Nan Fung Development also withdrew after a bid of HK billion. Bidding for the second site, Tai Po Town Lot 201, was slightly more aggressive.
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BRENDA FOSTER, PRESIDENT OF THE AMERICAN CHAMBER OF COMMERCE IN SHANGHAI; "An Update of the Business Climate in China" to the Hong Kong China Hawaii Chamber of Commerce (HKCHcc) at the Pacific Club 2/14/2008 The froth is coming off Hong Kong's property market, with bidding at the biggest government land auction in two years failing to reach the high prices forecast by analysts.
Two residential sites on the Tai Po waterfront were sold yesterday at the low end of market expectations, a signal that developers believe property prices are close to their peak.
Average residential property prices in Hong Kong have risen 28 per cent this year, according to property benchmark Centa-City Index, raising fears of a property bubble.
Sino Land acquired both sites in the auction, one for HK$5.15 billion and the other for HK$5.25 billion.
The second site was bought jointly with K Wah International, which owns a 15 per cent stake.The total land price of HK.4 billion has been called a perfect Christmas present for Sino Land, being 16 per cent less than the most bullish expectation of HK.4 billion.It was the second-biggest government land auction is terms of land size and lump sum.The Hang Seng Index fell 36.78 points, or 0.17 per cent, to 21,739.39 after the auction, following gains of as much as 222 points in the morning.Sino Land already has a strong presence in the Tai Po area.A consortium led by Sino Land snapped up three other sites in the area with K Wah International, Nan Fung Development and USI Holdings in 2007.