The world’s biggest developer, Sun Hung Kai Properties Ltd banged the first land auction of the year in Hong Kong, with a bid that exceeded the expectations of many analysts. The group calculated sales of 900 homes in the weekend as demand for the property sores.
The shares minted 2 percent hike as soon as the group paid HK$3.37 billion for the land in the eastern Tseung Kwan O district. Further moving towards a high note the company raised HK$4.2 billion in the apartment sale of the weekend that called for 120,000 prospective buyers amongst the 7 million populations in the city.
According to the CEO, of the Hong Kong Monetary Authority the city might face a risk emerging out of the liquidity in its asset markets. Further the land auction and the sale spanned a speculation which could lead to a bubble of risk that could burst any time in Hong Kong’s housing market, as the home prices soaring a 29 percent in 2009.
Now the people are expecting that the year 2010 will not be a easy trailing in the markets as compared to the last years sturdy growth but this auction has boosted the moral of many, hence the outcome might turn out positive for the Hong Kong property market.
Hong Kong is trying to bring the comfort level in land supply and new developers that may help bringing the home prices at a balanced level by 20 percent this year as Sun Hung Kai has paid a handsome price for the site.
According to a survey compiled by real-estate agents Knight Frank LLP Hong, Kong had the world’s fastest-growing housing market.
The government report recorded the number of private homes completed last year in Hong Kong dipped to a 18 percent to 7,200 units.