Hong Kong auctions land at HK10.4b, above forecasts

HONG KONG: Hong Kong auctioned on Wednesday, July 28 a piece of land for HK$10.4 billion (RM4.28 billion), beating forecasts and adding to fears of a property bubble in one of the world's hottest real-estate markets.

The government received an opening bid of HK$8 billion for the site located at Mt Nicholson Road around Hong Kong's famed Victoria Peak in its fourth land auction this year.

A Reuters poll of 10 analysts had expected the site, which they said offered a gross floor area of 325,000 sq ft (30,190 sq m), to sell for HK$9.89 billion.

Hong Kong has been the favourite destination for Chinese property investors as they diversify their investment portfolios due to policy tightening at home. Analysts said a fifth of buyers of Hong Kong's luxury apartments come from China. — Reuters