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Saudi real estate firm stops auction
RIYADH - The Saudi Real Estate Company yesterday abruptly stopped its spring real estate auction which had begun on Saturday.
The broker of the auction said the company had stopped the disposal of land and those interested in buying residential blocs should approach the head office of the company.
The rate per metre for residential blocs will be SR620 ($165.3). The rate had exceeded SR1600 ($426.60) for commercial plots at the auction on Saturday. The decision was taken by the company, presumably after it came to know of a five-member cartel formed by real estate proprietors aimed at halting the auction at certain levels. The abrupt cancellation of the auction seems to have aborted their attempt.
A number of landlords, who spoke on condition of anonymity, said the auction had evoked poor response because buyers expected the sale of residential plots of land in pieces although the company had earlier said it would be on the basic of blocs. The sale of commercial plots of land, which was well-attended by buyers, was made in pieces.
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