Chandigarh Housing Board slashes reserve prices of commercial units by 10%

Chandigarh, February 7

Having failed to draw buyers, the Chandigarh Housing Board (CHB) has reduced the reserve prices of commercial properties on a leasehold basis by 10 per cent.

Yashpal Garg, Chief Executive Officer, CHB, said the reserve prices of 90 commercial units on a leasehold basis and some residential units on a freehold basis had been reduced by around 10% in comparison to the last e-tender.

Residential (freehold) 45

Commercial (leasehold) 92

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Bidding Feb 8 to Mar 7

Tepid response to previous auctions

Jan 24: 2 buyers for 91 commercial properties

Dec 20: Only 1 buyer for 92 commercial units

Nov 9: Only three of 95 commercial units find takers

Oct 11: Only 1 out of 96 commercial units auctioned

Properties sold by board*

Units 275

Amount Rs 185.33 cr

(*From April 2021 to Dec 2022)

He said they had invited e-bids for 137 properties, including 45 residential units on a freehold basis, and 92 commercial units on a leasehold basis. The bids could be submitted from 10 am on February 8 up to 10 am on March 7 and the bids would be opened on March 7 itself from 10.15 am onwards.

Some of the commercial units on a leasehold basis and residential units on a freehold basis had been included for the first time in the e-tender, he said. Also, six porta cabins (commercial units) at Maloya on a monthly rental basis had been included in the e-tender with reserve monthly rental of Rs 20,000 each.

In the previous auction held on January 24, the board could find only two buyers for 91 commercial leasehold properties. In its e-auction held on December 20 last year, the CHB could sell only one of the 92 commercial units on a leasehold basis, and 25 of the 74 residential units on a freehold basis.

Similarly, on November 9 last year, the CHB could sell only three of the 95 commercial units on a leasehold basis and nine of the 58 residential units on a freehold basis. On October 11, the CHB had sold only one out of 96 commercial units on a leasehold basis and 27 out of 83 residential units on a freehold basis.

The CEO said from April 2021 to December 2022, the board had sold 275 units, including 200 residential and 10 commercial units on a freehold basis, 16 residential units and 49 commercial units on a leasehold basis, and netted a total of Rs 185.33 crore. With reduction in reserve prices, they hoped to elicit good response this time, he added.