Eight Kwai Fong Happy Valley Buyer Backs Out After 4 Years, Loses HK$3.28 Million

A recent case of forfeiture has been recorded at Eight Kwai Fong Happy Valley, a development by New World Development. The buyer, who purchased the property four years ago, is estimated to have lost 10% of the purchase price as a deposit, amounting to HK$1.3695 million. If the buyer opted for the "Move-In-First, Pay-Later" scheme, the total losses could exceed HK$3.28 million.

According to transaction records, the forfeited unit was Flat A on the 10th floor, with a usable area of 411 square feet and a one-bedroom layout. The buyer purchased the unit in November 2020 for HK$13.695 million, with a transaction period of 1,440 days.

Under the "Move-In-First, Pay-Later" scheme, buyers could apply for early occupancy within 120 days of signing the preliminary sales and purchase agreement. The scheme required buyers to pay 5% of the property price as a permit fee and an additional 3% of the property price annually as an occupancy fee to the developer.

On December 12, the transaction was marked as terminated, indicating that the buyer had canceled the purchase. The buyer is estimated to have forfeited 10% of the purchase price, amounting to HK$1.3695 million.

If the buyer had chosen the "Move-In-First, Pay-Later" scheme, the losses would increase significantly. The total forfeiture would include the 10% deposit, the 5% permit fee, and three years of occupancy fees equivalent to 9% of the property price, bringing the total loss to 24% of the purchase price—approximately HK$3.28 million.

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