PESSIMISM is expected to overshadow the government auction next week, with developers tipped to bid cautiously for the two plots of Crown land on offer.
Analysts said the industrial-godown site in Kwai Chung could be withdrawn due to market uncertainty and the bleak prospects for that sector.
Some surveyors said the other lot, a residential site in Tai Po, could draw little interest from developers who were cutting prices to unload their properties.
The public auction of the two sites, which will be held on Thursday next week, could net about $350 million to $400 million for the Government.
Analysts said the Government should fix conservative opening prices for the sites as over-pricing could scare bidders off.
William Wong, partner of Brooke Hillier Parker expected the Tai Po residential site to fetch $260 million, representing an average price of $1,973 per square foot.