Hong Kong authorities have said they will expand their buyout plan to include flats in the only block of Wang Fuk Court untouched by the deadly fire if three-quarters of owners agree to sell their properties.
Deputy Financial Secretary Michael Wong announced the plan at a press conference on Tuesday, about two months after the government unveiled the initial buyout plan covering the seven fire-hit buildings in the housing estate, but not Wang Chi House.
The purchase price for Wang Chi House will be in line with the other seven blocks, at HK$8,000 or HK$10,500 per square foot, depending on whether premiums have been paid for the homes.
Wong also said a preliminary survey suggested 77 percent of Wang Chi House residents were willing to sell their homes to the government for cash or move to another government-subsidized property under an exchange exercise.
“We think the proposal is a good proposal for them… but that doesn’t mean we want to force them to accept the proposal. At the end of the day, it’s their decision,” he said.
“But we think what we have on the table is very reasonable and should actually be quite attractive.”
He said the owners faced a number of difficulties and uncertainties, including the wait before they could return to residential property in Tai Po, as well as issues involving the land agreement and deed, high maintenance costs and complex insurance issues.
Some owners were concerned about the emotional toll of the repossession and the drop in property values, he added.
The total cost of buying the 248 units at Wang Chi House will be about HK$1 billion, he said.
threshold
Wong said a government liaison team had contacted 99 percent of Wang Chi House flat owners, 77 percent of whom were willing to sell their flats to the government.
“We believe the 75 percent threshold adequately reflects the requirement of a high degree of consensus,” Wong said.
Speaking at the same press conference, Housing Secretary Winnie Ho said 14 percent of Wang Chi flat owners were still considering the offer, while the remaining 9 percent were unwilling to sell their properties.
Those who agree to the purchase will have to sign and submit a letter of acceptance to the government. Those who will do this before June 30 will have special priority to choose another apartment offered by the government, while the deadline to express interest is August 31.
While the government respects private property rights, it would also offer the option of purchase if the threshold is reached, the deputy minister said.
If the final number of purchase agreements does not meet the threshold, the government “has the right” to undo the purchase scheme.
Wong said in February that the government would consider whether special legislation would be needed to deal with cases of owners refusing to sell their property rights.
However, on Tuesday, he said the authorities have yet to come up with a concrete legislative plan.
He pledged that the government will continue to uphold the principle of respecting private property rights under Hong Kong’s mini-constitution, the Basic Law, and provide compensation for the purchases.
