Struggling home buyers face a spate of litigation after Cheung Kong (Holdings) took the lead and sued defaulters at its Maywood Court project in Tin Shui Wai for damages.
Cheung Kong reportedly sent legal letters to defaulters at Maywood Court, part of its Kingswood Villas project, asking them to pay the difference between the resale price and original sale price.
Compensation demanded includes interest expenses and any administration fee arising from the resale.
Maywood Court defaulters reportedly were required to pay compensation within 14 days after the letter was sent.
Cheung Kong is the first developer known to have taken action against buyers for failing to complete purchases. The move triggered market concerns that other developers would follow suit.
New World Development and Sun Hung Kai Properties (SHKP) yesterday said they were studying whether or not to take action against buyers who had not completed deals.
Defaults have become commonplace in the primary market after property prices slumped about 50 per cent from their peak last year.
