New Hong Kong residential buildings tend to get burdened with absurd names such as La Serenade or Celestial Peak. However, in the interests of accuracy, developers might try something such as Le Scam or Deception Heights. Henderson Land may have already trademarked these names if its luxury Conduit Road project is any guide. Six months ago, the company claimed to have sold 24 flats at No39, with one duplex attracting a world record HK$439 million.
Now it seems that 20 of these deals have fallen through, assuming they ever existed, including that much-vaunted record holder. The Hong Kong Institute of Surveyors said the revelation had done 'serious damage to the developer's image and integrity', although it's hard to imagine that anyone lauds the city's developers for their honesty. But there is a bigger issue here than Henderson's image, one that should spur urgent government action.
The 39 Conduit Road non-deals, when they were first announced, helped create an atmosphere of hysteria in the property market. As a result of the developer's alleged mendacity, house prices rose in the luxury and mass markets. Many middle-class residents paid more for their homes because of this and many more saw their borrowing costs rise as the government sought to cool the market. If Henderson's deals turn out to be phoney, those who bought at inflated prices during this period of hysteria - or paid more for their mortgages - might consider approaching the developer for compensation. It seems unlikely the Hong Kong Developers Fan Club - I'm sorry, I mean the Hong Kong government - will do this on the people's behalf.
