uncovering Hong Kong’s secret land grab

Home to 7.5 million people and short on space, Hong Kong has
long been the world’s least affordable housing market. Hundreds
of thousands of residents still live in cramped subdivided
flats, many of them enduring lengthy waits for public housing.

Last year, however, landslides triggered by a record-breaking
downpour exposed how some of the city’s wealthiest living at
Redhill Peninsula had expanded their homes with grand but
unauthorised add-ons – from swimming pools to basements – on
government land at essentially no cost.

Yet the high-profile case is anything but rare, according to a
Post investigation that uncovered suspected unauthorised land
encroachment and structures at three other upmarket estates,
following a wider study by an NGO.

Here the Post presents its findings on how the rich grab land in
space-poor Hong Kong.

Nestled on the lower rises of Kowloon Peak, the 16 houses in
Block B of Flamingo Garden enjoy unobstructed views of Kwun
Tong. Each pricey property costs as much as HK$71.8 million
(US$9.18 million), with floor areas of about 2,496 sq ft.

Most are suspected of having unauthorised structures, including
swimming pools and separate sheds or rooms, with some of them on
a government-owned slope outside their original boundaries.

Among the 12 houses that appear to go beyond their boundaries,
11 are suspected of having structures or extensions on
government land, but foundation depths, structure heights and
lengths cannot be ascertained.

Four houses are suspected of having private pools that are not
listed on the government’s online records.

After a Post inquiry, the government notes it will continue to
take enforcement actions against suspected unauthorised
structures, but stops short of saying whether it has issued any
removal orders. Authorities also confirm they have not granted
any short-term tenancies for additional land, promising further
action if needed.

• Homes with suspected deviations

• Official estate area

• Natural slopes

• Artificial slopes
• Past
  landslides

Some of the houses increased the size of their gardens by at
least double, extending beyond their allowed limits.

Up to 11 out of 16 houses are suspected of having extended
their gardens onto government land without permission.

At least 13 appear to have unauthorised building works.

After a Post inquiry, the government has confirmed 13 flats
occupy government land and 10 homes have unauthorised
structures on their rooftops or in their gardens.

HOUSES SUSPECTED OF HAVING ADDITIONAL STRUCTURES OR EXTENDED
GARDENS

Surveyor Vincent Ho Kui-yip questions the stability of the
steel platforms as they are not resting on a stable
foundation.

Veteran structural engineer Ngai Hok-yan also says the
structures are likely to be unauthorised, with developers most
probably already having maximised the plot ratio – the
development density permitted under planning rules – during
the design stage.

Two building professionals say any additional load is bound to
affect slope stability and the extra concrete structures at
both houses may indicate the presence of basements.

Centaline Surveyors executive director James Cheung King-tat
says some buyers may be willing to pay for a larger living
space but with a discount on the unauthorised area, such as
half of the price per square foot.

For example, if a 3,000 sq ft house is priced at HK$90 million
(US$11.5 million), or HK$30,000 (US$3,836) per square foot, a
1,000 sq ft illegal extension can yield an extra HK$15 million
(US$1.92 million) if the buyer asks for a 50 per cent
discount.

Cheung says the additions can also generate extra rental
income as tenants may pay more for the extended space, given
that they do not bear the legal responsibilities and only have
to move out if there is enforcement action.

Unauthorised building works at the luxury Redhill Peninsula
estate, just below Villa Rosa, sparked the latest land grab
saga.

The day after the record-breaking rains lashed the city on
September 7 and 8, 2023, building authorities were notified of
the landslide at Redhill Peninsula, which exposed unauthorised
works and illegal occupation of government land at four
houses. The government moved to issue removal orders to the
owners.

Since then, authorities found another 70 of the 85 seaside
homes had extended beyond their legal limits, had built
unauthorised structures, or had undertaken both add-ons.

AREA AFFECTED BY THE LANDSLIDE

The estate’s 256 buildings and houses provide a combined 494
flats.

Unauthorised structures add extra load to the government-owned
slope and compromise the safety of buildings and the land
itself.

SEPTEMBER 7 to 8, 2023 | THE DAYS OF THE GREAT RAIN

During the downpour, the city logged its highest hourly
rainfall of 158.1mm since records began in 1884.

The city recorded 26 landslip warnings between 2014 and 2023,
five more than the previous decade, amid rising levels of
rainfall.

Landslide area in the Redhill Peninsula

Experts say the illegal structures at the four seafront
houses, three of which were unlawfully occupying government
land, may have destabilised the soil, which was then further
affected by the rainstorm.

Heavy rainfall and the geology of the area are also believed
to have contributed to the landslide, but authorities are
still investigating the exact causes.

The citywide downpour hit on the night of September 7. The
Observatory first issued its lowest-tier rainstorm warning at
9.25pm and escalated it to the highest level within 100
minutes, eventually lasting for 19 hours until the next
afternoon.

Authorities recorded 75 landslide reports – including the one
in the Redhill Peninsula – as of midday on September 10.

FIX IT OR FACE THE MUSIC

The government has demanded homeowners fix the violations
within 60 days or 150 days, depending on their severity. Those
who fail to comply on time without a reasonable excuse face
prosecution.

Owners of houses No 70, 72, 74 and 76 will also have to foot
the bill of the slope repair works if their illegal structures
are found to have triggered the landslide.

The Buildings Ordinance provides hefty penalties for convictions
of unauthorised construction, with maximum fines of HK$400,000
and jail terms of up to two years.

But Vincent Ho Kui-yip, former president of the Hong Kong
Institute of Surveyors, says parties involved such as
professionals and construction companies are often not easily
linked to any solid evidence as paperwork is kept deliberately
sparse.

Instead, the government is left to issue statutory removal
orders to house owners.

HOW THE PENALTY PROCESS WORKS

The government enforces relevant laws through the Buildings
Department and Lands Department. The former regulates structures
on private land, while the latter is responsible for managing
unleased government land.

But analysts say the government’s leniency and lax law
enforcement are some of the key reasons behind its failure to
eradicate illegal structures.

An analysis by the Post of the Buildings Department data* shows
that criminal prosecutions have been made in at least 81 cases
of unauthorised structures since 2013. Only 14 cases concern
luxury residences, with the rest mainly relating to other
buildings.

*The Buildings Department does not keep an open tally of all
related prosecutions, only publishing more serious cases in
which fines slapped on owners go beyond a certain level.

TOP 5 PENALTIES IN PAST 11 YEARS

A look at the heaviest fines meted out to property owners shows
that many fail to rectify violations.

FINES DWARFED BY RENTAL INCOME

Using the Discovery Bay case as an example, the owner was fined
an amount estimated to be about 17 per cent* of the property’s
annual rental income.

*Based on average monthly rental of HK$78,333 for houses in
Discovery Bay listed on Centaline Property’s website in Jan 2024

PAST SCANDALS AMONG THE POLITICAL CLASS

The problem of illegal structures has persisted over the years,
at times landing high-level officials in hot water.

Henry Tang Ying-yen | Former chief secretary

The discovery of an illegal 2,300 sq ft basement, reportedly
replete with a wine cellar and a Japanese bath, in Henry Tang’s
Kowloon Tong home eventually cost him his election bid for the
city’s top job in 2012.

A scandal erupted in 2018 when the adjoined homes of then
justice secretary Teresa Cheng Yeuk-wah and her husband in Tuen
Mun were found to have 10 illegal extensions.

The added structures, which together added up to 1,800 sq ft,
were estimated to be worth HK$35 million. Cheng has degrees in
law and engineering, and co-wrote a book on construction law.