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.
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.
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 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.
Nan Fung Development Ltd. and Wharf (Holdings) Ltd. bid HK$10.4 billion ($1.34 billion) for a site in Hong Kong, falling short of some surveyors’ estimates and sending property stocks to the biggest drop in almost two weeks.