CK Asset opts to rebuild 3 blocks at starter homes project after steelwork scandal

Three of the six residential buildings at CK Asset’s “starter homes” project in Hong Kong will be demolished and rebuilt in what the developer called the most “time-saving” solution, two years after a scandal over substandard steel reinforcement work halted construction.

The Buildings Department confirmed on Thursday that it had approved demolition plans for three blocks at the Anderson Road development in Kwun Tong, while remedial work was under way at the other three.

Earlier investigations found significant discrepancies between steel reinforcement installed in parts of the six towers and the approved plans, including fewer reinforcing bars than required. Ten people were also arrested in connection with the project on suspicion of bribery and other offences.

CK Asset said the remedial proposals it submitted to the department required investigation and verification, a process it described as “extremely time-consuming”.

“Previously, the engineering consultant spent nearly two years conducting investigations for three of the six buildings and proposing remedial measures accepted by the Buildings Department,” a spokeswoman said.

“Therefore, after evaluating the options based on efficiency and cost-effectiveness, we determined that demolishing and rebuilding the remaining three buildings is the most time-saving solution.”

The developer named China Railway Engineering (Hong Kong) Limited as the new contractor. It also cited the department as saying there was no obvious structural danger at any of the buildings.

The department confirmed that the developer planned to demolish and rebuild three buildings.

“The Buildings Department has received and approved the relevant demolition plans, but the department has not yet received an application to commence the demolition works to date,” it said.

It added that it had approved a remedial proposal submitted by the structural engineer for the other three buildings and lifted the stop-work order in May. It understood that remedial work had begun progressively since then.

The development is a “starter home” project, for which the government invited tenders to help first-time flat buyers who are ineligible for subsidised housing.

CK Asset’s subsidiary Art Champion Investment won the bid with a land premium of HK$4.9 billion (US$625.7 million).

The project has been embroiled in construction quality concerns since August 2024, when the department received a report alleging problems with steel reinforcement work.

In August last year, the department initiated 205 prosecutions against registered general building contractors and related professionals.

The city’s corruption watchdog also said in May last year that it had arrested 10 suspects in connection with the project, over alleged bribery, conspiracy to defraud and use of false documents.

Those arrested included an employee of the main contractor; five proprietors, operators or employees of subcontractors; and four site supervisors at an engineering consultancy.

The project’s initial contractor, Aggressive Construction Engineering, lost its operating licence in 2023, leaving it unable to carry out building work.

Superb Interior Contracting Company took over the project that year.