THE AUCTION of commercial and residential sites by the Greater Mohali Area Development Authority (GMADA) on Thursday received a poor response with just nine out of 31 sites finding takers. The authority failed to auction bigger sites, including two meant for school.
GMADA sold six built-up booths, two plots and one booth at the auction. A plot of 262.2 square yards in Sector 65 was sold for Rs 1.45 crore which was the highest bid. The total reserve price of the sold properties was Rs 3.84 crore and GMADA earned a profit of only around Rs 17.23 lakh as all the sites fetched a total of Rs 4.01 crore.
Sukhjeet Pal Singh, GMADA additional chief administrator (ACA) who oversaw the auction at a community centre in Sector 70, termed it successful and said that the buyers showed interest and the auction concluded as per their expectations.
The authority put under the hammer a total of 31 sites: five residential plots, two school sites, three booths, 13 SCF and eight built-up booths. This time GMADA did not reduce the reserve price of the properties. The buyers were expecting the reduction as the authority had not got a good response in the previous auctions.
Terming the auction below expectations, former chairman of Mohali Property Consultants’ Association (MPCA) Shailander Anand said that they had doubts since the day when GMADA launched the scheme as the reserve prices were very high.
“Only booths and some plots were sold. The bigger sites, including two school sites in IT City, found no takers. There was a need for GMADA to reduce the reserve prices so that buyers could take risk by investing or buying the property. If we talk about the profit, it is around Rs 17 lakh only,” he said.
He said that GMADA fixed the reserve prices of some sites even more than the collector rates in some areas. In the past, the authority could not get buyers for its commercial as well as residential sites. In December and January, GMADA had reduced the reserve prices by up to 20 per cent.
In December last year, GMADA could sell only nine sites out of a total of 32 which were put up for auction. After that auction, GMADA reduced the reserve prices by up to 20 per cent but it again failed to woo buyers when it could sell only three sites out of a total of 23 in an auction held in February. In June, GMADA again held an auction but could sell only nine sites out of 32.