Withdrawal of Tin Shui Wai tender dims market outlook
SFC's proposed relaxation of investment rules on reits adds further pressure on home prices
Many people turn to fortune-telling books at the beginning of the year for insight on the year ahead.
But if you want hints on what this year will bring in the property market, I think a more reliable reading would be based on the latest actions of developers and the government.
The closing two weeks ago of the tender for MTR's residential project at the Tin Wing Light Rail Station may be one of the latest indications of developers' views on the property market.
The railway operator has had to withdraw the tender again as none of the offers could meet its minimum requirement.
Although it has scrapped the requirement in the original tender that the winning bidder would have to pay HK$400 million for site formation works, the revised tender attracted only three developers.
Surveyors believe that was because two sites in the area remained available for sale in future. But I think the main reason was the site's location.
Property prices in Tin Shui Wai have lagged those in other districts. If sentiment remained good and the property market was in its up cycle, developers might still have been interested in the site. But if the market has entered its down cycle, buyers will have to be prepared for prices to drop more steeply in the area.