The Hong Kong Special Administrative Region government will spend HK$6.8 billion ($870 million) to buy back from owners all the flats destroyed in November’s devastating fire at Wang Fuk Court in Tai Po — offering between HK$8,000 and HK$10,500 per square foot.
The acquisition plan was unveiled on Saturday as part of a long-term resettlement project for victims of the deadly blaze. The acquisition prices are set at HK$8,000 per square foot for properties that lack land premium clearance, and at HK$10,500 per square foot for those with premiums paid, Hong Kong Deputy Financial Secretary Michael Wong Wai-lun said during a news conference.
An SAR government survey conducted in January established the prices at HK$6,000 and HK$8,000 per square foot, respectively, a rate validated by the Hong Kong Institute of Surveyors.
According to Wong, the total acquisition cost is estimated at HK$6.8 billion, of which the Support Fund for Wang Fuk Court in Tai Po is expected to cover HK$2.8 billion, leaving public funds to foot the remaining HK$4 billion, which has been incorporated into the financial planning of the 2026-27 Budget.
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Hong Kong Secretary for Housing Winnie Ho Wing-yin said investigations have shown that the seven fire-ravaged 31-story buildings are structurally compromised beyond repair.
For residents of Wang Chi House — the only block spared by the flames — Wong clarified that the buyback package currently does not extend to the untouched tower, but further discussions are possible if its owners could reach a “high degree of consensus” to sell their properties to the government.
Resident options
A cash buyback is offered along with a flat-for-flat exchange option, according to the authorities.
Wong said the government’s offer of cash compensation, paired with the flat-for-flat exchange option, is the “fastest and most flexible” path forward for affected residents to secure long-term housing and resume normal lives. The authorities will assume responsibility for all post-acquisition legal and insurance complications.
According to Wong, the January survey, which covered 99 percent of all affected apartment owners, found 74 percent of the respondents willing to consider the government’s acquisition offer, while 12 percent ruled it out, and 14 percent said they remained undecided.
Ho said owners willing to sell their properties will receive a cash payout and can shop on the open market at once. Broadening the options, the authorities will also roll out a dedicated program that offers for sale Home Ownership Scheme (HOS) apartments and units provided by the Hong Kong Housing Society.
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The program has assembled a portfolio of 10 housing development projects citywide, totaling 3,900 units — tripling the number of the affected households at Wang Fuk Court.
Ho said the government’s acquisition price is sufficient to purchase flats in most of the projects under the sales program.
Wong also ruled out the on-site redevelopment of Wang Fuk Court, saying the land would be repurposed for parks and other community facilities.
Resident options
A cash buyback is offered along with a flat-for-flat exchange option, according to the authorities.
Wong said the government’s offer of cash compensation, paired with the flat-for-flat exchange option, is the “fastest and most flexible” path forward for affected residents to secure long-term housing and resume normal lives. The authorities will assume responsibility for all post-acquisition legal and insurance complications.
According to Wong, the January survey, which covered 99 percent of all affected apartment owners, found 74 percent of the respondents willing to consider the government’s acquisition offer, while 12 percent ruled it out, and 14 percent said they remained undecided.
Ho said owners willing to sell their properties will receive a cash payout and can shop on the open market at once. Broadening the options, the authorities will also roll out a dedicated program that offers for sale Home Ownership Scheme (HOS) apartments and units provided by the Hong Kong Housing Society.
The program has assembled a portfolio of 10 housing development projects citywide, totaling 3,900 units — tripling the number of the affected households at Wang Fuk Court.
Ho said the government’s acquisition price is sufficient to purchase flats in most of the projects under the sales program.
Wong also ruled out the on-site redevelopment of Wang Fuk Court, saying the land would be repurposed for parks and other community facilities.
READ MORE: HK's first public hearing on Tai Po fire scheduled for March
Lawmaker Stanley Ng Chau-pei also supported the plan.
He praised the package as “grounded in feelings (for the victims), reason and the law”, having presented residents with multiple workable choices, and for “wisely using” public funds to raise the acquisition price.
“The package is designed in a way that’s not just resettling Wang Fuk Court’s residents, but that lays to rest the concerns and anxieties of all people across Hong Kong who’ve been closely watching the situation,” Ng said.
Contact the writers at wanqing@chinadailyhk.com
