Henderson reply on luxury deals fails to satisfy

The government is not satisfied with Henderson Land's explanation of why the sales of 24 flats in a luxury Mid-Levels development have not been completed five months after the developer said they were sold.

The Lands Department said it would require Henderson to provide more information about the transactions at 39 Conduit Road as the developer was not sure whether they would ever be completed.

The original request came amid calls by legislators for more transparency regarding flat sales to allay suspicions that developers were embellishing them to push up prices.

Henderson said in October the 24 flats had been sold for a total of HK$3.18 billion.

A five-bedroom duplex in the block was sold for a record HK$439 million, or HK$88,000 per square foot.

In a reply received by the department on Wednesday, the developer said it had entered into a verbal agreement with the 24 buyers to extend the transaction date for two to four months, adding that completion might be further extended.

'Given that the developer had entered into new agreements with the purchasers verbally and could not be definite about whether the transactions could eventually be completed, the Lands Department issued another letter to the developer ... requesting further information,' the department said.