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Hong KongLaw and Crime

No guarantee that buyers' views will not be marred despite tightened rule

Court ruling against owner seeking compensation for obstructed outlook raises questions about effectiveness of ordinance meant to protect buyers

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Yang Dandan lost her bid for compensation from Hong Kong Resorts over an obstructed sea view from her unit. Photo: Felix Wong
Peggy SitoandJULIE CHU

The views over Discovery Bay from Yang Dandan's luxury home were spectacular - but ultimately, fleeting. Yang, who was named one of the top 10 female entrepreneurs by Forbes magazine in 2011, paid about HK$17.2 million for the duplex unit at the Chianti development in 2007.

Her prized sea view lasted just 2-1/2 years before it was obstructed by construction of tower blocks in front of her apartment on the well-heeled Lantau Island enclave.

Now, Yang is staring at a hefty legal bill for the failed court action against the project developer of the Chianti project, Hong Kong Resort. High Court Deputy Judge Kent Yee Kai-siu yesterday ruled that the developer did not misrepresent the conditions at the time of Yang's purchase of the unit.

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The judge, who made a site visit to the apartment, considered losing the sea view to be a minor matter, noting that only part of the view was blocked. The case was dismissed and so Hong Kong Resort will not be paying the HK$8 million in damages sought by Yang.

The court case had captured the city's attention as individual buyers rarely sue developers. The legal fees required to mount such an action prove too costly for most.

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"Individual buyers and vendors are not on a level playing field. That is why the ordinance was introduced," Eugene Fung, director of the Sales of First-hand Residential Properties Authority (SRPA) said, referring to the Residential Properties (First-hand Sales) Ordinance. In effect since April 2013, it governs the dissemination of sales information to prospective buyers, including the use of brochures, price lists and ads.

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