LCQ8: Combating illegal rental activities
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Question:
It has been reported that the Police neutralised a rental fraud syndicate several months ago, involving at least 150 victims and approximately HK$13 million in losses. Through an apartment management company, the syndicate recruited local individuals as agents ("principal tenants") with high commissions on websites or social media platforms, luring talent admitted to Hong Kong under talent admission schemes and students that were "drifters in Hong Kong" to prepay one year's rent before defrauding the victims of their rent using fake tenancy agreements. There are views that the incident highlights gaps in the current regulatory framework for the property rental market. In this connection, will the Government inform this Council:
(1) whether it will consider improving the current regulatory framework for domestic tenancies in response to the aforementioned case in which "principal tenants" allegedly defrauded tenants through illegal means, so as to protect the rights and interests of landlords and tenants;
(2) whether it will require the Estate Agents Authority to strengthen random inspections of property rental advertisements on Mainland and local social media platforms to root out advertisements containing fraudulent or misleading content;
(3) whether the authorities will collaborate with the relevant Mainland authorities and Hong Kong's higher education institutions to develop "guidelines on fraud prevention in the local rental market", which will be distributed to relevant individuals after the Immigration Department issues visas under the Top Talent Pass Scheme and before students' arrival in Hong Kong;
(4) whether the Police will strengthen co-operation with social media platforms to promptly remove and follow up on residential property rental advertisements containing fraudulent content; and
(5) how the Police will strengthen efforts to combat activities where lawbreakers entice students to participate in rental scams using high commissions; whether penalties be increased to serve as a deterrent?
Reply:
President,
The Government has noted recent illegal rental activities perpetrated by fraud syndicates targeting new arrivals in Hong Kong. Through the social media, criminals impersonating owners of residential units contact new arrivals searching for rental units. The criminals falsely claim that they can sublet the units to the new arrivals at a discounted price and lure them into paying rent. Unfamiliar with Hong Kong's tenancy system and ways of seeking help, the new arrivals are prone to fall victims to the fraudsters.
The Government has paid close attention to these rental-related scams. In this connection, the Government combats these activities through a multi-pronged approach, including strengthening monitoring work to ensure compliance of property rental advertisements, conducting targeted law enforcement actions and stepping up publicity and education.
In consultation with the Housing Bureau, the reply to the Member's question is as follows:
(1) The Government's policy on the private residential rental market is to maintain a stable environment and minimise unnecessary intervention, with a view to facilitating free operation and steady development of the market. The Landlord and Tenant (Consolidation) Ordinance (Cap. 7) provides a framework for legal tenancy matters. Part IV of Cap. 7 is applicable to general domestic tenancy, where landlords and tenants may draw up the terms and conditions of the tenancy agreements as mutually agreed, and execute the tenancy arrangements in accordance with the spirit of the contracts. The "principal tenants" mentioned in the question, who deceived the sub-tenants by illegal means, may have committed fraud-related offences, which are regulated under the Theft Ordinance (Cap. 210) and the Organized and Serious Crimes Ordinance (Cap. 455). Furthermore, the Estate Agents Ordinance (Cap. 511) regulates companies and individuals engaged in the estate agency trade. Estate agents and salespersons must comply with Cap. 511 and its subsidiary legislation. They should also comply with the Code of Ethics and Practice Circulars issued by the Estate Agents Authority (EAA). Persons who fail to do so may be liable to disciplinary action. If a licensee is convicted of a criminal offence, the EAA may suspend or revoke the licence of such a person.
(2) The EAA has all along been conducting cyber patrols to closely monitor online advertisements on the sale and letting of properties in Hong Kong (including those posted on social media platforms in the Mainland and Hong Kong), and examine whether they comply with the provisions of the Estate Agents Ordinance and its subsidiary legislation, such as whether the advertisements contain any false or misleading information. The EAA has stepped up these efforts in recent years. A total of 862 random checks on online property advertisements were conducted in the first half of 2025, representing an increase of 21 per cent compared to the same period last year. In case of any suspected non-compliance, the EAA will conduct follow-up investigations. Cases involving criminal elements (such as suspected fraud) will be referred by the EAA to law enforcement agencies for follow-up actions.
(3) To raise the vigilance of new arrivals to Hong Kong against rental-related scams, the Police and the EAA work jointly with relevant Mainland authorities and local stakeholders (including tertiary institutions) to provide new arrivals with online and offline information on rental-related fraudulent activities both before and after their arrivals, so as to help them identify and guard against the scams.
Pre-arrival information
To enable new arrivals to learn about Hong Kong's tenancy system and the fraudsters' common deception tactics as early as possible, the Police have disseminated anti-fraud promotional materials specifically tailored for new arrivals through social media platforms such as Xiaohongshu and Douyin. In addition, the Police have produced a video clip in collaboration with the National Immigration Administration, the Criminal Investigation Bureau of the Ministry of Public Security and the Hong Kong Immigration Department (ImmD). Adopting a first-person perspective of the new arrivals, the video clip demonstrates the modus operandi of fraudsters, with a view to raising the awareness of the new arrivals. The National Immigration Administration will also arrange for the viewing of these videos by the prospective new arrivals during their visa application process. Meanwhile, these videos are disseminated across border control points, exit-entry service halls in the Mainland as well as social media platforms including Xiaohongshu and Douyin.
To strengthen protection of students who newly arrive in Hong Kong, the Police, in collaboration with the National Anti-Fraud Center, have organised both online and offline sharing sessions specifically for Mainland students coming to Hong Kong for studies and their parents. Additionally, anti-fraud information, including details on rental-related scams and ways of seeking help, has been distributed to parents.
Post-arrival information
To ensure that new arrivals stay vigilant after arriving in Hong Kong, the Police distribute anti-fraud booklets and leaflets to them through the six regional public service counters of the ImmD, the Labour and Welfare Bureau and major tertiary institutions across Hong Kong. These materials include methods to prevent rental scams.
Additionally, to broaden the reach of the information, the Police collaborate with relevant industries, including the real estate sector, the banking sector and telecommunications service providers, to distribute anti-fraud promotional packages to new arrivals. These promotional materials are updated from time to time, so as to remind new arrivals to be aware of the latest scam tactics, including rental-related scams.
Furthermore, the EAA is committed to educating consumers on the salient points pertaining to renting and purchasing properties. In view of the fraudulent cases relating to property purchase or rental encountered by new arrivals in recent years, in addition to the promotional measures jointly rolled out with the Police, the EAA has, since the beginning of 2025, been actively collaborating with the Hong Kong Talent Engage, Economic and Trade Offices in the Mainland, the Consumer Council, higher education institutions, non-governmental organisations supporting new arrivals and local media to provide new arrivals with information on renting and purchasing properties in Hong Kong. An online public seminar, which was broadcast live on local and Mainland social media platforms, was also organised to enhance new arrivals' knowledge on the procedures for renting and purchasing properties in Hong Kong as well as fraud prevention. The EAA has put up a number of online advertisements through the Mainland's media network, and has participated in a seminar organised by the Hong Kong Talent Engage, reminding consumers that they should appoint licensed estate agents to better protect their own interests. In this connection, the EAA website provides the Licence List (www.eaa.org.hk/en-us/Licence-list), through which the public can input the full name or licence number of an agent to ascertain whether the agent is holding a valid licence. Moreover, the EAA distributes booklets such as "A Guide to Tenancy" and "Tenancy Guide for Non-local Students in Hong Kong" to various collaborating units. The public may also download these publications from the EAA website (smart.eaa.org.hk/publications) for reference. In future, the EAA will continue with its proactive publicity and education efforts through various channels and means, including preparing the launch of a new educational website, with a view to enhancing publicity on the steps and points to note when renting and purchasing properties in Hong Kong, so as to raise the anti-fraud awareness amongst the general public and new arrivals.
(4) The Police have been maintaining close collaboration with social media platforms. Should suspected fraudulent (including rental-related) content be found, the Police will request the platforms concerned to immediately remove the content and take appropriate follow-up actions. During the period between January and May this year, the platforms concerned have reviewed and removed over 33 000 items of fraudulent content at the request of the Police.
(5) As mentioned in the introduction of our reply, the Government has been paying close attention to the above-mentioned rental-related scams and adopting a multi-pronged approach, which includes enhanced targeted enforcement actions, to combat these activities. For example, in February this year, the Police carried out the Operation Black Fire, during which a criminal syndicate manipulated by triads involving "fake estate agents" was smashed. A total of 14 persons, including a syndicate mastermind, a licensed estate agent and 12 syndicate members, have been arrested so far. The fraud syndicate was involved in over 270 cases, with crime proceeds amounting to approximately HK$30 million. While the Police are continuing with their investigation, one of the arrested persons has already been charged with one count of "conspiracy to defraud", and more of them may be charged.
Lawbreakers enticing students to participate in rental scams using commissions may have committed fraud-related offences, including the offence of "fraud" under section 16A and the offence of "obtaining property by deception" under section 17 of the Theft Ordinance, and are liable to imprisonment for up to 14 years and 10 years respectively. In addition, under section 159C of the Crimes Ordinance (Cap. 200), a person who has committed the offence of "conspiracy to defraud" is liable on conviction to imprisonment for up to 14 years, while a person charged with "dealing with property known or believed to represent proceeds of indictable offence" under section 25 of the Organized and Serious Crimes Ordinance for proceeds of deception is liable to maximum penalties of 14 years' imprisonment and a fine of HK$5 million. Depending on the nature and gravity of the case, the Police may also apply to the court for invocation of section 27 of the Organized and Serious Crimes Ordinance to seek enhanced sentences and thus strengthen deterrence. Members of the public are urged not to commit the offence out of greed.
In conclusion, the Government will continue to adopt a multi-pronged approach to stringently combat rental scams, and raise the new arrivals' vigilance against related scams through enhanced publicity and education.
Ends/Wednesday, July 23, 2025
Issued at HKT 11:58
Issued at HKT 11:58
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