Hong Kong will spend up to HK$6.8 billion to buy out owners of flats damaged in a deadly 2025 fire, opting against rebuilding the charred estate.

HONG KONG: Authorities have announced a buy-out offer for owners who lost their homes in last year’s deadly housing complex fire. The decision opts against rebuilding the charred Wang Fuk Court apartment blocks as some residents had hoped.

The blaze killed 168 people and left thousands homeless in November. It stands as the world’s deadliest residential building fire since 1980.

Deputy Financial Secretary Michael Wong said Hong Kong will spend up to HK$6.8 billion (USD 870 million) to acquire property titles. Owners can accept compensation in cash or as part of a flat swap.

“The scale of the disaster is unprecedented, and currently there is no effective market mechanism to assist affected households,” Wong said at a press conference. He described the fire as a “special case of an exceptional nature” warranting government intervention.

Just over 1,700 owners will receive offers between USD 441,000 and USD 650,000, depending on their flat’s size. Wong stated it was “not appropriate” to rebuild the complex, a process estimated to take at least nine years.

The site will instead be torn down for a park or other community facilities. Seven of the estate’s eight towers suffered “irreversible” internal damage, while one building was left largely unscathed.

Only 9% of flat owners surveyed insisted on redevelopment as the only option. The buybacks will use an estimated USD 510 million in taxpayer money, with the remainder coming from a relief fund.

 The Sun Malaysia