The residential land auction market in Hong Kong: Market share and profitability

This paper examines the relationship between market concentration andprofitability in the residential land auction market in Hong Kong. In the land auction market, competition is keen and the land acquired is arguably expensive, with the market dominated by a few companies. This paper finds that the developers tend to locate themselves in a suitable market position or strategic domains, within which they sustain competitiveness by increasing their market share. Evidence suggests that a developer would adopt the competitive strategy which adjusts its positioning in the best use of its abilities.