Why alarm bells are ringing in Hong Kong construction sector after unprecedented blunder at Pavilia Farm project

New World Development will pull down two blocks under construction at project because lower strength concrete was used for walls

Industry watchers say use of wrong concrete mix is quite common in construction but error of this magnitude is unprecedented

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Two partially built towers of The Pavilia Farm III will be demolished and rebuilt. Photo: Sam Tsang

Published: 8:00am, 9 Jul 2021Updated: 11:31pm, 9 Jul 2021

An unprecedented blunder at housing development The Pavilia Farm, which will be partially demolished, has set alarm bells ringing across Hong Kong’s construction sector over inadequacies in site supervision and project management, according to industry observers.

An insider said the MTR Corporation, the Tai Wai project’s joint developer, feared the debacle would affect the property prices of the remaining flats. Prices of phase III currently start at HK$6.76 million (US$870,000), rising to as much as HK$24 million.

“Senior management has expressed concerns over sale prices,” the insider said, pointing to an ongoing investigation into the use of concrete and site supervision.

Shock waves rumbled through the world’s most expensive real estate market on Friday after it was revealed the developer of The Pavilia Farm, Hong Kong’s bestselling new residential property last year, would tear down and rebuild two out of seven blocks under construction because substandard concrete was used.

Concrete strength tests found the podium walls of blocks 1 and 8 of The Pavilia Farm III in Tai Wai “did not meet the requirements of the approved design”, according to a statement by railway operator MTR Corp, which is building the project with New World Development.

New World admitted human error was behind the blunder and said the entire team of project supervisors had been sacked.