Hong Kong plans to buy homes devastated in deadly high-rise fire

Hong Kong proposes to spend about HK$4 billion ($512 million) to ​buy out the owners of homes in a high-rise housing complex ravaged ‌by a massive fire to resettle nearly 2,000 affected households.

The prices ​offered will be HK$8,000 per sq ft without ⁠a land premium payment, and HK$10,500 per sq ft for those receiving such a payment, authorities said on Saturday (February 21), three months after the deadly fire killed 168 ‌in November.

Residents of Wang Fuk Court in Hong Kong’s northern Tai Po district have been scrambling to find a new ‌place to live.

“We believe the proposed price is sufficient ‌for ⁠the affected residents to relocate and secure long-term housing,” said Wong ⁠Wai-lun, Hong Kong’s deputy financial secretary, who added selling the property to the government is not “mandatory”.

The total outlay, estimated at HK$6.8 billion, will drop by HK$2.8 billion after a ​contribution from a relief ‌fund and could be lower still after insurance compensation is factored in, the officials said.

‘Impossible’ to satisfy everyone

A Social Welfare Department survey last month showed that 74% of Wang Fuk Court owners would consider ‌accepting the buyout of their property rights, while 9% would only ​accept on-site redevelopment, officials in the Asian financial hub told a media briefing.

“It is just that in formulating the ⁠government’s package, it is impossible to satisfy the wish of everyone,” Mr. Wong said.

The government ruled out the possibility of using the original site for future ‌residential purposes but is considering building community facilities such as a park at the site.

The government also offered an apartment exchange programme for the 4,600 affected tenants, who lived in nearly 2,000 housing units at the complex.

Hong Kong’s Housing Bureau has rolled out a scheme offering 3,900 housing units across 10 subsidised housing projects for such an exchange, Secretary ‌for Housing Winnie Ho said.

An affected resident surnamed Cheung told Reuters he ​is inclined to accept the flat exchange plan because it will be harder to secure a home with cash, as property ⁠prices have since risen in the Tai Po area.

As soon as May ⁠or June, the owners who are prepared to accept the arrangement will be able to sign provisional agreements with the government, ‌according to Mr. Wong, with the first payment from the government to be delivered in the third quarter this year.