The government said on Saturday that it plans to acquire ownership of all the flats directly affected by the Wang Fuk Court inferno in November as part of a long-term rehousing option for the estate's residents.

Deputy Financial Secretary Michael Wong, who heads the task force on emergency accommodation arrangements for the residents, said the buyout plan covering flats in the seven blocks hit by the devastating fire would cost some HK$6.8 billion.

Buyout offers for units for which the land premium had not been paid would be HK$8,000 per square foot and HK$10,500 for those with the premium paid up.

The residents will also be given special options to use the cash to buy subsidised flats, and the fastest resettlement option will be at an estate in Kowloon Bay into which residents will be able to move by the end of the year.

As an alternative to the cash buyout, the government will offer a flat-for-flat exchange for units at other subsidised housing estates.

Wong said a questionnaire sent to the residents about rehousing proposals found a government acquisition offer would be acceptable to 74 percent of the respondents, with most of them wanting a quick resolution.

If the government does not step in, he said, it is highly likely that all the money that the residents had invested in the flats would completely go to waste.

"At this moment, there's no effective market mechanism that can help the affected residents. If the government doesn't intervene in a strong manner, it'd be hard for homeowners to find buyers for the Wang Fuk Court flats," Wong said at a press conference.

"Once the government takes ownership of the flats, we will take over and handle all the legal and insurance risks as well as all the uncertainty regarding the time needed as well as the issues that crop up afterwards."

Wong said the unprecedented blaze, which claimed 168 lives, was a very special incident necessitating a one-off solution and that the government's plan would not set a precedent.

He said HK$2.8 billion of the HK$6.8 billion cost to acquire all the flats would come from the fund that was set up to receive public donations following the fire, and the remaining HK$4 billion would come from the public coffers.

Wong said the options were final and that homeowners needed to make a decision by the end of August, unless they have exceptional situations like needing time to settle issues such as over inheritance.

He said those willing to sell their property rights could get the money in the third quarter of this year.

"We hope that by May or June... the owners who are prepared to accept the arrangement will be able to sign provisional agreements with the government," Wong said.

"After that, there will be certain conveyancing procedures they have to follow. So we are looking forward to be able to pay the owners the acquisition money in the third quarter of this year."

Wong added that it was not mandatory for homeowners to agree to the acquisition plan, but he hoped they could have a serious think about what he described as the favourable options made available to them.

The eighth block at the estate, Wang Chi House, that was not affected by the deadly blaze is not part of the acquisition plan.

Wong said unless homeowners in that block reach a consensus "of a high level", officials will exclude it from the plan.

If more than half of them are interested in joining the proffered plan, he added, officials can embark on discussions with them.

Wong said officials were aware that many Wang Fuk Court residents would like to return to their old homes to have a look.

He said officials were actively looking into the matter and would make an announcement promptly once there was progress.

Wong stressed the government was inclined towards demolishing the seven blocks hit by the fire after acquisition, out of safety concerns.

He said the administration would not be building residential facilities on the site of the estate but planned to put a park or other public facilities on the plot.



Edited by Thomas McAlinden