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Owners count cost of illegal structures

By Alex Liu

Hong Kong, 7 July 2025: Proof of the authorities’ renewed resolve to combat unauthorised building works (UBWs) can be found in a spate of court cases that have resulted in significant fines. For any citizens who have made illegal alterations to their homes in the belief the law will not catch up with them, the penalties handed down should serve as a warning.

Six separate prosecutions were brought under the Buildings Ordinance (Cap. 123) last month in which offenders were fined a total of HK$780,000. They also had to bear the cost of correcting the works which, in some instances, amounted to millions of dollars.

In a case we have previously highlighted, a decoration company and an interior designer were fined a total of HK$260,000 over illegal modifications to a load-bearing wall at an upscale flat in Lohas Park, Tseung Kwan O. The defendants each pleaded guilty to a count of knowingly carrying out building works without approval and consent for removing three walls, including a structural one. The decoration company also admitted an additional charge of “carrying out works in such a manner as is likely to cause a risk of injury to person or damage to property”.

The matter came to light in May 2023 when the Buildings Department found a section of a 20cm-thick load-bearing wall had been illegally removed to install a door between the flat’s living room and a bedroom. An online video showing the renovation work had earlier sparked safety concerns among residents. The court was told the defendants had spent HK$4 million repairing the damage.

Another high-profile example of UWBs we have discussed – and one on a far greater scale – concerns the scandal at upmarket Redhill Peninsula. Readers may recall how a landslide there in September 2023, following record rainfall, exposed illegal structures at three properties adjacent to the sea. Further investigations by the authorities found 70 out of 85 homes at the luxury development had encroached on government land or built unauthorised structures such as swimming pools and basements.

Thus far, some 30 prosecutions have been confirmed, with the first two cases being heard last month. The property owners were fined HK$82,980 and HK$30,000 respectively. There were complaints from lawmakers and safety engineers that the penalties should have been more severe, although it was noted the defendants would also have to bear the cost of restoring the homes to their original state.

Three other prosecutions in June resulted in fines totalling more than HK$410,000. These involved: an unauthorised structure on the roof of a village house in Sha Tin which saw the owner fined HK$128,300; two illegal structures at the top of a residential building in Tuen Mun which brought a penalty of HK$197,500 after the owner was prosecuted for the third time; and an HK$85,060 fine for alteration works, including the removal of fire doors, on the ground and eighth floors of a composite building in Prince Edward Road West, Kowloon.

As part of its crackdown, the government is planning stiffer fines and placing a stronger focus on major illegal structures such as basements and podiums. Amendments to the Buildings Ordinance are being drafted and will be put to the Legislative Council in the first half of next year.

Currently, the maximum penalty for carrying out illegal works is two years in prison and a HK$400,000 fine. It is proposed to increase this amount to HK$2 million. There will also be a new offence holding owners liable for having a “severe” unauthorised structure on their property, regardless of whether they built it. Those who help residents take ownership of properties with illegal structures, such as property agents and solicitors, will also be held accountable.

To be clear, it is the responsibility of homeowners to comply with building regulations. If in doubt, citizens are strongly advised to seek professional advice. Here at BC&C we have considerable experience in property ownership and building management issues and are ready to help.

Alex Liu is Managing Partner of BC&C. He was Chairman of the Appeal Tribunal Panel (Buildings Ordinance) for nine years until 2018 and a frequent legal advisor on the TVB documentary series A Property a Day. His key areas of practice include commercial and corporate litigation, investigations by governmental bodies, and insolvency and debt restructuring. He can be contacted at alex@boasecohencollins.com.

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