Hong Kong plans to buy for $512 million homes devastated in deadly high-rise fire

HONG KONG - Hong Kong proposes to spend about HK$4 billion ($512 million) to buy out the owners of homes in a high-rise housing complex ravaged by a massive fire that killed more than 160 in November, authorities said on Saturday.

The prices offered will be HK$8,000 per sq. ft. without a land premium payment, and HK$10,500 per sq. ft for those receiving such a payment, officials in the Asian financial hub told a media briefing.

"We believe the proposed price is sufficient for the affected residents to relocate and secure long-term housing," said Wong Wai-lun, Hong Kong's deputy financial secretary.

The government also offered an apartment exchange program for the 4,600 affected tenants, who lived in nearly 2,000 housing units at the complex, Wang Fuk Court.

The total outlay, estimated at HK$6.8 billion, will drop by HK$2.8 billion from a contribution by a relief fund, and could go lower still after insurance compensation in factored in, the officials said.

($1=7.8148 Hong Kong dollars)

- Jessie Pang, Selena Li and Clare Jim in Hong Kong; Editing by Clarence Fernandez/