Chd residential plot auction indicates speculators' effect

The recent auction, conducted by the estate office here for the residential apartments in the city might have brought cheers to the faces of realtors who are predicting revival in the real estate sector, yet apprehensions have been raised by many indicating speculators’ role in fuelling the prices.

The auction for residential projects raised many eyebrows as it saw a 5 Marla (1 Marla=30.25 sq yards) plot being auctioned for a whopping Rs 1.4 crore and a 1 Kanal (1 Kanal=605 sq yards) plot being auctioned at Rs 4.06 crore.

The auction that was held for 42 residential plots in various dimensions ranging from 1 kanal to 4 Marla house, saw as many as 33 plots being auctioned, but quite a few of the highest bidders in different categories backed out after the auction, indicating a possibility of prices being hiked by speculators.

Although estate officials refused to part with the information of how many highest bidders withdrew after the auction, the realtors maintain that withdrawing by some highest bidders in different categories indicate the auction could have been managed.

Broker officer of RE/ MAX Sanjeev Sharma, which is a real estate franchising network, maintained that the auction was not in proportion to the reality. He added that though there were indications that real estate was on revival mode yet the steep jump in prices did not reflect the real situation. Chandigarh market is mix of end users and speculators with 60 per cent constituting end users and rest speculators. He maintained that demand from end users still focused on middle and lower end side, that suggested speculators calling the shots.

Master Regional Franchisee for RE/MAX in Chandigarh, Mohali and Panchkula region Jarnail Singh Arora maintained the hike in auction prices could lead to sharp increase in prices.

The auction in Chandigarh is always considered to be benchmark by property developers in vicinity area ( Mohali, Panchkula, Zirakpur, Kharar), who accordingly fix the prices for their residential projects in the peripheral areas.