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Hong Kong warns Wang Fuk Court buy-back deadline will not be extended
Deputy Financial Secretary Michael Wong Wai-lun said compensation under a statutory mechanism would be based on the market value at later acquisition and could be substantially lower than the government’s HK$8,000 to HK$10,500 per square foot offer.
Hong Kong authorities said they will not extend the deadline for homeowners at the fire-ravaged Wang Fuk Court estate to accept the government’s buy-back offer, with about 100 owners, or 5 percent, still undecided a week before the cutoff. Housing decisions for the displaced residents face added risk if owners miss the August 31 deadline, Deputy Financial Secretary Michael Wong Wai-lun said on a radio programme, emphasizing that no better terms or higher acquisition prices would be offered.
Wong warned that compensation at a later stage would be substantially lower because it would be calculated under a statutory mechanism based on the market value at the time of acquisition. He said that approach would likely result in a lower valuation after the fire than the government’s current offer of HK$8,000 or HK$10,500 per square foot.
The city’s deadliest blaze in decades struck Wang Fuk Court last December, sweeping through seven of the estate’s eight blocks, killing 168 people and displacing about 5,000 residents. Owners have until August 31 to submit acceptance letters.
After selling their flats and receiving compensation, homeowners may either buy a property on the open market or join a special sales programme for a new subsidised flat, with options to use cash or pursue a flat-for-flat arrangement, according to the government’s framework described by SCMP Economy.