Uncovering Hong Kong’s secret land grab
Only a quarter of homeowners at three upmarket Hong Kong estates exposed by a Post investigation have ceased occupying public land a year after the findings were published, while about 10 per cent have demolished their unauthorised structures.
Experts said owners could have reasonable excuses for the delays, as they might be in the appeals process, awaiting approval for plans or relocating tenants.
But the specialists urged the government to further step up enforcement over the suspected illegal use of land and increase penalties, in addition to a proposed amendment to the Buildings Ordinance targeting unauthorised structures. A consultation period over the changes to the ordinance ended on Friday last week.
Authorities told the Post they would issue warning letters, or consider prosecution, for cases involving homeowners who dragged their feet in carrying out rectifications to their properties at Block B of Flamingo Garden on Kowloon Peak, Seaview Villas in Tai Po and Villa Rosa in Tai Tam.
In February last year, the Post found that nearly 90 per cent of the 50 houses – valued at between HK$50 million (US$6.39 million) and HK$119 million each – in the three estates were suspected of having unauthorised additions at or near their properties. Some of these additions were built on government-owned slopes.
Following the Post’s investigation, the Lands Department eventually issued statutory notices requiring the cessation of occupation and the removal of structures on public land to 34 of the 50 houses.
A total of 44 homeowners also received removal orders or advisory letters from the Buildings Department over unauthorised structures.
The Post compared original drone footage taken in November 2023 and January 2024 with fresh aerial imagery shot in December last year.
The new drone footage shows homeowners at Flamingo Garden have carried out the most changes out of the three luxury estates. Ten of the 16 blocks have either made visible changes or are undergoing works.
Seven houses have made some of the most dramatic changes. They have scaled back their private gardens that were suspected of having encroached on public land, in some cases removing significant window-lined structures.
The footage also shows two swimming pools have been filled in.
According to the Lands Department, seven of the nine blocks subject to its notices had ceased occupying government land and another one had started demolition, as of the end of December last year. The notices required compliance by the end of October last year.
The Buildings Department said it had issued removal orders to 15 homes with unauthorised structures in April and May last year. Nine of the properties had started demolition works while four others had lodged appeals.
At the 18-house Seaview Villas, 15 homes were subject to land notices to be complied with by the end of November last year. Two had refrained from occupying public land and another seven had commenced demolition works as of the end of December, according to authorities.
Although 17 of the 18 houses had received removal orders from the Buildings Department between April and July, only four of them had made the required fixes and another two were undergoing demolition works.
Over at Villa Rosa in Tai Tam, 10 of the 16 houses were subject to land notices to be complied with by the end of December last year. Two had started restoration works and eight had submitted slope assessment reports before the notices expired.
The Lands Department said it was reviewing the demolition works and seeking advice from other departments on the slope reports, adding that it would consider taking further action, including prosecution.
The department also said it had carried out a successful prosecution of a “person related to a stand-alone house”, which was not one of the 10 subject to land notices, after it was found to have built additions on government land.
The person was fined after pleading guilty. The property is no longer occupying public land.
The Buildings Department sent advisory letters to the owners of 10 houses over the unauthorised structures at Villa Rosa.
It also issued removal orders to the landlords of two houses for their newly constructed, unapproved add-ons, with one complying and another pledging to arrange relevant work after receiving a further warning letter.
Veteran surveyor Vincent Ho Kui-yip, president of the Hong Kong Institute of Building Safety, said demolition works could be carried out swiftly, but large-scale changes could take more than six months.
He also said changes to unauthorised additions on government slopes could prove to be more complicated, as owners had to submit reinstatement proposals.
The plans could involve the design of retaining walls and slope drainage, with homeowners needing to get the green light from the Geotechnical Engineering Office.
He said he hoped a proposed amendment to the Buildings Ordinance, which included tougher penalties, would prevent new unauthorised structures from being erected and help to get existing ones removed.
The proposal includes raising the maximum penalty to HK$300,000 and two years in prison for first-time convictions of owners who refuse to comply with removal orders issued for “serious” unauthorised structures, such as basements.
It also suggests introducing a new offence that would hold owners liable for having a “serious” unauthorised structure on a property they acquired after a specific time.
The Buildings Department can only regulate structures on private properties, while the Lands Department manages government land.
Ho said the Development Bureau could truly tackle the problem by amending the Land (Miscellaneous Provisions) Ordinance to allow for the imposition of fixed penalties on those found to have occupied government land.
Under the existing arrangement, owners only face prosecution if they fail to cease unlawful occupation of public land before a deadline set by authorities.
“There is only a deterrent effect when they face a fixed penalty upon the discovery of their illegal occupation of government land,” he said.
Professor Yau Yung, from Lingnan University’s department of sociology and social policy, also wanted to see artificial intelligence used to check for illegal additions and land occupation.
He said a digital system could be set up to help inspections in the long term.
“Technology can help save manpower and allow officers to focus on prosecution,” Yau said.
He added that the Lands Department should step up its inspection efforts and take enforcement action against easily identifiable offenders.
“Many have the impression that it will take years for the government to prosecute cases of unauthorised structures and occupation of government land,” he said.
“The government should show that it is taking valid action.”
The Development Bureau said the Lands Department would review how to better use its legal powers and staff to strengthen enforcement and prosecution, including prioritising work on serious cases.
“Depending on the effectiveness of these efforts, we may consider measures to strengthen deterrence if necessary,” a bureau spokesman said.
Uncovering Hong Kong’s secret land grab
Unauthorised expansions to luxury homes have been found across Hong Kong, triggering concerns over safety risks, unfairness and lax enforcement.
Home to 7.5 million people and short on space, Hong Kong has long been the world's least affordable housing market. Hundreds of thousands of residents still live in cramped subdivided flats, many of them enduring lengthy waits for public housing.
Last year, however, landslides triggered by a record-breaking downpour exposed how some of the city’s wealthiest living at Redhill Peninsula had expanded their homes with grand but unauthorised add-ons – from swimming pools to basements – on government land at essentially no cost.
Yet the high-profile case is anything but rare, according to a Post investigation that uncovered suspected unauthorised land encroachment and structures at three other upmarket estates, following a wider study by an NGO.
Here the Post presents its findings on how the rich grab land in space-poor Hong Kong.
Flamingo Garden
Extra rooms on public land and unauthorised pools
Nestled on the lower rises of Kowloon Peak, the 16 houses in Block B of Flamingo Garden enjoy unobstructed views of Kwun Tong. Each pricey property costs as much as HK$71.8 million (US$9.18 million), with floor areas of about 2,496 sq ft.
Most are suspected of having unauthorised structures, including swimming pools and separate sheds or rooms, with some of them on a government-owned slope outside their original boundaries.
Among the 12 houses that appear to go beyond their boundaries, 11 are suspected of having structures or extensions on government land, but foundation depths, structure heights and lengths cannot be ascertained.
Four houses are suspected of having private pools that are not listed on the government’s online records.
After a Post inquiry, the government notes it will continue to take enforcement actions against suspected unauthorised structures, but stops short of saying whether it has issued any removal orders. Authorities also confirm they have not granted any short-term tenancies for additional land, promising further action if needed.
Construction on the slope
Additions appear to sit atop the government-owned slope.
Before construction
The government approved flattening the ground in the area to make room for the estate.
Original building plan
The building structure sits 20 to 25 metres from the lot boundary, while a fence beyond that limit marks the end of the extended garden.
Common modification
Almost all the houses have part of their gardens beyond the lot boundaries, while four have added swimming pools which are not listed in government records. Window-lined structures, some of which have balconies and visible staircases, can be found on the extended gardens in a few of the houses.
Flamingo Garden is one example among many. The Liber Research Community, an NGO, conducted research soon after the Redhill Peninsula scandal broke and found at least 173 houses suspected of illegally occupying land at luxury estates across the city.
The Post took a deep dive into three of the estates to study the extent of non-compliance by comparing live drone footage with original construction plans, the government’s lot boundary records and past satellite images to understand the citywide situation.
Seaview Villas
A ‘castle-like’ structure and enclosed rooftops
Built on a slope boasting stunning views of Tolo Harbour, Seaview Villas comprises 18 houses, one of which was recently marked for sale at HK$50 million.
Most of the homes have undergone suspected unauthorised modification, from having fish ponds to basements.
After a Post inquiry, the government has confirmed issuing removal orders, without disclosing how many houses are affected. It says it also has not granted a short-term tenancy to any houses to lease additional land and will take action as necessary.
This quiet, low-density neighbourhood in the hills of Tai Po enjoys a high level of privacy, keeping any potentially illegal add-ons far from prying eyes.
Modification levels
Additions to the houses range in size. The massive scale of the extension is in sharp contrast with the conditions endured by the more than 215,000 people living in Hong Kong’s subdivided homes.
Villa Rosa
Garden paths and steel platforms
Perched above Redhill Peninsula, Villa Rosa boasts 16 houses of more than 3,300 sq ft each, with the latest sale in 2022 hitting HK$119 million and monthly rents currently reaching HK$300,000.
Most of the homes are seen with their gardens extended on government land and having unauthorised structures.
Some of the houses increased the size of their gardens by at least double, extending beyond their allowed limits.
Up to 11 out of 16 houses are suspected of having extended their gardens onto government land without permission.
At least 13 appear to have unauthorised building works.
After a Post inquiry, the government has confirmed 13 flats occupy government land and 10 homes have unauthorised structures on their rooftops or in their gardens.
Surveyor Vincent Ho Kui-yip questions the stability of the steel platforms as they are not resting on a stable foundation.
Veteran structural engineer Ngai Hok-yan also says the structures are likely to be unauthorised, with developers most probably already having maximised the plot ratio – the development density permitted under planning rules – during the design stage.
Two building professionals say any additional load is bound to affect slope stability and the extra concrete structures at both houses may indicate the presence of basements.
Centaline Surveyors executive director James Cheung King-tat says some buyers may be willing to pay for a larger living space but with a discount on the unauthorised area, such as half of the price per square foot.
For example, if a 3,000 sq ft house is priced at HK$90 million (US$11.5 million), or HK$30,000 (US$3,836) per square foot, a 1,000 sq ft illegal extension can yield an extra HK$15 million (US$1.92 million) if the buyer asks for a 50 per cent discount.
Cheung says the additions can also generate extra rental income as tenants may pay more for the extended space, given that they do not bear the legal responsibilities and only have to move out if there is enforcement action.
The Redhill Peninsula landslide
The start of the exposé
Unauthorised building works at the luxury Redhill Peninsula estate, just below Villa Rosa, sparked the latest land grab saga.
The day after the record-breaking rains lashed the city on September 7 and 8, 2023, building authorities were notified of the landslide at Redhill Peninsula, which exposed unauthorised works and illegal occupation of government land at four houses. The government moved to issue removal orders to the owners.
Since then, authorities found another 70 of the 85 seaside homes had extended beyond their legal limits, had built unauthorised structures, or had undertaken both add-ons.
AREA AFFECTED BY THE LANDSLIDE
The estate’s 256 buildings and houses provide a combined 494 flats.
Unauthorised structures add extra load to the government-owned slope and compromise the safety of buildings and the land itself.
SEPTEMBER 7 to 8, 2023 | THE DAYS OF THE GREAT RAIN
During the downpour, the city logged its highest hourly rainfall of 158.1mm since records began in 1884.
The city recorded 26 landslip warnings between 2014 and 2023, five more than the previous decade, amid rising levels of rainfall.
Landslide area in the Redhill Peninsula
Experts say the illegal structures at the four seafront houses, three of which were unlawfully occupying government land, may have destabilised the soil, which was then further affected by the rainstorm.
Heavy rainfall and the geology of the area are also believed to have contributed to the landslide, but authorities are still investigating the exact causes.
The citywide downpour hit on the night of September 7. The Observatory first issued its lowest-tier rainstorm warning at 9.25pm and escalated it to the highest level within 100 minutes, eventually lasting for 19 hours until the next afternoon.
Authorities recorded 75 landslide reports – including the one in the Redhill Peninsula – as of midday on September 10.
FIX IT OR FACE THE MUSIC
The government has demanded homeowners fix the violations within 60 days or 150 days, depending on their severity. Those who fail to comply on time without a reasonable excuse face prosecution.
Owners of houses No 70, 72, 74 and 76 will also have to foot the bill of the slope repair works if their illegal structures are found to have triggered the landslide.
PROSECUTIONS OVER UNAUTHORISED BUILDING WORKS IN THE PAST DECADE
The Buildings Ordinance provides hefty penalties for convictions of unauthorised construction, with maximum fines of HK$400,000 and jail terms of up to two years.
But Vincent Ho Kui-yip, former president of the Hong Kong Institute of Surveyors, says parties involved such as professionals and construction companies are often not easily linked to any solid evidence as paperwork is kept deliberately sparse.
Instead, the government is left to issue statutory removal orders to house owners.
HOW THE PENALTY PROCESS WORKS
The government enforces relevant laws through the Buildings Department and Lands Department. The former regulates structures on private land, while the latter is responsible for managing unleased government land.
But analysts say the government’s leniency and lax law enforcement are some of the key reasons behind its failure to eradicate illegal structures.
An analysis by the Post of the Buildings Department data* shows that criminal prosecutions have been made in at least 81 cases of unauthorised structures since 2013. Only 14 cases concern luxury residences, with the rest mainly relating to other buildings.
*The Buildings Department does not keep an open tally of all related prosecutions, only publishing more serious cases in which fines slapped on owners go beyond a certain level.
FINES DWARFED BY RENTAL INCOME
Using the Discovery Bay case as an example, the owner was fined an amount estimated to be about 17 per cent* of the property’s annual rental income.
PAST SCANDALS AMONG THE POLITICAL CLASS
The problem of illegal structures has persisted over the years, at times landing high-level officials in hot water.
Henry Tang Ying-yen | Former chief secretary
The discovery of an illegal 2,300 sq ft basement, reportedly replete with a wine cellar and a Japanese bath, in Henry Tang’s Kowloon Tong home eventually cost him his election bid for the city’s top job in 2012.
Teresa Cheng Yeuk-wah | Former justice secretary
A scandal erupted in 2018 when the adjoined homes of then justice secretary Teresa Cheng Yeuk-wah and her husband in Tuen Mun were found to have 10 illegal extensions.
The added structures, which together added up to 1,800 sq ft, were estimated to be worth HK$35 million. Cheng has degrees in law and engineering, and co-wrote a book on construction law.
WHAT THE EXPERTS SAY
With a government review on the Buildings Ordinance under way that could lower the thresholds for prosecution, streamline procedures and raise penalties, the Post asks experts how authorities should tackle the long-standing problem of illegal structures.
The penalty could be one or two times the rental profit, or half of it. If it’s not sufficiently high, the deterrent effect will not be enough.
Tony Tse Wai-chuen
Lawmaker from the architectural, surveying, planning and landscape functional constituency
For every new property transaction, owners have to check whether they are buying unauthorised building works … We have to try to eradicate the works when the transactions are made.
Vincent Ho Kui-yip
Former president of the Hong Kong Institute of Surveyors
Professionals tend not to take risks as they may lose their licences. It’s possible that some interior designers and renovation workers are not aware of the law. I suggest the government consider imposing a licensing system on them.
Benny Chan Chak-bun
President of the Hong Kong Institute of Architects
The government needs to show its determination to the public that it is dealing with all the cases in every luxurious neighbourhood.
Brian Wong Shiu-hung
Member of the Liber Research Community, an NGO focusing on land issues
ONE YEAR ON
The Post returned to the three luxury estates a year after publishing its report.
Of the 50 houses, 34 occupied government land and 44 had unauthorised structures, authorities confirmed. Officers issued notices, removal orders or advisory letters to owners asking for rectification.
But only nine houses had ceased occupying government land. Another 18 homeowners had either started restoration works or submitted slope assessment reports to authorities.
Only five properties had fully complied with building orders over unauthorised structures and 11 were undergoing demolition works. Another four homeowners had lodged appeals.
The government said it would continue to follow up on the other cases and consider prosecution.
Experts said owners could have reasonable excuses for the delays, such as tenants being relocated and plans awaiting approvals.
FLAMINGO GARDEN
Seven houses appear to have removed structures or are undergoing works. Two houses have filled in their illegal swimming pools, while gardens and unauthorised structures on public land at six houses have also been demolished.
Authorities said seven of the nine blocks occupying government land had ceased doing so, while another had started demolition works as of the end of last December.
The government said nine of the 15 houses with unauthorised structures were carrying out demolition works. Four homeowners had filed appeals.
SEAVIEW VILLAS
Some of the additional structures are no longer seen at three houses, suggesting they have been removed. The gardens of two of those houses appear to have retreated, with fences erected.
The ponds at one of the blocks have been partly filled in. But no obvious changes are visible at some of the homes.
Authorities said two of the 15 houses occupying public land had complied with restoration notices and another seven had started demolition works.
Four of the 17 houses with unauthorised structures had complied with the removal orders, while another two were undergoing demolition works, the government said.
VILLA ROSA
One house has scaled back its garden, adding fences and pillars. Another two can be seen having work done at their gardens on public land.
The government said 10 houses were subject to land notices, of which two had started restoration works and eight had submitted slope assessment reports.
Officers also sent removal orders to two homeowners and issued advisory letters to urge another 10 to rectify their illegal additions. Only one house had complied with the removal orders.