The Urban Renewal Authority is offering an acquisition price of more than HK$8,000 per sq ft to flat owners living in two clusters of pre-war shophouses in Mong Kok.
The owners of the shophouses in Shanghai Street will get HK$8,010 per sq ft while residents of shophouses on Prince Edward Road West, part of the flower market, will get HK$9,391.
The authority said the seven valuation firms it appointed to assess the properties were very close in their estimations. It believed the offers were close to the current market situation.
The offer means an owner of a 1,100 sq ft shophouse in Prince Edward Road, for example, would get HK$10.3 million.
Under the authority's plan, which was announced in 2008, the 20 blocks in the two clusters would be renovated at a cost of HK$1.33 billion. The two projects involve 73 ownerships. The owners will have 60 days to consider whether to accept the offers.
For the ground-floor shops, an allowance on top of the market value will be offered to the owners.