Strong response to the year’s first land auction has boosted confidence in Hong Kong’s real estate market.

Several deals immediately after Wednesday’s sale of the 20,470 sq ft Hung Hom plot represented gains in prices.

For example, a unit at Harbourfront Landmark in the same district sold for HK$29.18 million, an increase of four percent from its previous asking price.

“The auctioned site sold for 70 percent over the starting bid. This boosted home buyers’ confidence, giving us a benchmark for the local market,” noted Carven Yan, a Midland Realty agent in Hung Hom.

With the number of flat viewings climbing 20 percent, home owners in the area generally increased their asking price by up to seven percent.

Meanwhile, projects located in other areas have also benefited.

Over the past two days, Cheung Kong Holdings sold 20 flats at its Uptown project in Yuen Long. A Yuen Long agent said home buyers now have higher expectations of prices increasing.

After selling 28 flats on 28 April, Sino Land released the final 18 flats in its 96-unit Maison Rose project in Cheung Sha Wan. The project was first launched in the market on 21 April.

Meanwhile, Emperor International plans to sell another six units at Harbour One in Sai Wan in order to draw more mainland home buyers during the Golden Week holidays beginning on 30 April.

With sizes ranging between 1,591 and 1,729 sq ft, the units are priced at HK$19,000 psf.

The developer is also planning to release another four units at Java 98 in North Point and increase their prices by five percent.