Agents accused of dishonest tactics

Disputes between flat owners in buildings targeted for redevelopment and agents appointed to secure their sales agreements are expected to increase as developers become more aggressive in seeking to acquire old buildings for redevelopment.

Rising demand for homes and a limited supply of land in prime locations have prompted developers to turn to the acquisition of old buildings for redevelopment in recent years.

But intensifying competition to secure sales agreements from existing owners has led some agents to engage in questionable tactics, according to critics.

Lam Ho-yeung, a member of the Yau Tsim Mong District Council, said he received seven complaints from flat owners at Hing Wong Mansion in Tai Kok Tsui.

The owners objected to receiving an anonymous letter in October that stated that the ground under their building may be at risk of subsiding, causing damage to the foundations once construction on the proposed Guangzhou-Shenzhen-Hong Kong express rail project begins. The letter writer added that this would affect the redevelopment potential of their block and urged owners to sell as soon as possible before construction on the link begins later this month.

A few days later, the flat owners received a letter from Richfield Realty, a listed property agency that focuses on acquiring old buildings to on-sell to developers, proposing the acquisition of their flats. The letter stated that the agency would negotiate acquisition prices with flat owners individually.