THE poor land auction results will have a psychological effect on home-buyers but the impact may be limited, according to property agents.
They said the prices of residential properties in the northwest of the New Territories were already among the hardest hit in the recent market correction.
It was not surprising that the auction of the sites in Fanling and Yuen Long fetched lower prices amid the prevailing negative sentiment.
Jeff Law Kwok-on, senior manager for the Kowloon area at Midland Realty, said yesterday's land auction reflected the recently dampened residential value.
He said residential prices in the Lu Wo Hui area, where the Fanling site is located, had dropped by more than 15 per cent since April.
Therefore, he said, the auction price of the Fanling site was still at a reasonable level.
Kenneth Cheung, director of CF & Associates, said the auction result would affect market sentiment further.