Wheelock & Co., controlled by the family of billionaire Peter Woo, beat 11 rival developers to win a Hong Kong site for residential development as the government speeds up land sales to boost housing supply.
Li Ka-shing , Hong Kong’s richest man, signaled his confidence in the real-estate market by paying more than estimated for two sites, four days after the government tightened loan rules to prevent a possible bubble.
Hong Kong developers may pay HK$8.41 billion ($1.08 billion) for a residential site at a government auction tomorrow, as some analysts cut their estimates after two previous land sales missed forecasts and apartment prices fell in the last two weeks.
Hong Kong’s government may today sell two residential sites to smaller developers that have been priced out by bigger rivals at auctions held to cool a property market that has surged to the highs of a previous peak in 1997.
Hong Kong’s government sold three residential sites above analyst estimates, highlighting developers’ confidence that property curbs haven’t damped demand and the economy expanded in the first quarter.
Sun Hung Kai Properties Ltd., Hong Kong’s biggest developer by value, bought a building site for less than analysts’ estimates, underscoring concerns that rising supply and slowing global growth may crimp home prices.
Hong Kong sold a parcel of land near the China border for a more-than-estimated HK$459 million ($59 million), while developers shunned a more centrally located property with views of a cemetery at an auction yesterday.
Sun Hung Kai Properties Ltd., the world’s biggest developer by market value, won a tender for a residential project atop a Hong Kong subway station with a less- than-estimated HK$11.8 billion ($1.5 billion) bid.
Hong Kong sold a residential site in the city’s northwest at a price lower than surveyors’ estimates, underscoring concerns home prices may drop further amid the government’s pledge to maintain property curbs.
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.