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Lahore Property News : Labour Colony Defence Road Lahore Flats Balloting on April 26, 2012
Lahore : 25-4-2012 is the last day for submitting application for workers flats in defence road Lahore.Balloting of flats allotment will be held on April 26, 2012 (26-4-2012). Punjab Labour Minister Mr. Ihsan-ud-din Qureshi will hold the balloting process with Mr. Abdul Ghafoor Punjab food minister at 90, Shahrah e Quaid i Azam Raod (The Mall Road) Lahore.
Approval of unexpectedly low bids by the cash-strapped Capital Development Authority Islamabad (CDA) for commercial plots in prime areas has raised many eyebrows, and real estate experts even see some ‘underhand’ deals between pre-qualified bidders and civic authority’s bosses.
Although some courageous CDA officials dared to challenge the low bidding and managed to get the auction of three plots out of four cancelled, bid for only plot in Diplomatic Enclave was approved at far lower than the market price.
One of the bidders on condition of anonymity said he was asked to pay Rs300 million commission for a commercial plot in Blue Area.
“Some middlemen contacted me and offered me a plot on much less price, but after paying the amount,” he revealed.
Instead of holding open bidding, the CDA, for the first time pre-qualified some 18 interested bidders for the auction.
The real estate experts were of the view that much higher bids would have been offered, had CDA held open auction.
Some of the bidders raised objections over reserve price of the plots set by the authority and called it “low” to favour ‘some’ bidders.
According to the CDA rules, the highest bid of last plots’ auction in same area is declared as reserve price for the next one.
However, the civic body’s member planning Aziz Qureshi termed the auction ‘transparent’ and successful.
He was of the view that the reserve price was set keeping in view the market condition. “You can’t compare price of plots in 2005 and 2006 with the present real estate rates because at that time the market had reached record high,” he said.
“It is not necessary that we should set asking price of any plot from the price or bid given in the last auction because the present
real estate market has been hit by an unprecedented recession and one should not expect that in the current scenario we will fetch same amount by auctioning a plot at the price received in the last auction,” the CDA member said.
The plot in Diplomatic Enclave measuring 7708.32 sq yard was auctioned at Rs1.04 billion.
Another plot in Blue Area measuring 4,888 sq yard was sold at Rs1.275 billion and two more plots in Blue Area extension measuring 2666.67 sq yard each were auctioned at Rs669 million each.
It was observed during the auction that not more than three bids were offered for all four plots auction on April 4. The attitude of bidders was quite lethargic as they did not go for a neck-to-neck or tough competition.
“I observed that the market price of a plot in Diplomatic Enclave was Rs350,000 per sq yard to Rs400,000 per sq yard but it was auctioned at Rs135,000 per sq yard,” said a builder Ch Anwar.
Similarly plots of Blue Area were auctioned at unrealistic price that was far lower than the market price causing huge loss to the national exchequer.
The CDA wanted to auction three more commercial plots including that of Margalla Towers, the ill-fated and the first high rise apartment building of Islamabad that was partially collapsed during October 8, 2005 earthquake killing 72 of its residents.
The reason behind the cancellation of the auction was bidders reluctance to make deal with the CDA’s lords.
Another real estate expert Ch Munir said the CDA should have auctioned its plots through open bidding.
It is common practice that the CDA sets reserve price of any plot in auction at which a plot had been sold in the same location in the last auction. But that practice was ignored in this case, as the reserve price was much lower.
According to the CDA’s chairman, Farkhand Iqbal, the CDA has planned to auction most of the plots in extension of Blue Area that starts from PIMS Hospital and goes to Sector F-10.
It is feared that if once any unrealistic and low price of plots in most expensive Blue Area (in terms of price of land) is set, the entire extension of the commercial centre will be sold on cheaper rates that will cause billions of rupees loss to the national exchequer.
On the other hand the starved CDA in dire need of money to meet its non-development and development expenditure.
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