Hong Kong authorities have proposed a multi-billion-dollar plan to buy out homeowners affected by a devastating high-rise fire that killed more than 160 people in November.

Officials said the government would spend about HK$4 billion ($512 million) to acquire affected units at Wang Fuk Court, a residential complex that housed thousands of residents.

Compensation and Pricing Details

Under the proposal, homeowners would be offered HK$8,000 per square foot without a land premium, and HK$10,500 per square foot for those required to pay such premiums.

Deputy Financial Secretary Wong Wai-lun said the compensation levels were designed to enable residents to relocate and secure long-term housing.

“We believe the proposed price is sufficient for the affected residents to relocate and secure long-term housing,” he told a media briefing.

Support for Thousands of Residents

The government has also introduced an apartment exchange programme for around 4,600 tenants who lived in nearly 2,000 units in the complex.

Officials said the broader financial package could reach HK$6.8 billion, though the final cost is expected to fall after contributions from a relief fund and insurance payouts are taken into account.

Aftermath of a Deadly Blaze

The buyout plan comes as authorities seek to address the long-term housing needs of survivors following one of Hong Kong’s deadliest residential fires in recent years.

The proposal marks a significant intervention in the city’s property market as officials attempt to stabilise the situation and provide certainty to affected families.

(with inputs from Reuters)