Mediation was touted as a quick, cheap way to resolve disputes arising from a controversial law making it easier for developers to buy old buildings, but only two deals have been reached in the past year.
And one homeowner who tried the process described it as little more than a formality.
Two years ago next month, rules changed on the enforced sale of buildings more than 50 years old, allowing a developer that owns 80 per cent of a block to apply to the Lands Tribunal for compulsory purchase of the rest to make way for redevelopment; previously they had to own 90 per cent to do so. The 90 per cent threshold still applies to newer blocks.
Secretary for Development Carrie Lam Cheng Yuet-ngor announced a pilot mediation scheme last year, saying it would 'save minority owners the burden of litigation'.
But, according to Development Bureau figures released to the Legislative Council, only two out of 31 cases taken to mediators produced a result. While one of the successful cases was completed in a month, the other took seven months.
A flat owner who identified herself as Mrs Wu said mediation failed to help her fight for a better price for her 700 sq ft flat in Tang Fung Street, Aberdeen, in which she lived with her husband, her parents and her son.