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August 27, 2010

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Ban on developer after complaints

A PROPERTY developer has been forbidden from taking further projects in the city after one of its complexes was found to be of poor quality and suffering from serious water leaks.

Owners had been given keys to their new homes in a complex, Fuli Taoyuan, in suburban Qingpu District, early this year. But decoration work had long been suspended due to poor house quality.

"I would worry about my house once there is downpour outside," said one owner, Feng Baodi, who bought a decorated house.

Problems have been found in most of the 160 households. The existing houses are just the first phase of the whole complex.

The district construction watchdog said it had negotiated with developer, Puwei Real Estate Development Co, the Shanghai branch of the R&F Properties Co, asking it to beef up the repair work.

"Otherwise the following construction in the complex will be held," said an official with the Qingpu District Construction and Traffic Commission.

The developer has two main complexes in the city, both in suburban areas. R&F has its headquarters in southern China's Guangzhou and listed in Hong Kong in 2005.


Yang Wuzi, general manger with the construction department of the developer, said yesterday that repair work had mostly been done.

However, house owners said repair work had been done before but there was not much improvement.

The owners began complaining about problems to the local construction quality management association in April.

The association sent engineers to investigate and said repair work should be done immediately. Despite promising to give a reply within a week, the developer failed to do so, the association said.

"I can not remember how many times I talked with the developer about repairs," said Feng, who bought a three-story house for 4.38 million yuan (US$644,300) in November, 2009. "They just keep putting it off."

The average price for other unfinished houses is 2.5 million yuan.

The first leaks were spotted in the basement and then water leaks happened on upper floors, said Feng.

Feng said the developer did not allow withdrawing from the house contract, only agreeing to repair.

"But it seems the repairs are useless and there are leaks all over my house."

Dozens of other owners are suing the developer but so far there have been no court verdicts. "With no other way," said Feng. "I will turn to the law myself."


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