P. M. BRIEFING : Hong Kong Values Fall Over Unrest
The first government land sale since China’s crackdown on dissent brought about one-third less than the estimates before the unrest, reflecting the capitalist colony’s concern over its future when it reverts to Chinese rule, officials and analysts said today.
The result of the closely watched sale reinforced speculation that confidence in the future of the British colony, which is due to be returned to China in 1997, was severely undermined by Beijing’s actions.
Only five companies submitted sealed bids Friday for a 92,000-square-foot site near the U.S. Consulate, the last prime undeveloped commercial site in Hong Kong’s central business district--an unusually small number for such an important parcel of land.
Bob Pope, acting director of building and lands, announced today the site was sold to Hong Kong’s Great Eagle Co. for the equivalent of $346 million--more than $160 million less than the generally accepted minimum of $512 million for the plot set before the June 4 quelling of pro-democracy demonstrators in Beijing.
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