What does an improved Hong Kong property outlook mean for land sales?

The competition could intensify at tenders for Hong Kong’s residential plots as developers replenish their land banks amid a recovering property market, with the tug of war testing their financial discipline as they bid for parcels at a “noticeable premium”, according to S&P Global Ratings, though some analysts believe that the return of confidence is warranted given robust demand for housing units.The credit-rating agency also forecast a relatively modest residential market recovery, which could potentially limit the pricing strategies of developers as new projects are launched in future.“Rated developers handled Hong Kong’s property downturn deftly by trimming investments and bolstering balance sheets,” S&P said in a report on Wednesday. “Now the question is whether they will throw caution to the wind as demand revives.”