Hong Kong plans to buy homes destroyed by deadly high-rise fire

Hong Kong has proposed spending nearly HK$4 billion ($512 million) to buy out the owners of a high-rise housing complex destroyed by a massive fire to resettle nearly 2,000 affected families.

Officials said on Saturday (Feb 21), three months after a deadly fire in November killed 168 people, that HK$8,000 per square foot would be offered without a land premium payment and HK$10,500 for those receiving such payment.

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

“We believe the proposed price is sufficient for affected residents to relocate and secure long-term housing,” said Hong Kong’s Deputy Financial Secretary Wang Wai-lun, who added that it was “not mandatory” to sell the property to the government.

Officials said the total cost, estimated at HK$6.8 billion, would be reduced by HK$2.8 billion after the contribution from the relief fund and even lower after factoring in insurance compensation.

‘Impossible’ to satisfy everyone

A Social Welfare Department survey last month found 74% of Wong Fuk Court owners would agree to buy their property rights, while only 9% would agree to on-site redevelopment, officials at the Asian financial center told a media conference.

“In formulating the government’s package, it is impossible to satisfy everyone’s desire,” Mr Wang said.

The government has ruled out using the original site for future residential purposes, but is considering building community facilities such as a park on the site.

The government also offered an apartment exchange program for the 4,600 affected tenants living in nearly 2,000 housing units in the complex.

The Hong Kong Housing Bureau has drawn up a scheme to provide 3,900 housing units in 10 subsidized housing projects for such exchanges, said Housing Secretary Winnie Ho.

Cheung, an aggrieved resident, said Reuters He is inclined to accept the flat exchange plan because it is difficult to secure a house with cash as property prices in the Tai Po area have risen.

In May or June, employers willing to accept the arrangements will be able to sign provisional contracts with the government, according to Mr. Wang, who said the first payment from the government will be disbursed in the third quarter of this year.