Hot Hong Kong Property Auction Misses Pricing Expectations By 20%

Hong Kong

A property sale in Hong Kong just missed pricing surveyor expectations by 20%, even after a new record was broken in the area just recently:

Bloomberg:

Chinachem Group paid HK$2.17 billion ($280 million) for the site in Kowloon Tong, the same district where the developer bought a plot of land in October to set a record price for the Kowloon Peninsula. Today’s price was below the HK$2.7 billion median estimate of seven surveyors Bloomberg News surveyed.

“The site will still draw strong interest from developers, though we probably won’t see another record price because the location isn’t as good as the last parcel sold in the area,” James Cheung, a surveyor at Centaline Property Agency Ltd., the city’s biggest privately held brokerage, said before the auction. “When interest rates are at such low levels, there isn’t much the government can do to stop prices from rising.”

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