Evergrande Founder Hui Ka Yan Faces Turbulent Hong Kong Property Legacy

Summary

Key Points

• Evergrande's first Hong Kong project Terra (formerly Imperial Jade Bay) launched in 2019 at Tuen Mun Siu Lek Meu with 1,982 units; Phase 1 first batch averaged HK$15,400 per sq ft after discount, starting price HK$3.18 million 1
• The development offered buyers a 90 percent first-mortgage "breathing plan" through Evergrande Finance; after Evergrande's collapse, owners faced rates exceeding 8 percent and were unable to refinance as valuations plummeted 1
• Fucai Development took over and renamed the project Terra, slashing prices by 60 percent to clear inventory, triggering a wave of defaults as owners found their properties worth less than their mortgages 1
• Centaline Property disclosed that the developer still owes over 460 units' commissions exceeding HK$100 million, with more than 300 affected buyers claiming HK$150 million in unpaid rebates 1
• Longfor Vue in Cheung Sha Wan saw at least 33 buyers forfeit deposits totaling HK$14.48 million within two months after VMS Group took over in March 2022, as the original "breathing plan" financing became unavailable 1
• Evergrande purchased the Yuen Long Wo Sang Wai site from Henderson Land Development for HK$4.705 billion in 2019; after paying HK$4.2 billion in land premium in 2021, the total investment reached HK$8.905 billion before Oaktree Capital seized the asset 1
• Secondary market transactions at Terra have recorded losses ranging from 6 to 48 percent year-to-date, with the development still selling remaining new units including five three-bedroom flats recently sold for HK$6.25–7.08 million each 1

Why It Matters