Govt confident in buyout plan for Wang Chi House, sets 75pc owner approval threshold

The government will proceed with a buyout offer for the undamaged Wang Chi House at the fire-ravaged Wang Fuk Court if at least 75 percent of owners agree to sell their property by June 30, Deputy Financial Secretary Michael Wong Wai-lun confirmed on Saturday. He stated that while the government has no backup plan if the threshold is not met, he is confident the target will be achieved.

Rationale behind the buyout

Speaking on a radio program, Wong explained that although Wang Chi House was not directly affected by the fire, a preliminary survey showed that 77 percent of its owners are willing to sell. He attributed this to several factors, including the psychological trauma experienced by residents and concerns over the building's future.

Owners are also facing complex challenges with deed of mutual covenant amendments and the prospect of steep maintenance costs. A management company estimated that necessary repairs for Wang Chi House alone would exceed HK$30 million. 

Wong clarified that a government "explanation team" is being sent not to "sell" the plan, but to ensure owners fully understand the pros and cons before making a decision.

Threshold and consequences

The 75 percent ownership threshold by the June 30 deadline is a firm requirement for the acquisition plan to proceed. 

Wong noted that while the deadline is serious, there will be flexibility for owners who miss it due to uncontrollable circumstances, such as flight delays. He expressed confidence in meeting the target, given the stable and considered interest shown by residents so far.

For the minority of owners who choose not to sell, Wong said the government would respect their decision. However, he warned they would have to face market mechanisms on their own, including high repair bills and unresolved deed issues. 

He did not rule out the possibility of invoking legislation to acquire the remaining units in the future to facilitate redevelopment, a process for which securing a 75 percent stake now would be a helpful foundation. 

If the 75 percent threshold is not met by the deadline, the entire acquisition proposal will be cancelled.

Housing options and support

Secretary for Housing Winnie Ho Wing-yin detailed the diverse and flexible options available to residents. Owners can choose a cash payout to buy a flat on the private market or a second-hand Home Ownership Scheme (HOS) flat.

Alternatively, they can opt for a "flat-for-flat" exchange, selecting a new unit from a specially arranged pool of about 3,900 flats in areas like Kowloon Bay, Kai Tak, Kam Sheung Road, and Fanling. 

This includes 1,500 units at a new development on Chung Nga Road in Tai Po, designed with layouts similar to those in Wang Fuk Court.

To ease the transition, the government is providing a monthly rental subsidy of HK$12,500 to all affected residents. 

This payment will continue until they receive the keys to their new home, plus an additional three months to allow for renovation and moving. Ho assured the public that this special sales arrangement for Wang Fuk Court residents would not affect the housing supply or queue for other HOS applicants.

Wong also firmly dismissed what he called malicious rumors, stating the government has no intention of selling the land for profit. He clarified that the site is planned for a park and community facilities, a common practice for disaster-affected sites globally.

 

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