One of Hong Kong’s biggest sales of residential land this year added to the picture of a worsening home market.
China Overseas Land & Investment Ltd. won the site in Kai Tak with a bid of $1,726 per square foot of floor area. That’s 13 percent less than Goldin Group paid last month for a nearby parcel.
“The number of bids drawn this time was small, and that has to do with the current market situation,” said James Cheung, a senior associate director at Centaline Surveyors Ltd.
Hong Kong’s home prices are sliding and land sales have had a rough year after a record-breaking 2017.
Goldman Sachs Group forecasts a 15 to 20 percent decline in property prices over two years as interest rates in the city rise in tandem with the US.