Depressed market conditions affect CDA bidding

[Salman]

ISLAMABAD - Depressed market conditions in real estate sector Monday adversely affected the open auction held under the auspicious of the Capital Development Authority (CDA) of some 10 residential plots located in Sector G-10/2.

Though the city managers claimed that buyers’ response was sound under the prevailing market conditions, the previous auction results speak otherwise.

On Monday, plot no.556, measuring 355.55 square yards and located in Sector G-10/2 received the highest bid of Rs 51,000 per square yard. While, during the last auction held on September 10, 2012, plot no. 136-B measuring 233.33 square yards and located in the same sector had fetched a bid of Rs 57,500. Though the aforementioned plots are not of the same size, difference in bids offered is sharply different.

However, on the first day of two-day open auction of residential, commercial, economy flats, and filling stations plots, CDA offered 10 residential plots for bidding. Collectively, 10 plots fetched bids worth Rs 149.82 million, an amount if earned after the final approval of the CDA Board would definitely provide a breathing space to cash-starved civic agency.

Four residential plots each measuring 272.22 square yards and six plots each measuring 355.55 square yards were offered for the bidding by CDA.

The grand auction under the auspices of the CDA begin at Jinnah Convention Centre participated by a large numbers of bidders.

As per auction results, plot no. 556, Sector G-10/2 and measuring 355.55 square yards received the highest bid of Rs 51,000 per square yard, whereas, plot no. 551 of the same size and location got the lowest bid of Rs 42,000 per square yard.

Four consecutive plots including plots no. 552, 553, 554 and 555 each measuring 355.55 square yard received bids worth Rs 44,000, Rs 46,500, Rs 46,000, and Rs 44,500 per square yard respectively.

Similarly, plot no. 537 measuring 272.22 square yards in Sector G-10/2 fetched the bid of Rs 50,000 per square yard. Whereas, plots no. 535, 536 and 538 measuring 272.22 square yard each got the price of Rs 46,500, Rs 46,500 and Rs 49,500 per square yard respectively.

The auction that was held at Jinnah Convention Centre was supervised by CDA Member Finance Azhar Ali Chaudhry, and participated by the members of the auction committee comprising of Member Planning and Design, Syed Mustafain Kazmi, Member Estate, Shaista Sohail, Deputy Director General Finance, Zia-ur-Rehman Toor, Director Estate Management-I, Naveed-ul-Haq, Director Estate Management-II, Muhammad Aslam Chaudhry and Director Public Relations, Ramzan Sajid.

The commercial plots, which will be offered for bidding on Tuesday include Plot No 15 located at Northern Strip of Sector E-11 and measuring 2184 square yards is meant for Filling station. While, plot no 2 and plot no 3 of Sector E-11 each measuring 4833.33 square yards is meant for commercial purposes.

Similarly, plot no 5 and plot no 6 each measuring 2666.3 square yards and located at Blue Area F-8/G-8, plot No B-1 and plot no B-4 each measuring 1333.3 square yards and located at Blue Area F-9/ G-9, plot no 6 and plot no 11 mesuring 1333 square yards and located at D-12 Markaz, plot no. 40-B measuring 7333.3 square yards and located at sector G-8, plot no 10 located at Markaz F-11 and plot no 2 Markaz G-11 and measuring 888.88 square yards will also be offered for bidding on Tuesday for bidding.

The plots offered during the auction and bids received bids would be presented before the CDA board upon the completion of auction process. CDA Board is the final authority to accept or reject the offers.