Hung Fuk Estate flat selection begins Tuesday as HK$7.8 billion acquisition enters next phase

Hung Fuk Estate owners began selecting replacement flats in Kwun Tong on Tuesday (September 29), with only 35 households scheduled to make their choices on the first day. The government estimates the total cost of the acquisition scheme at HK$7.8 billion, of which HK$5 billion will come from public funds and HK$2.8 billion from the Tai Po Hung Fuk Estate Assistance Fund.

The HK$7.8 billion comprises two parts. After last year's fire, the government initially announced the acquisition of all about 1,736 flats in the seven blocks from Blocks A to G, at an estimated cost of HK$6.8 billion. The 248 flats in Hung Chi Court (Block H) were later added to the scheme, requiring an additional HK$1 billion. The Finance Committee of the Legislative Council approved the related funding on July 17. The public funding comprises the HK$4 billion set aside in the Budget, plus this additional HK$1 billion. Acquisition prices are calculated according to saleable area: HK$8,000 per square foot for flats with an unpaid land premium and HK$10,500 per square foot for flats with a paid land premium. The HK$7.8 billion estimate assumes every flat is sold, while actual spending will depend on the final number of owners who sign agreements.

The deadline for returning acquisition letters has passed. At 5pm on August 31, the Housing Bureau said 1,967 households had returned their “letters accepting the acquisition offer”, representing 99.1% of the estate's 1,984 households. After letters bearing a postmark dated August 31 or earlier were included, the figure rose to 1,971 households, or 99.3%. Both figures are correct; they were based on different statistical cut-off times. As for the sale and purchase agreements, 1,702 households, or 85.8%, had signed by September 14. Deputy Financial Secretary Michael Wong Wai-lun said on a radio programme on September 23 that more than 88% of owners had signed as of September 22, but did not specify the denominator.

The flats available for selection comprise more than 4,400 units across 10 projects, including eight Housing Authority estates and two Housing Society projects. More than 60% are larger units with a saleable area of at least 400 square feet. The cheapest flat on the price lists costs about HK$1.51 million at Yu Fung Court in Tung Chung, while the most expensive costs about HK$5.37 million at Ho Yin in Kwun Tong. Housing Society and Home Ownership Scheme projects are offered at a 30% discount, while Green Form Subsidised Home Ownership Scheme flats are offered at a 40% discount. Owners opting for a flat-for-flat arrangement will receive a flat replacement voucher equivalent to the acquisition amount. They must pay the difference if the selected flat costs more, while any surplus will be refunded. Owners who ultimately do not buy a flat may receive cash and will retain Green Form eligibility for two years.

When owners can move in is a separate issue. Housing Bureau data show that Shing Chi Court in Kowloon Bay and Lok Ling Court in Fanling have been completed and are expected to be ready for occupation in the fourth quarter of this year. The expected key dates for the other projects range from August 2027 for Kam Tin's Wei Hei Court to March 2031 for Tai Po's Hiu Nga Court. For Housing Authority projects, the “key date” refers to the date on which construction is completed in all respects. For Housing Society projects, it refers to the date on which the land grant conditions are fulfilled. Neither is the same as the date on which owners can move in.

The Housing Bureau has kept the daily number of flat selections low. Housing Secretary Winnie Ho Wing-yin said in August that about 50 to 60 households would be handled each day, depending on progress. She said a typical Home Ownership Scheme sale could handle 140 to 150 transactions in one day, but the Hung Fuk Estate owners were mostly elderly and might not have dealt with property transactions before, so the process would be slowed down. The two procedures are different, and the figures are provided for reference only. Ho said on September 22 that after the 35 households on the first day, the remaining owners would be invited in the order determined by the ballot held on September 15 over roughly the following two months. She stressed that owners must first sign the sale and purchase agreement before they will be invited to select a flat.

Deputy Financial Secretary Wong said on September 17 that the final deadline for signing the agreements was mid-October, after which 45 to 90 days would be needed to complete the deeds of assignment. For the more than 10 households that have still not agreed to sell, he said the government may resort to legislation next year to recover ownership of the properties, with compensation paid in accordance with the law.