Developers are turning cautious says Leung

Hong Kong's developers have become cautious in acquiring land as evidenced by a number of failed government land sales recently, according to Stewart Leung Chi-kin, chairman of the Real Estate Developers Association.

Leung, who also chairs Wheelock Properties, cited the example of the withdrawn tender of a site in Stanley earlier this year in which Wheelock participated, in an interview with local media.

He said the government had set a high reserve price for the site due to its prime location in a luxury residential area but the site's proximity to public housing and other factors had made it less attractive for developers to pay the minimum price.

Leung said that authorities have agreed to consider raising the plot ratio of private housing developments under the land sharing pilot scheme make it attractive to home builders.

Commenting on the government's initiative to boost the night economy, Leung expected it to have a limited impact on the economy overall. He said domestic demand has remained weak in the wake of the population exodus over the past few years.

Meanwhile, in the primary market, developers Road King Infrastructure (1098) and Shenzhen Investment (0604) released the second batch of 70 flats at their project Mori in Tuen Mun, for an average price of HK$11,478 per square foot, about same price as the first batch after taking different floor levels and views into consideration.

The homes of 291 to 700 sq ft are priced between HK$3.28 million and HK$8.5 million after discounts or HK$9,941 to HK$12,711 per sq ft.

The first batch was already heavily oversubscribed.

In Kowloon City, K&K Property said it will unveil today the first price list of 30 units at Sutton and will keep at least 40 percent of the 92-unit project for rental.