Sales of Cheung Kong hotel suites face more scrutiny
Carrie Lam's warning comes as experts say it will be too hard to check who is living in units
The government says it will "follow up" on Cheung Kong's sales of hotel suites, but experts say it will be difficult to check if buyers are breaking hotel regulations by treating their units as homes.
The government is studying the potential risk faced by buyers, for instance having to share renovation costs for the hotel. They may also have to pay a hefty premium when the land lease of the hotel expires.
Cheung Kong has exploited a legal loophole, not plugged until July 2003, that allows hotels to be sold in parts. It sold all 360 units in the Apex Horizon hotel in Kwai Chung on Monday and Tuesday. The units are classified as commercial properties so buyers do not have to pay stamp duty, including the 15 per cent special duty introduced on non-locals last year to cool the market.
Secretary for Development Paul Chan Mo-po said on Tuesday the government would take over the site if the designated hotel space was not maintained. Last night he said the Lands Department had written to the developer requesting information to ensure the premises would still be used as a hotel.
The executive director of the Hong Kong Hotels Association, James Lu Shien-hwai, said the hotel's licence could be breached if the rooms were occupied by the buyers, turning them into "residential use".