Few buyers: GMADA to hold properties’ auction every three months
Over the past five months, GMADA held e-auctions every 1st to the 10th, but was not able to sell majority of the properties. Any properties that did get sold were mostly outside the MC limits
In view of its monthly e-auctions for various properties repeatedly evoking a tepid response, the Greater Mohali Area Development Authority (GMADA) has now decided to hold the auction only once in every three months.
Over the past five months, GMADA held e-auctions every 1st to the 10th, but was not able to sell majority of the properties. Any properties that did get sold were mostly outside the municipal corporation (MC) limits.
Sanjeev Kumar, estate officer, GMADA said, “With the gap of three months, we expect the market to see some change, and the e-auctions to elicit more response.”
Bhupinder Singh Sabharwal, president, Mohali Property Consultant Association, said the slump in the market was common knowledge. “We have been asking GMADA from the outset not to auction properties every month. How can they expect to sell them so frequently when there is no demand? Besides, the reserve price set by GMADA is much higher compared to that available in the market. It’s no surprise that residents prefer other options in the open market,” he said.
In the auction held on November 14, out of the total 69 sites, only six were sold.
For the past five months, GMADA has been trying to sell 14 booths, 16 residential sites, two hotel sites in IT City, a petrol pump site in Medicity and a nursing home site. There are also 16 residential sites, located in Sectors 56, 59, 60, 61, 63 to 65, 68, 71, 77 to 80 and Eco City-1.
They are sized between 250 and 500 square yards, with reserve prices ranging between Rs 33,000 to Rs 81,000 per square yard. This brings the reserve price of a 500-square yard plot in Sector 70 at Rs 4.4 crore.
The two hotel sites in Sector 66-B near the Airport Road also failed to attract buyers. While one site has an area of around 2 acres, and was on offer for Rs 25.7 crore, the other one, sized 4 acres, had a reserve price of Rs 50.9 crore.