The Hong Kong government will set aside HK$4 billion to buy out the fire-ravaged Wang Fuk Court flats in Tai Po, the city’s finance chief has said.

Financial Secretary Paul Chan announced the plan during the 2026 budget speech on Wednesday, days after the government unveiled its buyout plan.

Deputy Financial Secretary Michael Wong previously said on Saturday that the government would spend up to HK$6.8 billion to buy property titles from Wang Fuk Court flat owners as part of the long-term housing arrangement.

Chan said on Wednesday that the buyouts would be financed by HK$4 billion in taxpayers’ money and HK$2.8 billion from the Support Fund for Wang Fuk Court in Tai Po, largely made up of donations from private entities and individuals.

Wang Fuk Court was undergoing a large-scale repair project when a massive blaze broke out in late November, killing 168 people and displacing thousands of residents. The fire – the deadliest in Hong Kong since 1948 – brought to light a litany of problems, from fire safety to bid-rigging.

The finance minister also said the government would allocate a total of HK$3 million to enhance the Urban Renewal Authority’s (URA) Smart Tender system and to provide subsidies for homeowners to utilise the paid system.

The URA’s Smart Tender was introduced in 2016, following a spate of bid-rigging incidents. The scheme is supposed to play a role in combating collusive bidding practices, but critics have noted that it cannot prevent bid-rigging syndicates from submitting bids.

It also appeared unable to prevent suspected collusion between the consultant and contractor on the Wang Fuk Court renovation project.

Last month, the government announced its plan to roll out an advanced version of Smart Tender later this year. It said it would provide a “more rigorous pre-qualified list” of contractors, as well as offering advice and support to homeowners in engaging consultants and contractors. 

New building repair subsidy scheme

Chan also said HK$3 billion would be reserved for the Development Bureau’s new subsidy scheme to assist homeowners with mandatory building repair works.

Homeowners could previously apply for building repair subsidies under the Operation Building Bright 2.0, a scheme that stopped accepting applications in September 2023.

Chan also added that HK$1 billion would be allocated to extend the Lift Modernisation Subsidy Scheme to help property owners renovate lifts in their buildings.