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1. Henderson cool to hot land auctions

1. Henderson cool to hot land auctions
SANDY LI , SCMP 9 May 2006

Henderson Land Development chairman Lee Shau-kee has warned high prices will dampen the developer's appetite for land.

Henderson was not in a hurry to trigger a government auction considering high reserves. "It is hard to make money at a time when flour is more expensive than the bread," he said.

Under the application-list system, developers can trigger an auction for a site by making a bid equal to at least 80 per cent of the government's reserve price, which it does not disclose.

Given fierce competition, some bidders had even offered Hong Kong 's rail operator landlords as much as 70 per cent profit-shares in flat sales to win development rights, Mr Lee said.

Mr Lee also said increasing difficulty in getting approval for projects had discouraged investment. "There is a trend for developers to increase their investment on the mainland," he said.?