A giant Hong Kong property auction just delivered a dose of reality to the city’s soaring property market.
Bloomberg: Sino Land Co. and K Wah International Holdings Ltd. together paid HK$10.4 billion ($1.3 billion) for two waterfront sites in Hong Kong’s New Territories, falling short of estimates for the auction.
“Apart from Sino Land, which owns sites nearby,” no one had an interest in pushing the price, said Conita Hung, head of equity markets at Delta Asia Securities Ltd. in Hong Kong. The two 20,925 square meter (225,000 square foot) plots in the Tai Po district were the largest properties offered at auction since September 2007, according to Lands Department records.
Missing price estimates is a sharp departure from a market where home prices jumped 30% this year alone. Property stocks slipped in Monday trading. Read more here.