Hong Kong authorities have announced a comprehensive resettlement plan for thousands of residents displaced by the city’s deadliest fire in decades, proposing to repurchase homeownership rights from affected families nearly three months after the devastating blaze in November last year.
The fire, which tore through seven residential blocks at Wang Fuk Court, left former occupants uncertain about their long-term housing prospects. Since the incident, many residents have been living in temporary accommodations across different districts, supported by government rental subsidies intended to ease the burden of short-term relocation.
At a press briefing on Saturday, officials outlined a scheme allowing homeowners from the damaged buildings to sell their ownership rights back to the government in exchange for cash compensation, enabling them to secure housing independently. Alternatively, residents may opt for a direct flat-exchange arrangement under a dedicated government housing policy, allowing them to move into replacement apartments without handling large cash payouts.
The administration estimates that purchasing the rights of roughly 1,700 housing units will cost around HK$6.8 billion (about USD 870 million). Of this amount, approximately HK$4 billion (USD 512 million) will come from public funds, while the remainder will be financed through a relief fund. Authorities added that the eventual public expenditure could decrease once insurance compensation is factored into the overall cost.
Deputy Financial Secretary Michael Wong said the government is inclined to demolish the seven severely damaged buildings, concluding that repairing them is neither technically practical nor economically viable. Instead of rebuilding residential housing on the site, officials are considering converting the area into public amenities such as a park or community facilities. Wong warned that without government intervention, homeowners might struggle to sell their properties, potentially losing the value of investments accumulated over many years.
The government plans to begin contacting homeowners in March, with compensation payments expected to start in the third quarter of the year. Residents choosing the apartment exchange option may begin selecting new homes as early as September.
The proposal follows a survey conducted among affected residents, which showed that about 74 percent were open to selling their ownership rights to the government. Around nine percent indicated they would prefer redevelopment at the original site, although officials estimate that rebuilding residential housing there could take up to a decade.
Some residents remain uncertain about the plan. Cyrus Ng, whose elderly parents lived in one of the destroyed buildings, said his family had hoped to return after repairs but had not been allowed to assess the extent of damage to their apartment. He also questioned the government’s timeline estimates for redevelopment and called for greater transparency.
The November 26, 2025 blaze claimed 168 lives and devastated a tightly knit community in Tai Po. Authorities have attributed the rapid spread of the fire to substandard scaffold netting and foam materials used during maintenance work. While several arrests have been made, an independent investigation into the incident remains ongoing.
