HONG KONG — A massive, contentious plan to finance a nearly HK$500 million (approximately US$64 million) replacement of internal water pipes at the sprawling Fairview Park housing estate in Yuen Long has been abruptly canceled, the property management company announced Tuesday. The decision follows widespread dissatisfaction among residents over the soaring cost and an unequal distribution of the financial burden, particularly heightened by recent public scrutiny of maintenance pricing following a catastrophic fire elsewhere. Despite having already collected the first installment from two-thirds of the more than 3,000 unit owners, the management cited a lack of “community consensus and social conditions” as the reason for terminating the controversial fundraising campaign, promising full refunds beginning late December.
The troubled maintenance plan, aimed at addressing chronic water loss issues plaguing the estate since the 1990s, stirred intense opposition among homeowners who faced mandatory contributions ranging from HK$90,000 to HK$130,000 per household. Compounding the anger was the perception of an unfair system: a major property owner, holding a 52% stake in the estate’s land rights, would be responsible for only 3% of the projected engineering costs due to their limited share of building ownership titles.
Escalating Costs and Decades of Leakage
Fairview Park, a massive residential community in the New Territories, has been struggling with critical drinking water loss since just one year after its occupancy began. An inspection by the Water Supplies Department (WSD) in 2008 confirmed that the estate’s communal supply system was the source of the leakage. In recent years, data indicated daily water losses peaking between 2,000 and 3,000 cubic meters, contributing to an estimated HK$100 million in cumulative lost water fees over the past decade.
The current proposal, formalized in 2021, presented a comprehensive pipe replacement solution with a staggering HK$500 million price tag. The initial push to collect funds began in September, resulting in roughly 65% of the first payment tranche being collected by early December.
However, the timing coincided with heightened public awareness regarding exorbitant maintenance costs across Hong Kong, spurred by recent incidents such as the major fire at Tai Po’s Hing Fook Estate. This broader public concern, coupled with the existing internal dissent at Fairview Park, pressured the management to reconsider.
Management Vows Refund and Future Review
In a circular issued to unit owners, the property manager acknowledged the public’s concern over large-scale maintenance projects and the “problems and doubts” many owners held regarding the current arrangement. They emphasized that the current environment was not conducive to moving forward.
“To avoid further controversy, we have decided to terminate the current fundraising immediately,” the notice stated. Following consultation with the WSD, the immediate priority shifts to processing refunds for all collected funds.
A representative for the management company assured residents that addressing the long-standing water issues remains a necessity, both to comply with WSD mandates and to secure the future habitability of the estate. They indicated plans to re-evaluate the overall project strategy “at a more appropriate time,” aiming to develop a solution that satisfies both regulatory requirements and achieves the crucial buy-in from the majority of homeowners.
The incident underscores the growing complexity and financial burden associated with aging private housing infrastructure in Hong Kong. Experts note that disputes over maintenance costs and ownership obligations are becoming increasingly common, particularly in large estates where ownership structures can be convoluted, often resulting in prolonged delays that exacerbate existing structural problems. Moving forward, the focus will undoubtedly shift toward establishing a more equitable funding method that can unite the divided community behind the necessary repairs.