Auction interest seen low

Higher interest rates and slumping stock prices are expected to undermine interest at today's auction of two residential sites in the New Territories.

Government auctioneers are likely to open the sales at lower prices to attract bidders.

Analysts revised their forecasts downwards on the sale prices by 10 per cent or more in view of the interest rate rise's adverse impact on the property market.

A price tag of $430 million to $500 million was put on the larger site - a 41,710-square-foot commercial-residential lot in Tuen Mun.

The site has a total floor area of up to 260,000 sq ft.

The other lot, a 21,959 sq ft residential site in Yuen Long, may sell for $47 million to $50 million. It has a potential floor area of 21,959 sq ft.