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Matthew Cheng

Harvey Kong

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 or 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.
Wong added that the Tai Po 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 expected 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 funding] will need Legislative Council approval, and I believe Legco will perform its gatekeeping role,” he said, adding that the government had sought to balance the needs of all parties and invest public funds prudently.
A portion of the government funding could potentially be recouped through insurance payouts, after authorities acquired the properties and became the insured party, he said.
But Wong noted that the final amount of compensation from insurance providers would depend on further assessment.
The plan puts buy-back prices for properties without land premiums at HK$8,000 per square foot, equating to HK$3.45 million to HK$3.86 million per flat depending on property size.
Properties with land premiums would be valued at HK$10,500 per square foot, meaning such flats could be acquired for between HK$4.53 million and HK$5.07 million.
Government-subsidised homes, such as those at Wang Fuk Court, are sold at discount prices, requiring flat owners to pay a land premium before selling the flats on the open market.
The policy’s flat-for-flat option will allow affected residents to exchange their homes for new subsidised flats at 10 designated projects under the Housing Authority or the Housing Society through a special sales exercise.
The designated sites include the Chung Nga Road West project, the first phase of which is set to provide up to 900 flats by 2029.
The earliest available choices include flats at Shing Chi Court in Kowloon Bay and the Pak Wo Road project in Fanling, with intakes scheduled for the fourth quarter of this year.
Wong said owners would need to indicate their preferences by August 31, warning that certain options would not be available after the deadline.
He noted that more than 200 flats in Wang Fuk Court were currently mortgaged, prompting authorities to liaise with the banks to allow such owners to use their new homes as collateral under the resettlement plan.




The government will also establish a 100-member task force next month to explain the options to owners, with the aim of having provisional agreements signed as early as May or June, so affected residents can receive payment in the third quarter.
Wong added that the acquisition and demolition could take up to five years, and the cleared site would then be converted into a park or community facilities.
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.
Authorities launched a 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.
Wong said authorities had decided to drop the option of in-situ redevelopment as such works could take at least nine to 10 years and would be a long and drawn-out process.
“In fact, if residents live somewhere else for nine to 10 years, they are likely to establish ties there,” he said. “So our final decision is to exclude on-site redevelopment as an option.”
The government also ruled out redeveloping Wang Fuk Court at the adjacent Kwong Fuk Park, which could potentially yield more flats by 2033 than the Chung Nga Road West proposal.

A government insider explained that such a move would require relocating the park and a nearby gas station, a process that could take years.
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”.
Home affairs minister Alice Mak Mei-kuen said Wang Chi House residents would be able to return to their homes in three to four months.
But the timeline would depend on the progress of repair works for lifts and pipeworks, among other common facilities, and the arrangement of building management, she said.
Asked how the government would handle owners who refused to sell their flats, Wong stressed that the buy-back option was entirely voluntary, but warned that those opting out could face difficulties, as there were few market mechanisms for resolving the issue.
“It is private property. If any Wang Fuk Court resident does not accept this proposal, I will not criticise them. They may have their own reasons,” he said. “But I advise them to seriously consider this offer.”
The deputy financial secretary said it was possible that ownership could be acquired through legislation, but such an approach required careful consideration and adherence to the Basic Law, the city’s mini-constitution, which safeguards private ownership.
“To reclaim the flats by legislation is not our focus at the moment,” Wong said. “But if it remains unresolved after a period of time, or we have no other way forward, we may have to explore the possibility.”
Legco’s housing panel will hold a special meeting on Monday to debate the government’s resettlement proposal.


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Hong Kong’s Tai Po fire tragedy

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

The Tai Po fire claimed 168 lives. Photo: Dickson Lee

Authorities launched a survey last month to gather opinions from displaced residents on nine long-term resettlement options. Photo: Dickson Lee

Deputy Financial Secretary Michael Wong (centre) has said that the buy-back option is entirely voluntary, but warned that those opting out may face difficulties. Photo: Handout

Tai Po fire owners to get buy-back offer of up to about HK$10,000 per square foot

The deadly fire killed 168 people at Wang Fuk Court last November. Photo: Sam Tsang

An insider has said Deputy Financial Secretary Michael Wong could outline the proposal as early as Saturday. Photo: Karma Lo

85% of insurance claims related to Tai Po fire settled, totalling HK$510 million

A man in Tai Po’s Yuen Chau Tsai Park, with the charred buildings of Wang Fuk Court in the background. Photo: Elson Li

An independent committee, led by Justice David Lok, has been set up. Photo: Edmond So

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Deputy financial secretary says government offering HK$8,000 or HK$10,500 per square foot and will draw HK$4 billion from public funds


Deputy financial secretary says government offering HK$8,000 or HK$10,500 per square foot and will draw HK$4 billion from public funds.


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

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Deputy financial secretary says government offering HK$8,000 or HK$10,500 per square foot and will draw HK$4 billion from public funds

Deputy financial secretary says government offering HK$8,000 or HK$10,500 per square foot and will draw HK$4 billion from public funds