Bricks and Mortar | Bidding for luxury site may prove to be a let-down
Auction in Island South raises hopes for some, but downward trend in prices looks entrenched
As the market remains weak, property players are desperate for a little good news. Now their eyes are on the coming public auction of a site in a traditionally upmarket residential area in Island South.
On Friday, the government will close the tendering for a 116,897 square foot site at the junction of Shouson Hill Road West and Wong Chuk Hang Path.
Big and medium-sized developers are expected to bid for the site given the limited supply of new flats in high-end districts.
Surveyors and property agents estimate the market value of the site at between HK$2.63 billion and HK$3 billion, which medium-sized developers can afford.
Agents said that some owners of upmarket properties were pinning their hopes on a good price for the site, which could give a shot in the arm to the weakening luxury homes market.
They may be disappointed.
More potential buyers are coming to believe that the downward price trend is confirmed, given the performance of the rental and sales markets, veteran property agents focusing on the luxury housing market said.