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Ng Kang-chung

Harvey Kong

Ada Li

Jiang Chuqin

Ambrose Li

Hong Kong continues to count the economic losses from the city’s deadliest fire in decades, with the disaster having destroyed 1,736 flats at Tai Po’s Wang Fuk Court, turned residents’ valuables into ashes and triggered the cancellation of banquets and mega-events.
Economists and industry leaders estimate the losses could run into billions of Hong Kong dollars, with the total market value of the flats alone amounting to an estimated HK$5 billion (US$642.3 million).
Last month’s blaze killed at least 160 people, including a firefighter, and left nearly 5,000 people homeless.
While the consequences were still unfolding, some experts noted there were few cases elsewhere in the world in recent decades comparable to the Tai Po fire in terms of circumstance and scale.
Others cited the Grenfell Tower blaze in west London in 2017 that claimed 72 lives and incurred £1.2 billion in financial losses, and a fire at a high-rise residential building in Shanghai in 2010 that led to 58 deaths and losses of at least 500 million yuan.
“The responsibility of the fire has not yet been clarified,” Eric Tso Tak-ming, chief vice-president of mReferral Mortgage Brokerage Services, said of the Tai Po disaster. “The compensation process has not yet started, so who should be responsible for paying the compensation and how much are all unknown factors.”


On November 26, amid very dry weather and a strong northeast monsoon, a small fire that started on a low floor at Wang Cheong House spread quickly across six other blocks of the 42-year-old estate, which was under renovation. Scaffolding nets that failed to meet fire safety standards and highly flammable styrofoam boards used to seal windows exacerbated the spread and intensity of the spiralling inferno.
Only one block, Wang Chi House, with 248 households, did not catch fire.
A couple in their 30s, who called themselves Mr and Mrs Chan and lived in a 400 sq ft flat in Wang Kin House, said their refurbished home had been completely destroyed in the blaze.
“The renovation, new furniture and electrical appliances cost us about HK$500,000 – they are all gone,” Mr Chan said.
The flat was a wedding gift from Mrs Chan’s mother, who lived in a 500 sq ft unit on a higher floor in the same block.
The family lost both flats worth a combined HK$5.5 million in the fire.


Based on the average resale price of a flat at HK$2.83 million, the 1,736 units of the seven blocks could be valued at nearly HK$5 billion, according to transaction records in the past year made available online by property consultancy firms.
Veteran building surveyor Vincent Ho Kui-ip estimated that repairing the seven blocks would cost about 60 per cent of the amount needed to tear them down and build new towers.
He said his estimate excluded the assessment that needed to be done prior to any repairs and laying the foundation for any new towers.
“I reckon the building’s public facilities are pretty much all written off. If they’re badly damaged, [renovating them] would practically be like doing a rebuild,” Ho said.
Hongkongers were devastated by the loss of life and the government announced three days of mourning. Many activities, celebrations, banquets, parties and mega-events were cancelled.
Gary Ng Cheuk-yan, senior economist at Natixis Corporate and Investment Bank, said the economic impact of event cancellations following the Tai Po blaze would depend on when activities could recover, with losses higher if negative sentiments dragged into the Christmas and New Year period.
“Based on the government’s projection of HK$46 billion in economic value from the event economy, a three-week halt could result in a loss of HK$265 million,” Ng said.
“The impact is still minimal relative to overall GDP growth, but it can hit specific sectors related to event spending and tourism.”
The annual Hong Kong Cyclothon scheduled for November 30 was cancelled. The debut of a light show and a Christmas market in Central as part of festive celebrations was postponed on November 28 and went ahead only last week. The much-anticipated Merry Balloon Hong Kong mega-event at the West Kowloon Cultural District was pushed back by 10 days to December 16.
Hong Kong Disneyland Resort also suspended its daily fireworks for 11 days until December 8. Singer Karen Mok Man-wai’s first performance at the 50,000-seat Kai Tak Stadium scheduled for December 20 was cancelled.

Some food and beverage operators said they had recorded a loss of bookings due to the blaze.
So Man-sing, the assistant general manager of London Restaurant in Mong Kok, said that following the fire, customers had cancelled bookings for about 800 tables in December, which could result in losses of about HK$3.2 million, or at least 20 per cent of the restaurant’s business that month.
So noted that the cancellations came from different groups, including government departments, hometown associations and private companies.
“I can only hope that when we enter January 1 in 2026, the economy will be better and society will be more harmonious, perhaps then we will have more opportunities for people to hold banquets,” he said.
Caspar Tsui Ying-wai, executive director of the Federation of Hong Kong Hotel Owners, said the sector was facing a slew of cancellations and deferrals of events booked at banquet halls, such as those held by private companies, government departments or other organisations.
But Tsui said he believed the revenue generated from hotel rooms in December would make up for the loss in business due to event cancellations.
“I don’t think there will be an uptick in business during this period. Everyone understands the social atmosphere, so we will adjust our expectations,” he said.
The government is working out monetary and settlement arrangements for the affected residents, while HK$3.7 billion in cash has been donated.
Additional reporting by Denise Tsang


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Hong Kong’s Tai Po fire tragedy

Destroyed homes, cancelled events: Hong Kong counts economic cost of Tai Po fire

The Tai Po fire destroyed seven of the eight buildings of Wang Fuk Court estate, with the devastated properties previously valued at a total of HK$5 billion. Photo: Karma Lo

Residents gather near the site of the fire to mourn, lay flowers and pray. Photo: Karma Lo

Hong Kong government ‘confident’ of finding site to rehouse Tai Po blaze residents

Authorities are prioritising collecting views from displaced Wang Fuk Court residents. Photo: Karma Lo

Deputy Financial Secretary Michael Wong has outlined several rehousing options for Wang Fuk Court residents. Photo: Nora Tam

Primary school near Hong Kong estate destroyed in deadly blaze hopes to move

The aftermath of the deadly fire at Wang Fuk Court in Tai Po. Photo: Jelly Tse

Principal Siu Ting says some parents have already said they will switch to other schools if their children are told to return to the campus near Wang Fuk Court. Photo: Sam Tsang

Pupils from Tai Po Baptist Public School learn in a makeshift classroom at City University. Photo: Sam Tsang

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Hong Kong

Hong Kong Economy

Wang Fuk Court flats that went up in flames worth about HK$5 billion, while losses from cancelled mega-events, banquets are likely to rise


Wang Fuk Court flats that went up in flames worth about HK$5 billion, while losses from cancelled mega-events, banquets are likely to rise.


Caspar Tsui Ying-wai

Natixis Corporate and Investment Bank

Federation of Hong Kong Hotel Owners

Destroyed homes, cancelled events: Hong Kong counts economic cost of Tai Po fire

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Wang Fuk Court flats that went up in flames worth about HK$5 billion, while losses from cancelled mega-events, banquets are likely to rise

Wang Fuk Court flats that went up in flames worth about HK$5 billion, while losses from cancelled mega-events, banquets are likely to rise