New World to tear down and rebuild two blocks of The Pavilia Farm flats in Tai Wai, citing construction defects
- Blocks one and eight at The Pavilia Farm project in Tai Wai, both under construction, were found to have defects
- The move will affect 846 buyers, each of whom will receive compensation equivalent to up to 7.6 per cent of their purchase price
More than 10 of the 57 floors in the two towers were built before the defects were found on June 18, by which time 846 of the total 892 apartments in the third phase had already been sold, the developer said. The defects could have been caused by a subcontractor who used C40 grade concrete on the walls instead of C80, which turned the structure into potential hazards because of the weakened walls, according to an engineering expert, who asked to remain anonymous.
“This was due to human error, and the entire team had been sacked,” said a New World spokeswoman, adding that the construction quality and structural safety of Phases I and II of the project meet all legal and statutory requirements. “We decided that it is our responsibility to tell the public what is going on.”
New World’s shares fell 3.9 per cent amid a declining market to HK$38.40, the lowest daily close since March 26, after it announced the demolition. MTR shares rose 0.3 per cent to HK$44.10, the highest since May 18. “A demolition of such a scale is unheard of,” said Tony Tse, who represents the architectural, surveying, planning and landscape constituencies in Hong Kong’s legislature. Cases of minor structural weakness due to bad workmanship is possible, but the current case is unprecedented, he said.