The Canary: Hong Kong Waterfront Property Sale Flops

hong kong city skyline china

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.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at