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New World to Demolish Luxury Hong Kong Towers in Major Setback

  • Real estate developer found defects, will compensate buyers
  • Shares in the company fall as much as 4.8% in Hong Kong
The Pavilia Farm III project under construction in Hong Kong.

The Pavilia Farm III project under construction in Hong Kong.

Source: New World Development

New World Development Co. will demolish two towers at Hong Kong’s most popular housing development in decades and compensate buyers after finding unexpected defects, in a major setback for the real estate company.

The developer will pull down and rebuild the existing floors of Towers 1 and 8 at its Pavilia Farm III project near Tai Wai station after it found the concrete strength in some areas did not meet design requirements, the Hong Kong-based company said in a statement.