[ET Net News Agency, 18 October 2018] A land tender of luxury residential land at
Mansfield Road on The Peak has been withdrawn, as the five tendered premiums did not meet
the government's reserve price.
HSBC Global Research said this is the fourth cancellation over the past few years. It
believes this is not a reflection of housing market sentiment nor that developers are
cautious in their market outlook.
Rather, the research house attributed it to: (1) an absence of mainland Chinese
developers in the bidding; (2) the impact of the vacant residential property tax on luxury
projects; and (3) the availability of several quality land parcels for sale over the next
few months.
HSBC expects land prices to soften in the next few months, which should benefit
developers and lead to a better margin outlook. This will be primarily driven by less
intense competition from Chinese developers. (KL)