Kowloon Development Co's (KDC) sale of a retail property in Lam Tin for $300 million has fallen through with the proposed buyer forfeiting a $60 million deposit. Analysts said the deal's collapse was the latest indication developers were finding it increasingly difficult to secure financing from banks. A KDC official said the buyer had not paid the balance for the purchase of the 28,907 square foot Sceneway Garden due last Saturday. The company declined to identify the buyer. KDC bought the space from Yaohan Hongkong Corp for $52.75 million in 1995. It agreed to sell the property to the unidentified buyer last year. 'We have been trying to contact the buyer since last Saturday but there is no response so far,' the official said. 'The company is now arranging legal proceedings to sue the purchaser for loss and damages.' The KDC official said the deal's termination would have no impact on the financial position of the company as it originally planned to keep the property as a long-term investment. 'The board of directors agreed to sell the property because we received an attractive offer.' She said the company had planned to use the proceeds from the sale for further property acquisitions. Earlier, Xin Hua Estates defaulted on its $1.72 billion purchase of an office building in Wan Chai. Defaults were also reported in the mass and luxury residential markets. Analysts said banks' tightened credit policy was partly responsible for the defaults as buyers could not secure the funds to complete purchases. An analyst said there was a fear of further declines in retail property prices.