Small Changes In The Land Auction Process Announced....

Uber-wealthy property tycoons have pushed for and received a small change in the land auction process in which land is released by the Hong Kong government for development.

Starting immediately, any developer's offer of at least 80 percent of the government's minimum price will be enough to trigger an auction for land on the ``application list.''

However, a bid that meets or exceeds the minimum will be required to win the land at auction. And if neither is received, the government will not reveal the minimum price.

Until now, the government would hold an auction only if it received a bid that matched or surpassed its bottom-line price, based on estimates by private-sector assessors.

Since a new list of available sites was published in March, developers have failed to trigger even a single auction off the list.

If the tycoons wanted it, its doubtful if its a change for the better for the people of Hong Kong.

It amazes me how expensive the price of accommodation here is. There are all kinds of reasons why it should attract a premium; high density of people, relative high incomes, developed financial sector, etc. But the level of the premium is sometime mind numbing.

Additionally, a square foot of property in Hong Kong is not a foot as we know it. As I learned a long time ago in school, 12 inches by 12 inches is 144 square inches or a square foot, but the calculus in the Hong Kong lexicon of measurements is more like 10 inches by 10 inches giving around 100 square inches per square foot. The property tycoons here even cheat the people on that count!