About 100 homeowners at fire-ravaged Wang Fuk Court in Hong Kong have yet to accept the government’s buy-back offer that expires next week, Deputy Financial Secretary Michael Wong Wai-lun has said, stressing that the sign-up period will not be extended.
“The deadline is a very serious timeline ... it will not be extended, nor will better terms and a higher acquisition price suddenly be offered,” Wong told a radio programme on Sunday.
“I hope [the homeowners] will understand and take the appropriate action within the remaining eight days.”
He emphasised that given the government could later turn to legal means to acquire any remaining flats, the compensation offered under statutory requirements would be substantially lower.
“Under the statutory mechanism, compensation is based on the market value at the time of acquisition. That would mean the value after the fire ... which is substantially lower than the government’s offer of HK$8,000 or HK$10,500 [US$1,020 or US$1,340] per square foot,” he said.
The hold-outs, accounting for 5 per cent of all homeowners at the estate, have until August 31 to submit acceptance letters. After selling their homes and receiving compensation, they can either buy a property on the open market or join a special sales programme to acquire a new subsidised flat, using cash or a flat-for-flat arrangement.
As of August 21, 1,878 households had submitted acceptance letters, accounting for 94.7 per cent of flats, while 74.1 per cent of owners had already signed sale and purchase agreements with the government, according to Wong.
He noted that 91.5 per cent of owners in Wang Chi House – the only block undamaged by the fire – had accepted the offer, and 67.7 per cent had signed sale and purchase agreements.
The city’s deadliest blaze in decades swept through seven of the Tai Po estate’s eight blocks last November, killing 168 people and displacing about 5,000 residents.
The government announced in February it would spend about HK$6.8 billion to acquire the affected flats, using HK$4 billion in public money and HK$2.8 billion from a donation-backed support fund.
The government later extended the offer to owners at Wang Chi House, adding another HK$1 billion to the cost of the scheme.
Wong stressed that the government would not extend the sign-up period as subsequent work, including flat selection for the special sales scheme, could not be delayed given rehousing must be swiftly arranged.
He acknowledged that some owners were discontented with the acquisition price, but urged them to accept the offer.
Since the use of public money required legislative approval, the government would not raise the acquisition price at the last minute as private developers might, he added.
“This arrangement has fully balanced various factors,” Wong said. “It is a highly compassionate approach.”
The government would consider using legal means to acquire any remaining flats but would not pursue this avenue until next year at the earliest, he said.
Earlier, authorities released the sales brochure and price list for the 10 subsidised housing projects under the special sales programme. Prices for the 4,400 flats ranged from HK$1.51 million to HK$5.37 million.
The most expensive flats are at Hemma Sapphire, the Housing Authority’s Anderson Road Quarry site project in Kwun Tong, while the lowest-priced homes are at Yu Fung Court in Tung Chung.
Two new projects in Tai Po, scheduled for completion in 2029 and 2031, will offer more than 1,500 flats priced between HK$2.71 million and HK$3.69 million.
Secretary for Housing Winnie Ho Wing-yin said a balloting exercise would be conducted next month to determine the order of flat selection, allowing the first batch of owners to choose homes by the end of the month.
She expected about 50 to 60 owners could select flats each day, adding that government outreach teams could accompany them during the process.
Ho said about 2,800 flats under the programme, or 60 per cent, were more than 400 sq ft and would be sufficient to meet the needs of the affected families.
Around 330 homeowners had already opted for a cash offer, with some purchasing a flat on the second-hand Home Ownership Scheme (HOS) market, Ho said.
Wong emphasised that if homeowners were unable to select a preferred flat in the special sales programme, authorities would allow them to take a cash payment instead, which they could then use to buy a second-hand HOS flat within two years or a property on the private market.
Betty Ho, a resident of Wang Shing House, is among the homeowners who have refused to sell to the government.
“I started paying my mortgage in my twenties. There is no reason why, after I have finished paying for my home, the government can now just take it away,” she said.
Dissatisfied with the government’s consultation on rehousing options, Ho remained adamant that in situ resettlement should have been included. She said she would reject the buy-back offer.
Ho, who is currently living in government-arranged transitional housing, said authorities had not told her what would happen if she continued to decline the offer.
“I cannot plan my next step, and I do not know where I will be living,” she added. “If they force me to move out of the transitional housing, I will have nowhere to stay.” -- SOUTH CHINA MORNING POST
