Nearly three months after the major fire at Hong Fuk Court in Tai Po, the Hong Kong government has announced a long-term resettlement plan, proposing to buy residents’ property rights with cash. The estimated total cost is HK$6.8 billion (about RM3.39 billion). Residents may also choose a 'flat-for-flat' exchange.
The government also mentioned that after the demolition of the Hong Fuk Court buildings, there will be no on-site reconstruction.
According to Central News Agency reports, on November 26 last year, a fire broke out at Hong Fuk Court and lasted for 43 hours, severely damaging seven out of the eight blocks. According to a compilation of reports from Hong Kong media, government officials held a press conference on the 21st to explain the long-term resettlement plan.
The government’s proposal includes buying back property rights with cash. For flats with premium unpaid, the buyback price is HK$8,000 per square foot; for flats with premium paid, it is HK$10,500 per square foot. Residents can use the cash obtained from selling their property rights to purchase other homes.
Hong Fuk Court is a subsidized housing project launched years ago by the Hong Kong government, sold at a discount compared to private housing. 'Premium unpaid' means the owner has not yet paid back the government’s initial discount, so the buyback price is relatively lower. 'Premium paid' means the owner has already paid the government the ‘discount difference’, so the government’s buyback price is relatively higher.
The government also proposes that residents can choose a 'flat-for-flat' option. The government will offer dozens of subsidized housing projects for residents to select from.
Hong Kong Financial Secretary Deputy Paul Chan Mo-po stated that if the government were to acquire all over 1,700 property rights from the seven blocks, it would require HK$6.8 billion. The buyback proposal “has no coercive element whatsoever” and is “an attractive option” for residents to consider.
● No Immediate Collapse Risk, but Not Suitable for Living
Secretary for Housing Winnie Ho stated that the seven Hong Fuk Court buildings, after being subjected to high temperatures and cooling from firefighting water, have suffered large numbers of microcracks inside the concrete. The risk of water seepage and corrosion in the future is much higher than in ordinary buildings, making long-term maintenance extremely difficult and costly. After assessment, while there is no risk of imminent collapse, the buildings are no longer suitable for habitation and will need to be demolished in the long run.
Paul Chan Mo-po added that after the seven buildings are demolished, they will not be rebuilt as residential housing. The site may be converted into a park or community facilities.