real estate market, with many buyers opting to hold off on property purchases until the situation stabilizes. Secondly, the current economic slowdown has also affected the real estate sector, as buyers are hesitant to make large investments in uncertain times.

Another reason for the low sales could be the high reserve prices of the properties. While some properties sold above the reserve price, others did not, indicating that the reserve price may have been set too high, deterring potential buyers.

Despite the low sales, the CHB can take some solace in the fact that they managed to earn a revenue slightly higher than the reserve price. However, it is clear that more needs to be done to attract buyers to these properties. One solution could be to lower the reserve prices of the properties to make them more attractive to potential buyers. Another option could be to offer more incentives to buyers, such as flexible payment plans or reduced stamp duty charges.

In conclusion, the e-auction of CHB residential and commercial properties resulted in low sales, with only six out of 128 properties being sold. The revenue generated from the sale of these properties was slightly higher than the reserve price, but more needs to be done to attract buyers to these properties. The current economic slowdown and the ongoing COVID-19 pandemic have had a significant impact on the real estate market, and it is crucial for the CHB to adapt to these changing times to stay competitive in the market.

This story was first published in ET Realty

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Just six of 128 Chandigarh Housing Board units find buyers

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