THE value of a property can almost double in the space of a few months at the hands of speculators before it is ready for use, according to a leading property agent.
After a unit has been sold, often with the property complex only a third completed, it can change hands six or seven times before an occupation permit is issued, said Charles Wheatman of Jones Lang Wootton.
''We have never seen such dramatic increases in prices in Hong Kong. The late 1970s was period of strong growth but not like this,'' he said.
Over the past 12 months, the property market has been forced into a price spiral.
It begins when the Government announces its land sales programme. Developers look at the site and check on building restrictions and what extra facilities must be built. These can range from car parks to sporting and education facilities.
The price is based on projected property values and earnings potential, but due to the shortage of land and overwhelming demand the public auction process has pushed prices up sharply.