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APHB Auction Suffers A Major Jolt
Posted by Pradeep Sadanapalli | April 17, 2008 | 437 views
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Loading ...The Andhra Pradesh Housing Board __ seen as a money-spinner for the state government — suffered a major jolt on Wednesday as buyers, notably big-time realtors, shied away from purchasing prime land it put up for sale in Hyderabad.
There was absolutely no response from realtors and buyers for plots in Hyderabad besides a major block of land at Raidurg in Ranga Reddy district. A saving grace, though, was that the 11-acre land in Khammam commanded a good price. As against the upset price of Rs 50 lakh per acre, the Khammam land fetched Rs 75 lakh per acre (a sum of Rs 8.25 crore). A local real estate firm, Pratima Estates, purchased the land in the auction conducted at the APHB office on Wednesday.
Prime plots in Hyderabad, however, had no takers. A 2,185 Sq. yd plot in Malkajgiri village area under Marredpally mandal, that was priced at an attractive Rs 20,000 per Sq. yd, did not attract any bids.
This took the APHB authorities by surprise as the land is situated in the posh Mahendra Hills area where the current market value is said to be around Rs 40,000 per Sq. yd.
Even plots in Gudimalkapur (1680 Sq. yd.), Alwal (3,993 Sq. yd) and Thokatta (1,200 sq. yd.) drew a blank, according to a senior APHB official who supervised the auction process.
A 2,517 sq. yd. plot in the obscure Dommara Pochampally village found a lone bidder who quoted Rs 50 per sq. yd., over the upset price of Rs 3,000. An individual buyer picked up this plot for a sum of Rs 76.76 lakh. Of the five plots on offer in Hyderabad, only this plot could be sold.
What shocked officials most was the absolute “cold response” to the Bay Ridge block of 10.33 acres land at Raidurg in Ranga Reddy district, close to the Outer Ring Road.
The APHB expected more than Rs 200 crore but received no bids for this land, which is said to be ideal for housing ventures or even star hotels.
No big real-estate players showed any interest in the auction. The APHB wants to conduct the auction afresh. There are also indications that the APHB may cut the upset price at least for the Raidurg block.
The APHB vice-chairman and housing commissioner, Mr B. R. Meena, told this correspondent that fresh dates for the auction would be fixed soon. He ruled out the possibility of any reduction in rates. “Why should we,” he asked.
SOURCES:
Deccan Chronicle
Topics: Property Matters, Govt Failures, Real Estate |
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