Shanghai Pufa Hongwan Community is scheduled to be delivered to owners by the end of this year. However, recent findings have revealed that the commercial properties purchased by owners are facing a serious issue – across the road lies a plot of land known as a “toxic site” contaminated with soil and groundwater pollution.
According to reports from Caixin, this “toxic site” is located in Tangzhen, Pudong New Area, and as of June 30 this year, it is still listed in the “Shanghai Municipal Soil Pollution Risk Control and Remediation List for Construction Land”.
A risk assessment report issued in August 2022 by the Shanghai Environmental Science Research Institute showed that the soil and groundwater at the site contain 16 types of pollutants, all exceeding the acceptable levels for human exposure. These pollutants include polycyclic aromatic hydrocarbons such as benzo(a)pyrene and benzo(a)anthracene, as well as copper, antimony, zinc, cobalt, nickel, trichloroethylene, 1,2-dichloropropane, among others. However, the developer did not disclose the environmental pollution issue when selling the properties.
In response to this revelation, many owners have demanded refunds from the developer. According to Zhang Yi, senior partner at Shanghai Huqin Jixin Law Firm, 104 owners have already entrusted their rights protection through petitions. Out of these, 102 owners are requesting refunds, including the return of the purchase price with interest and compensation for losses incurred. Of the 83 households, who have officially engaged the legal team, have filed lawsuits and the cases are now pending in court.
Public records indicate that Shanghai Pufa Hongwan’s developer is Shanghai Pufa Hongwan Real Estate Development Co., Ltd., a subsidiary of Shanghai Pufa Group, established in September 2014 in Pudong New Area, Shanghai. The legal representative is Chen Tong.
According to mainland media reports in June this year, multiple properties under Pufa Group have been embroiled in owner rights protection issues, including projects such as Pufa Hongwan, Pufa Tangcheng, and Pufa Youyuan. In early May, owners of Shangyangsi Shangyuan in Pudong New Area confronted the developer. Owners protested against false advertising, shoddy construction quality, unfair contract terms, and the developer’s arrogant attitude.
Industry insiders have pointed out that as a dominant local developer, the simultaneous outbreak of owner complaints in multiple properties within a short period of time reflects underlying internal management issues within the developer.