Court rules against Pearl Horizon buyers’ lawsuit

The Administrative Court ruled yesterday that there was no legal grounds for the Pearl Horizon unit buyers to sue the government for the property price and stamp duty paid on apartments from the controversial and never- completed project.

In 2017, a group of buyers of the Pearl Horizon residential estate decided to bring an action before the Administrative Court, requesting compensation that included the price of the property, the stamp duty rebate as well as interest on the payments.

Now the Administrative Court has thrown out the claim in a defeat for the Pearl Horizon group of buyers.

“On the basis of the established facts, [this Court] dismissed the claim made by the claimants for lack of factual and legal grounds,” stated the Court in the ruling.

The Chief Executive formerly reclaimed the land concession from Hong Kong-based developer Polytec after it failed to develop the plot within its 25-year concession.

The government announced last year its intention to build a replacement housing estate on the land plot, in order to resolve both the land plot issue and the issue of small buyers who have been repeatedly calling on the government for help.

Under the government’s plan, Pearl Horizon buyers will be given priority to purchase one of the housing units. Companies or groups are not allowed to make purchases, with all units instead reserved only for individuals.

The matter of compensation is a concern for developer Polytec and the buyers, the government has previously said.