Hong Kong homeowners resist government buyout offer at fire-damaged Tai Po estate

With the clock ticking to the August 31 cut-off date, the South China Morning Post spoke to six residents determined not to sell their homes at the devastated Tai Po estate, even though experts see the government’s offer as generous and compulsory acquisition would result in a lower price.

They are among the 3.5 per cent of homeowners – about 70 people – who have not accepted the offer, under which the government will buy flats at HK$8,000 (US$1,020) or HK$10,500 per square foot, depending on whether the land premium has been paid.

Vincent Ho Kui-yip, a former president of the Hong Kong Institute of Surveyors, described the acquisition price as a “generous offer”, noting that Wang Fuk Court was more than four decades old. The proposed price exceeded recent transaction levels for other Home Ownership Scheme flats in the same district, he added.

Pre-fire estimates by the institute put the market value of flats in the eight-block estate at about HK$6,000 to HK$8,000 per square foot.

Owners can use the cash to buy a flat on the open market or join a special sales programme for a subsidised home, using cash or a flat-for-flat exchange.