Fears of a property bubble in Hong Kong were reignited after Sun Hung Kai Properties paid $434 million for a 130,000 square-foot site in a government land auction. An earlier forecast had predicted the plot would sell for $362 million. "Hong Kong property buyers have been in a prolonged low-interest-rate environment, and now they're behaving like drunken drivers on the road -- they don't think about consequences," says Nicole Wong, a property analyst with CLSA Asia-Pacific Markets.

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