Hong Kong steps in to protect buyers of Grand Homm flats, letting customers rip up contracts with refunds and interest
- Buyers of the Grand Homm flats are entitled to refunds including interest within seven days of cancelling their contracts, said the Sales of First-hand Residential Properties Authority (SRPA)
- Interest is calculated at Hong Kong’s prime rate plus 2 per cent, according to the Transport and Housing bureau, with HSBC’s prime rate at 5 per cent
Hong Kong’s government said buyers of an unfinished residential complex in Ho Man Tin can terminate their contracts and be entitled to refunds with interest, as local authorities step in to prevent the city’s first half-done project in decades from hurting consumers.
“If the buyers believe that the seller has not fulfilled the relevant contract provisions, they may consider filing a civil lawsuit against the seller for their due rights,” the SRPA’s spokeswoman said in a statement.
The move opens the way for the customers who bought 28 of Grand Homm’s 379 luxury apartments to back out of property magnate Pan Sutong’s private project, developed by his wholly owned unit Gold Topmont. It also underscores how cost overruns are putting the squeeze on the tycoon, who dropped off the list of the world’s 500 wealthiest people after the shares of his listed company Goldin Financial Holdings and most of his portfolio were locked up as collateral for loans.
