Hong Kong's Bold HK$4 Billion Plan to Rebuild After Tragic Fire

Hong Kong plans to allocate HK$4 billion to buy out residents of Wang Fuk Court, a high-rise housing complex devastated by a fatal fire. The initiative aims to provide sufficient funds for affected residents to find alternative housing solutions. A relief fund and insurance compensation offset the total expense.

Hong Kong has revealed plans to spend approximately HK$4 billion to purchase properties from residents of a high-rise complex devastated by a massive fire in November, claiming more than 160 lives. The government, in a bid to provide compensation, has set a price of HK$8,000 per square foot without a land premium payment and HK$10,500 per square foot with a payment.

According to Wong Wai-lun, the deputy financial secretary, the proposed prices aim to enable the affected individuals to relocate and secure long-term housing stability. The government's compensation package includes an apartment exchange scheme for the 4,600 tenants displaced by the fire at Wang Fuk Court.

Officials estimate the total cost of the buyout at HK$6.8 billion, with HK$2.8 billion to be covered by a relief fund. The overall expenditure could decrease further when insurance compensation is factored into the equation.

(With inputs from agencies.)