No-show trend continues in land lease auction

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The Addis Ababa Land Management Bureau who brought 170 plots in five Sub – Cities for the 27th land lease auction reported that 32 first winners of the auction did not come in to the office to pay the 20 percent down payment. As a result the second round winners were called by the bureau. As has become all common, One Plus Electronics which offered 207,556 birr per square meter in Addis Ketema to purchase 1,380 square meters did not show up to put their money down and Werata International Business who offered 84,750 birr for the same plot was given the opportunity to lease the plot but at the price that One Plus previously offered.
The auction which announced the winner four weeks ago sold 138 places to the first winners and the additional places are expected to be sold for the second winners after they make a down payment.
Of the six pieces of land offered in Addis Ketema Sub -City only three showed up to fulfill their agreement. Two of those who did not, included, WAJJ trading who offered 121,000 birr for one square meter and ABH Service who offered 21,156 birr for one square meter.
According to the Addis Ababa Land Management Bureau’s regulations if the winner of the bid does not come in to sign their contract and make a down payment then the holder of the second place offer gets a chance to purchase the land but at the price offered by the first winner. If, after 10 days they do not sign a contract the land is sent back to a land bank and re-auctioned.
From the 105 plots bole brought 14 winners who did not come in by the specified time while four winners in Kolfe, 12 in Akaki and one in Yeka Sub city were all no shows.
Last fiscal year, during the auction over 1,000 plots were directed to the land bank when the first and second winner failed to sign an agreement.
Land experts said that people who place high bids often are hoping to obtain a bank loan so when they are denied they are not able to come up with the down payment but often they are trying to prevent someone else from coming and snatching business from them in the area so they offer a very high price knowing full well that they have no intention of paying it simply to prevent a competitor from getting the land.
They suggested that the city administration increase the CPO during the land lease auction tender.