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Developers buy gov't land cheap in auction
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2007-05-10 11:03:00 |
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One of Hong Kong's largest property companies, Sino Land Co, and three other developers on Tuesday bought at an auction a residential site in the city's northwest district for HK$4 billion, lower than the expected price.
Real estate analysts had forecast the winning price would be HK$4.47, 11 percent higher than the final bid. They ascribed the lower-than-expected deal to Hong Kong's bleak real estate market, the worst in Asia last year.
The government land auction was the first in the 2007-2008 financial year. The winning price was 53 percent higher than the HK$2.61 billion minimum bid.
Sino Land Co will own a 45 percent stake in the project, with privately held Nan Fung Development Ltd taking 25 percent and Chinese Estates Holdings Ltd and K Wah International Holdings Ltd each holding 15 percent.
The site is located in West Kowloon and has a total area of 8,060 square meters. Analysts said it is not a high-end site because of its inconvenient traffic and long way from the harbor.
Four residential sites have been slotted for auction this year. The government will sell two sites in Tuen Mun district on May 29. The SAR government is one of the city's largest suppliers of unoccupied land for developers.
The government land auction triggered a big drop in the stock market, especially shares in property companies. The Hang Seng property sub-index fell 1.5 percent, a record low.
It's almost a pattern, said analysts, as shares fall dramatically after government land auctions.(Lillian Liu/China Daily)
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Chinese (ÖÐÎÄ°æ)
