Tall problems force developers to put projects on hold
Redevelopments hit by court ruling on what is a house and its meaning for land premiums

This is shaping up to be one of the worst years ever for Hong Kong developers.
The rules of the game in the property market have changed with the government's cooling measures running headlong into the market forces of demand and supply.
The Residential Properties (First-hand Sales) Ordinance, aimed at protecting buyers from dishonest sales practices, took effect on April 29. Any developers deemed to have misled buyers may face criminal charges.
The latest blow to developers involves the payment of a land premium if a high-rise building is planned for a redevelopment site that has a land-lease restriction stipulating that "not more than one house" may be built on the land.
This is because the Court of Final Appeal ruled last week that a high-rise is not a house.
As a result of the ruling, small developer Fully Profit (Asia) must pay a land premium to build a 26-storey residential building on a Kowloon City site. Each of the site's five lots has the "not more than one house" restriction in its land lease.