Hong Kong plans to buy homes devastated in deadly high-rise fire

Hong Kong plans to buy homes devastated in deadly high-rise fire

Hong Kong Government Proposes Buyout for Fire-Damaged Housing Units

In response to the deadliest fire in Hong Kong's history, which claimed 168 lives in November 2025 at the Wang Fuk Court complex, the government has unveiled a resettlement plan offering to purchase homeownership rights from affected residents. The initiative aims to provide displaced occupants with financial compensation or alternative housing options, addressing prolonged uncertainty for thousands of residents.

The plan involves acquiring 1,700 units across seven fire-ravaged buildings for approximately HK$6.8 billion ($870 million). Public funds will cover HK$4 billion ($512 million), with the remainder sourced from a relief fund. Deputy Financial Secretary Michael Wong emphasized that repairing the damaged structures is not economically viable, and without government intervention, homeowners risk losing their investments entirely. The government also anticipates reducing public funding exposure by factoring in insurance payouts.

Residents may choose to sell their rights for cash or exchange them for government-subsidized housing under a designated policy. Those opting for relocation could begin selecting new homes as early as September 2026, while cash compensation is expected to be distributed by the third quarter of this year. A survey of affected households revealed 74% willingness to sell ownership rights, while 9% insisted on in-situ redevelopment—a process estimated to take a decade.

The government has opted against residential redevelopment at the fire site, instead proposing conversion to public spaces like parks or community facilities. This decision aligns with safety concerns and the scale of damage, which rendered the buildings irreparable.

The fire, attributed to substandard scaffolding materials used in a maintenance project, has disrupted a close-knit community in Tai Po. While authorities have made arrests, an independent investigation into the blaze's causes continues. The resettlement plan underscores the government's focus on stabilizing displaced residents while balancing fiscal responsibility and long-term urban planning priorities.