Hong Kong Officials Announce $870M Buyback Plan for Fire Victims’ Homes

Hong Kong authorities revealed Saturday they will purchase apartment ownership rights from victims of November's deadly fire that killed 168 people. The government plans to spend $870 million to buy back around 1,700 units and demolish the seven damaged buildings rather than attempt repairs.

HONG KONG (AP) — Authorities in Hong Kong announced Saturday a comprehensive resettlement strategy for thousands of residents forced from their homes following last November’s catastrophic fire, the region’s most fatal in decades. The plan centers on purchasing property ownership rights directly from those affected by the tragedy.

Nearly three months have passed since the devastating fire consumed seven residential towers at Wang Fuk Court, leaving former residents in limbo about their housing future. These displaced families continue adapting to temporary living situations spread throughout different neighborhoods, supported by government rental assistance to help property owners cover interim housing costs.

During Saturday’s press briefing, authorities outlined how property owners from the affected buildings can transfer their ownership rights to the government for monetary compensation, allowing them to secure new housing of their choosing or purchase units through designated government programs. Those preferring to avoid large cash transactions can opt for direct apartment exchanges through the same policy framework.

Administrative officials calculate the buyback program for approximately 1,700 residential units will require roughly 6.8 billion Hong Kong dollars ($870 million), with public funding covering about 4 billion Hong Kong dollars ($512 million) and relief contributions making up the remainder.

Deputy Financial Secretary Michael Wong indicated the administration favors tearing down all seven structures, with no plans to rebuild residential housing at the location. The site could instead become green space or community amenities, he noted.

Wong explained that restoring the fire-damaged structures would neither be practical nor economically feasible, and without government action, property owners would struggle to find market buyers for their units.

“In other words, the funds they have invested in these units over the years could turn to nothing,” he said.

The timeline calls for reaching out to property owners in March, with compensation payments targeted for the third quarter of this year, Wong stated.

These proposals emerged following surveys of affected residents regarding their preferences. Wong reported that 74% of survey participants expressed willingness to consider transferring their ownership rights to the government. Meanwhile, approximately 9% of respondents indicated they would only accept on-site redevelopment, a process the government estimates would require roughly ten years to complete.

The November 26, 2025 fire claimed 168 lives and devastated a tight-knit community in Tai Po’s suburban area. Officials determined that inferior scaffold netting and foam materials used during maintenance work caused the flames to spread rapidly. While several arrests have occurred, an independent panel continues examining the incident’s underlying causes.