Hong Kong authorities took market rates into account before setting a two-year annual subsidy of HK$150,000 (US$19,278) for flat owners displaced by the Tai Po fire, the city’s home affairs minister has said, amid calls for the government to monitor whether the new measure will further drive up rents in the area.
Under the new measure, homeowners of the fire-damaged Wang Fuk Court will each receive the subsidy to rent homes in the private market, at a total cost of HK$1.2 billion.
Both flat owners and tenants will also be given a one-off subsidy of HK$50,000 to support their relocation.
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“When we set the annual amount of HK$150,000, which translates to about HK$12,000 a month, we took into consideration the rent in the same district and that of Wang Fuk Court, which are at a similar level,” said Secretary for Home and Youth Affairs Alice Mak Mei-kuen on Friday.
Amid concerns that the grant would further drive up rent in Tai Po, she added: “If we were concerned about market adjustments, they would actually take place anyway regardless of the level set by the government.”
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She also said the government needed to be cautious in using the support fund, which has reached HK$3.8 billion so far, as the aim was to provide victims with long-term help and to address their future needs.