Explainer | From construction delays to fraud, risks abound for Hongkongers buying overseas property, agents warn
- Hongkongers lodged 61 complaints against overseas property firms for failing to complete the project on time or reneging on rental return promises
- Consumers who buy property outside Hong Kong should take extra precautions and be extremely wary of the possible risks they may face, the EAA says
With business back to normal after Covid-19 restrictions were shelved, Hongkongers are looking to invest in property abroad.
But risks such as construction delays, developers going bust or outright fraud mean it is easy to be burned in the process, agents warn. Numerous past cases have seen people’s overseas property dreams turn to nightmares.
There were 61 complaints involving seven property projects in mainland China and one in the UK in 2022, according to data provided by the Estate Agents Authority (EAA). They were related to developers failing to complete the construction according to the original schedule or failing to provide guaranteed rental returns.
In the previous year, seven cases of overseas property fraud totalling HK$25.48 million (US$3.2 million) were reported to the police, involving cases in mainland China, Europe and countries in Southeast Asia.
The culprits claimed to be property agents, and introduced luxurious properties to victims for investments. Victims did not visit the property site before making purchases, and only realised later that these projects never existed or did not match the descriptions provided by the fraudsters, the police said.