TOMORROW'S auction of three lots of land, which is expected to generate between $1.3 billion and $1.5 billion for the Government, is seen as the latest gauge of market confidence in the territory's real estate market.
The auction comes just after last week's decision by the big banks to lift interest rates by 50 basis points and is only the second land sale since the Government took action to curb property prices on June 8.
A 164,151-square-foot residential site in Tai Po will be the focus of attention.
It is expected that the auction results will act as a barometer for the capital value of luxury houses in the area and give an indication of market sentiment in the home market throughout the territory.
The site, which is zoned for low density residential development with a potential floor area of 271,576 sq ft, is located next to a site bought by Sino Land for a record price of $2.14 billion - or an accommodation value of $4,480 per sq ft - in early March, when the property market was strong.
However, the uncertain market sentiment over the past few months has led property analysts to make conservative forecasts.
The lowest projection is $968 million, representing an accommodation value of $3,564 per sq ft - far below the record of $4,480 per sq ft achieved by Sino Land five months ago.
