CK Asset's Anderson Road residential project was earlier found to have been involved in corruption related to the residential buildings' steel reinforcement.
The Buildings Department accepted corrective measures for three of the six total buildings on site, while the remaining three are set to be demolished.
The Anderson Road project was initially set for completion within this year.
But an investigation conducted by the Independent Commission Against Corruption last year found the engineering subcontractor involved with the buildings' steel reinforcement work bribed the main contractor to reduce relevant reinforcement in the structures by 10 percent.
A year later, the Buildings Department sought professional help to fix the situation, with the government having earlier accepted corrective measures for three buildings in May this year.
As for the remaining three buildings, they have been set for demolition and will be later reconstructed.
CK Asset said demolition was the most efficient and cost-effective decision.
This as China Railway Engineering (Hong Kong) Limited will take over the project as its new contractor.
The Anderson Road project initially offered close to 3,000 residential units.
CK Asset attempted to apply for pre-sale consents from the government two years ago but was rejected.
Meanwhile, the Buildings Department decided to bring a total of 205 prosecutions against the contractors and individuals related to the case.