New World’s Pavilia Farm project sees its first cancellations with deals for three flats terminated

Market observers fear this could trigger further cancellations amid uncertainty over the demolition and reconstruction of the two affected towers

New World’s compensation for the buyers of 846 units in the two towers earmarked for demolition was seen as ‘generous’

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Two incomplete towers of New World Development’s The Pavilia Farm residential project will be demolished and rebuilt because of construction defects. Photo: Sam Tsang

Published: 6:30am, 16 Aug 2021Updated: 6:30am, 16 Aug 2021

New World Development’s The Pavilia Farm III project, where two blocks are earmarked for demolition, has seen its first cancellations.

Deals for three flats in the affected blocks of Hong Kong’s bestselling new residential project last year were terminated despite adequate compensation offered by the developer. Some market observers fear more cancellations were possible because of uncertainties over the project.

The three flats, of which two were owned by a single buyer, were priced at HK$26.27 million (US$3.38 million), HK$17.23 million and HK$11.94 million, respectively, according to data from the Sales of First-hand Residential Properties Authority.

New World confirmed the cancellation of the deals on Sunday.

Potential buyers queue up for flats at The Pavilia Farm III in Tai Wai in June. Photo: Xiaomei Chen

“No one can predict when the developer can tear down the towers and rebuild two new blocks because it involves many parties including the government and the subway operator MTR Corp,” said Vincent Cheung, managing director of Vincorn Consulting and Appraisal.

He said that end users with actual needs cannot wait and will cancel their purchases and look for other flats, but added that he expects most buyers to stick with their purchases “due to the generous compensation offered by the developer”.