Letters | Hong Kong property: education needed to keep mainland Chinese buyers coming

Readers discuss property developers becoming more aggressive in pursuing recompense for cancelled transactions, and the city’s cryptocurrency ambitions

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Potential buyers view a model of an apartment complex at the sales office of CK Asset’s LYOS housing development, in November 2021. Photo: Edmond So

Published: 11:30am, 14 Sep 2024

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As the Hong Kong property market continues to navigate a downward tide, property developers are becoming increasingly aggressive in recouping their losses. CK Asset’s pursuit of the difference in price between what the buyer committed to and what the developer was able to resell the flat for in the case of cancelled transactions related to its #Lyos project in Hung Shui Kiu has sparked surprise and concern among mainland buyers who were previously unaware that developers might do this.

Comments online such as “you can’t beat the capitalists” and “contractual giant, moral dwarf” reflect a growing scepticism about the investment value of Hong Kong property, with some questioning whether the city’s market is still a viable option.

The principle of contractual obligations notwithstanding, the aggressive pursuit of price differences by developers is likely to deter potential buyers, particularly from the mainland, from entering the Hong Kong market. The authorities should step up education efforts and mandate that property agents clearly explain to potential buyers the legal and financial consequences of breaching transaction agreements. By mandating such explanations, the government can help manage expectations and prevent future disputes, fostering a more transparent and equitable property market.

Stanley Ip, Sai Wan Ho

Hong Kong must ensure cryptocurrency gamble pays off

It is ironic that Hong Kong wants to become a cryptocurrency trading hub when such trading is banned in mainland China. Last year, the UK parliament’s Treasury committee concluded that trading in cryptocurrencies is akin to gambling and should be regulated as such.