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 businessman Raymond Chiu says he has perfect credit and is prepared to spend about HK$16 million ($2 million) on a 1,000-square-foot apartment in the city’s Mid-Levels residential area. There’s just one catch. The government requires a 50 percent down payment.
A 26-year-old government-built apartment near one of Hong Kong’s busiest shopping areas sold for a record price per square foot, underscoring concerns that home prices in the city are becoming unaffordable.
Hong Kong builders will sell more new homes next year even as government curbs pushed the number of transactions to a six-year low in 2012, according to Midland Holdings Ltd., the city’s biggest publicly traded realtor.
Chu Kin-lan has already shuttered six of 11 offices of her Hong Kong real estate agency, whose Chinese name translates as Precious Prosperity, and let go half of her 70 employees amid the city’s toughest curbs on home buying in its history. The worst pain may be still to come.
Mainland Chinese investors accounted for a smaller percentage of Hong Kong’s new home sales for a second quarter as the nation’s banks tightened lending while local buyers returned to the market, Midland Holdings Ltd. said.