MOHALI: Auction of the Greater Mohali Area Development Authority (GMADA) on Friday once again turned out to be a flop show as there was not even a single bidder for residential plots and only 12 commercial sites found buyers, including a primary school, which went for Rs 5 crore against the reserve price of Rs 3.52 crore.
The much-hyped real estate failed another test as the open auction of total of 32 sites drew a tepid response. However, GMADA got Rs 22.22 crore.
Out of seven booths in various locations of the town, six were sold. A Sector 67 booth drew the highest amount of Rs 90 lakh against the reserve price of Rs 70.80 lakh. Out of ten SCOs (shop-cum-offices), only three attained buyers. Two-single storey SCOs were sold in sectors 84 and 94. The hopes of Mohali to get a cinema theatre too vanished as there were no takers for the site, the reserve price of which was kept at Rs 15 crore.
Property expert Guranchal Singh, a Chandigarh-based dealer, said, "There is already a slump in the real estate industry. Property rates were high for three years and now they are declining, especially due to the very high interest rates on home loans. The second reason is the slow growth of economy. Now, the condition is such that dealers are offering to sell their property, but there are no buyers." He suggested that reserve prices should be kept low to attract bidders.
J P Singh, president of a traders' association and a property dealer in Mohali, too echoed similar views. "The reserve price has been kept very high, the primary reason behind buyers staying away."
A GMADA official said, "The reserve price is decided as per criteria. We are not personally responsible for deciding the reserve price. We are satisfied with the overall result."