=MARKET BUZZ: SHK Off After Plot Buy; Investors May Not Share Optimism - Bocom
HONG KONG (May 16) -- Sun Hung Kai Properties falls 1.2% to HK$127.50, after developer on Tuesday won a Kai Tak residential site for HK$25.16 billion through public tender; company outbid competitors including CK Asset, Henderson Land and two other consortiums. Nomura says land's accommodation value paid for is “not inexpensive." SHK will need to sell the residential units at 15%-25% higher than recent primary launches in the area, Morgan Stanley says, but adds this is achievable because of site's “prime location.” Bocom International says investors “may not necessarily” share the company’s optimism towards property price upside, especially when further rate hikes may occur in second half of this year; believes investors may shift to developers who secured land bank at lower costs earlier, including Wheelock, Henderson Land and Sino Land. Wheelock up 0.3%, Henderson Land off 0.8% and Sino Land 0.7% lower.
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