2025-02-21 28Hse Editor
In the latest real estate headlines, one of the most startling developments has emerged from North Point's Braemar Hill Mansions, where 95% of the units feature unauthorised external wall modifications to their kitchens, converting them into balconies for drying clothes. The Buildings Department has mandated the demolition of these alterations. Despite the owners' efforts to contest this directive through a judicial review, they ultimately lost the case.
This issue has persisted for several years. Braemar Hill Mansions, comprising 15 blocks and offering 925 units, has a history of unauthorised building works dating back to 1978, when 239 units were found to have unauthorised balconies. That year, the Buildings Department ordered the demolition of these structures in 224 units. In response, homeowners hired structural engineers who certified the safety of these balconies, leading the Buildings Department to retract their demolition orders.
In 1980, the Lands Department suggested that affected homeowners could regularize their balconies by paying a land premium ranging from HK$14,000 to HK$42,000, depending on the case. If not regularised, the unauthorised structures would need to be dismantled. Eventually, no homeowners paid the premium, and the issue was left unresolved.
By 2018, the number of units with unauthorised balconies had increased to 876, representing 95% of the complex. Between 2018 and 2019, the Buildings Department issued demolition orders, and 555 units (involving 615 homeowners) appealed these orders, which were rejected, triggering the recent judicial review.
In the judgment, the judge noted that while the Buildings Department had previously retracted demolition orders and had generally tolerated these illegal structures, it had always reserved the right to enforce the law in the future. Furthermore, the only evidence provided showed that these 236 structures were certified safe 40 years ago, with no recent updates provided. As a result, the 615 homeowners lost the case and were ordered to pay the legal costs.
The consequences of the homeowners' loss are significant. The dismissal of the judicial review means the demolition order stands, and the homeowners must dismantle the unauthorized structures within a specified period. Under the Buildings Ordinance, failure to comply with a demolition order without a reasonable excuse is a serious offense, punishable by a fine of up to HK$200,000 and one year in prison, with an additional daily fine of HK$20,000 for each day the structure remains.
Non-compliance with the demolition order has serious implications. Additionally, potential buyers should exercise caution when considering purchasing units in the Sai Sai Lake Complex. If the Buildings Department requires dismantling, the issue will be registered with the Land Registry.
Properties registered can still be sold, depending on agreements between parties, but they are harder to sell and may be priced lower. Furthermore, banks take a cautious approach to mortgage approvals for such units to protect their interests, making it difficult to secure financing. However, the final approval depends on the individual bank's policies and cannot be generalised.
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