Hong Kong’s government sold a site at a land auction today to Nan Fung Development Ltd. for almost a third less than surveyors’ estimates as government measures to curb property speculation cool demand.
Hong Kong’s government announced its first property tax targeted at overseas buyers, stepping up efforts to cool home prices as U.S. monetary easing and record- low interest rates raise the risk of a bubble.
An office property in Hong Kong’s Central business district sold for a record HK$25,581 ($3,300) per square foot as vacancies drop in the world’s second-most expensive market, according to Knight Frank LLP and Savills Plc.
Hong Kong will tighten mortgage lending rules and increase the supply of land as the government intensifies a campaign to suppress what Financial Secretary John Tsang called a “rare” gain in home prices.
Cheung Kong Holdings Ltd., the developer controlled by Asia’s richest man, is canceling the sale of HK$1.4 billion ($180 million) of hotel rooms after Hong Kong’s securities regulator began a probe into the transactions.
Hong Kong’s planned sale of nine residential sites in the second quarter signals the government will use more regular land auctions to help curb a two-year surge in housing prices, Credit Suisse Group AG said.
Cheung Kong (Holdings) Ltd., which sold the most homes in Hong Kong in the first half, may lead developers’ bids at a government land auction as it seeks to replenish reserves after a pullback in home prices.
Henderson Land Development Co. , controlled by billionaire Lee Shau-kee , will probably report lower first-half profit tomorrow after a HK$734 million ($94 million) charge from 20 failed luxury apartment sales.