A muted response to the latest e-auction of residential freehold sites has pushed the UT administration to consider lowering reserve prices, after only two of the 10 properties on offer found buyers. The extent of the proposed reduction was not immediately known.
Event Context
The auction, conducted by the estate office on June 29, saw bids for just two sites. A 250-sq-yard plot in Sector 15-B was sold for ₹8.33 crore against a reserve price of ₹8.23 crore, reflecting a marginal increase of 1.21%. Another 500-sq-yard plot in Sector 21 fetched ₹18.88 crore, about 14.25% above its reserve price of ₹16.52 crore.
In total, the two sites generated ₹27.21 crore—around ₹2.45 crore above their combined reserve price. However, the remaining eight properties failed to attract any bidders and will now be put up for re-auction.
Price mismatch hits participation
Officials and market observers attributed the poor response largely to steep reserve prices that appear out of sync with prevailing market conditions. The base rates ranged from ₹3.30 crore for 100-sq-yard plots to over ₹16.5 crore for 500-sq-yard sites. Mid-sized plots of around 198 sq yards were priced at approximately ₹6.54 crore, while 250-sq-yard plots were listed above ₹8.23 crore.
Such pricing significantly narrowed the pool of potential buyers, said a local property consultant, Kamal Gupta.
Several previous auctions in the tricity have seen a large number of properties remain unsold, triggering repeated re-auctions.
The estate office has identified around 1,200 properties as “resumed” in its current records, officials said, adding that a verification exercise is underway to correct discrepancies before the list is finalised. Resumption refers to the process through which the administration takes back possession of properties due to non-payment of dues, misuse or breach of allotment conditions.
“After disposing of all objections, the final list of resumed properties will be notified. Possession proceedings will then be initiated for sites that remain under resumption,” the official added.
Team Analysis
A total of 10 residential freehold sites across sectors 15-B, 20, 21, 23, 27-D, 30-A, 37-A and 44-B were offered in the latest e-auction, with plot sizes ranging from 100-sq yards to over 500-sq yards.
1,200 ‘resumed’ properties
source
Now, sources in the administration said a pricing recalibration is under consideration, with a proposal to bring reserve prices closer to the collector rate—the government-notified benchmark for property valuation. “The response has again highlighted that current reserve prices may be on the higher side. Aligning them with collector rates is being examined to improve participation and ensure successful auctions,” a senior official said.
According to officials, several entries in the existing database may be inaccurate or outdated. “We are correcting the wrong entries, and then we will place the revised list in the public domain for inviting objections,” a senior officer said.
