Hong Kong residential plot sells for higher price than forecast

Goldin Financial Holdings

02/03/2016 10:50

HONG KONG, March 2 (Reuters) - A Hong Kong government land 
sale of a prime residential plot in Kowloon was sold at a price 
higher than analysts had expected, easing concerns about a 
deeper downturn in the property market as Hong Kong's economic 
growth slows. 
    The sale comes after a different residential plot sold for 
less than expected last month and two other government tenders 
were recently cancelled.  
    The plot, in the Kowloon neighbourhood of Ho Man Tin, sold 
for HK$6.4 million ($823,204) to a company owned by Goldin 
Financial Holdings Ltd  0530.HK . Three property consultants 
surveyed by Reuters had expected it to sell for between HK$5.86 
billion and HK$5.9 billion.    
    Secretary for Development Paul Chan said last week that the 
government was prepared to sell into a falling market and did 
not have a policy requiring it to obtain high land premiums. 
 urn:newsml:reuters.com:*:nL2N1640K3      
    Developers have been reporting sharp profit declines and 
scaling back forecasts, and analysts are expecting a 10 percent 
to 15 percent drop in home prices in Hong Kong this year.    
    There were 13 tenders for the Ho Man Tin site, which is 
located on Sheung Shing Street. It was awarded to Goldin's Gold 
Topmont Ltd. 
    The site has an area of 9,074 square metres and is a 50-year 
land grant. 
    ($1 = 7.7745 Hong Kong dollars) 
 
 (Reporting by Joy Leung and Clare Baldwin; Editing by 
Jacqueline Wong) 
 ((Clare.Baldwin@thomsonreuters.com; + 852 2843 6571; Reuters 
Messaging: clare.baldwin.thomsonreuters@reuters.net)) 
 
Keywords: HONG KONG LAND/TENDER