Developers remain optimistic about rising property prices despite the government's measures to cool the market.
This was shown in the results of government land auctions held after the government tightened mortgage lending and resale rules and released more sites for auction.
Less than a week after the measures were announced, Cheung Kong (Holdings), the city's second-biggest developer, bought two sites at an August 17 auction for HK$7.61 billion. The price was at least 20 per cent higher than the market forecast.
The auction for the two sites - one in Ho Man Tin and another in Hung Hom - had been expected to be a downbeat affair.
But analysts said the sales showed that the big developers, which have a tight grip on the market, expect prices to keep rising. On September 1, a luxury residential site in Kowloon topped records at a land auction. Kerry Properties snapped up the site at 1 Ede Road in Kowloon Tong for HK$1.28 billion, or HK$16,587 per sq ft. This was 95 per cent higher than the opening bid of HK$659 million.