Property Manager Fined HK$125,000 for 27 Years of Neglect at Cheung Chau Estate
HK01 · 1 SOURCESabout 1 hour ago3 MIN
Summary
The Property Management Authority (PMA) has imposed its most severe penalty to date under Hong Kong's property management licensing regime, fining Cheong Sang Property Management Company HK$125,000 for systemic failures spanning nearly three decades at Kwei To Garden on Cheung Chau. The disciplinary action, announced on July 14, also includes a severe written reprimand and an order for the company to pay hearing costs. This represents the first case since the licensing system was implemented in August 2020 involving a property management company that failed to establish an owners' committee, neglected to convene any owners' meetings, and subsequently issued meeting minutes containing material inaccuracies.
Key Points
- Cheong Sang managed Kwei To Garden for approximately 27 years following the estate's completion in 1998, yet failed to convene a single owners' meeting or establish an owners' committee as required under the deed .
- The estate comprises 26 blocks with 192 residential units, and the first owners' meeting was only held in 2025 after the PMA intervened .
- Following the inaugural meeting, Cheong Sang published meeting minutes containing critical discrepancies between the recorded content and actual proceedings, constituting false statements under the General Code of Conduct .
- The disciplinary hearing took place on June 26, during which Cheong Sang denied the allegations; however, the hearing panel unanimously found the company guilty of professional misconduct and negligence under Section 4(a) of the Property Management Services Ordinance (Cap. 626) .
- This was not Cheong Sang's first infraction—the company received a written reprimand, verbal warning, and HK$30,000 fine in 2024 for failing to maintain required staffing ratios and neglecting to notify the PMA within 31 days after terminating a licensed property manager .
- Beyond Kwei To Garden, Cheong Sang also manages Cheong Sang Commercial Building in Sheung Wan and Cheong Po Centre in Mong Kok .
Why It Matters
This landmark case signals the PMA's willingness to pursue substantial enforcement action against property management companies that persistently disregard their statutory obligations to owners, particularly in smaller estate developments where residents may lack the resources or awareness to demand accountability. The combination of prolonged non-compliance and document falsification suggests systemic governance failures that regulators may scrutinize more closely in future licensing reviews.
This landmark case signals the PMA's willingness to pursue substantial enforcement action against property management companies that persistently disregard their statutory obligations to owners, particularly in smaller estate developments where residents may lack the resources or awareness to demand accountability. The combination of prolonged non-compliance and document falsification suggests systemic governance failures that regulators may scrutinize more closely in future licensing reviews.