Sun Hung Kai Shines after HK Real Estate Auction
Sun Hung Kai was also in the spotlight over the weekend when about 120,000 people turned up to bid on some 900 apartments in its Yoho Midtown apartment in Yuen Long -- an area about an hour away from Hong Kong's central business district. Prices averaged HK$5,400 ($696) per square foot, according to Business Week, even though the buildings and the planned shopping center are still under construction and won't be finished until the end of the year. Property Week said that about 40 apartments that sold over the weekend were immediately put up for sale again, with prices listed at 20% above their original selling prices. One look at this rather unimpressive housing block should tell you that this buying frenzy just might indicate a bubble.
Mainland Chinese buyers were among the most enthusiastic buyers, helping to push prices higher in this already overheated market. But while the location may not appeal to those doing business in places like the Hong Kong Stock exchange or the grand HSBC tower located far away and across the harbor in Central, it's ideal for those heading across the border to the factories (and copycat handbag shopping mecca) of Shenzhen -- a mere 10 minute commute, not including the lines at passport control.
Other property shares also surged today: Henderson Land, renowned for selling super-high-priced luxury apartments skyrocketed 3.2%, Cheung Kong soared 2.6%, New World Development gained 2.4% and Hang Lung Property added 2.1%.
In Tokyo, electronics companies were among the best performers. Clarion, maker of electronics for the auto industry, climbed 4.3%, Sanyo Electric rose 3.6% and Sony advanced 3.4%. Camera-related shares closed higher: Canon surged 3.9%, Nikon gained 3.6% and Fujifilm added 3%. Semiconductor testing company Advantest Corp. racked up a 3.6% gain.
In China, banks closed lower with China Citic Bank retreating 1.7% and China Construction Bank losing 0.9%. Developers also closed lower: Poly Real Estate sank 1.7% and Gemdale declined 1.5%. While buyers in Hong Kong capped off their Chinese New Year holiday scrambling for a piece of the over-priced action, Chinese may be starting the year of the tiger with their purse strings pulled a little tighter.