Hong Kong auctions residential site as government curbs speculation

HONG KONG: Hong Kong received an opening bid of HK$1.05 billion (RM448 million) on Monday, May 24, in an auction for a residential site, the second such sale since the government took steps to curb property speculation.

Hong Kong property prices have soared by about a third since January last year, fuelled by low mortgage interest rates, an influx of foreign capital into Hong Kong's real estate market and tight housing supply.

Two weeks ago, the auction of another site fetched a price that fell short of forecasts, a sign of weaker demand in the territory's previously hot property market.

Analysts predicted a sale price for Monday's auction of HK$1.37 billion. -- Reuters