Hong Kong to spend HK$6.8 billion buying back fire-ravaged Tai Po flats

Hong Kong authorities will spend about HK$6.8 billion (US$870 million) to buy back homes damaged in the deadly Tai Po fire from flat owners, offering HK$8,000 to HK$10,500 per square foot as part of a long-term resettlement plan involving HK$4 billion in public funds. Deputy Financial Secretary Michael Wong Wai-lun unveiled the plan on Saturday, ruling out on-site redevelopment of Wang Fuk Court and adding that authorities were inclined to demolish seven of the estate’s eight buildings and redevelop the site as parks or other social facilities. Wong said the cash buyout and “flat-for-flat” exchanges would provide the fastest and most flexible solution, while authorities would handle post-acquisition matters at Wang Fuk Court, including legal and insurance issues. “The Wang Fuk Court fire is a special case of an exceptional nature. This one-off arrangement will not serve as a precedent,” he said. “We believe the acquisition price is sufficient for the affected households to relocate and secure long-term housing.” Wong added that the Wang Fuk Court fire was unprecedented, noting that displaced residents had suffered significant losses and faced immense challenges in their daily lives, warranting understanding and support from society. He also stressed the need to buy back the flats, saying no effective market mechanism could address the challenges or help the affected households. “Without strong government intervention, flat owners would find it extremely difficult to secure buyers for their homes, and the money they invested over the years could go up in smoke,” the deputy financial secretary said. Wong also noted that the acquisition was estimated to cost HK$6.8 billion, with the government needing to draw HK$4 billion from the public coffers after deducting a donation from the fire relief fund. The rehousing proposal came three months after the city’s deadliest fire in decades, which claimed 168 lives at the Wang Fuk Court residential complex last November. In a previous survey sent to affected residents, authorities had put the buy-back prices at between HK$6,000 and HK$8,000 per square foot, with the range based on pre-fire valuations by the Hong Kong Institute of Surveyors. Authorities launched the survey last month to gather opinions from displaced residents on nine long-term resettlement options, including on-site redevelopment, flat-for-flat exchanges and cash buyouts. Wong noted that 74 per cent of respondents had said they would consider accepting the government’s title acquisition, with 12 per cent ruling out the option and 14 per cent remaining undecided. The survey found that 22 per cent of households supported in-situ redevelopment but were open to other options. Meanwhile, 9 per cent of flat owners said they would only accept on-site redevelopment. The survey collected responses from 1,975 households, representing more than 99 per cent of all flat owners. Hundreds of Wang Fuk Court households were earlier reported to have signed a petition urging authorities to shorten the time for on-site redevelopment and allow residents to vote on the next step. Wang Chi House, the only one of Wang Fuk Court’s eight residential blocks left unscathed by the fire, will not be included in the acquisition plan. But Wong said the government would be willing to consider acquiring the flats in Wang Chi House as well if owners there could reach a “high degree of consensus”.