Historic Kom Tong Hall was saved from demolition yesterday when its owner, the Mormon Church, put on hold plans to pull the building down in what it called a show of 'good faith'.
The breakthrough came after the government said it would compensate the Church for preserving the 88-year-old, grade-two listed building in Mid-Levels.
In a statement last night, the Church said: 'As a result of our meetings with the Antiquities and Monuments Office, the Church has decided to demonstrate its good faith by putting on hold any further work towards demolition of Kom Tong Hall.
'We are placing our confidence in the government to present a proposal within a reasonable time that will be satisfactory to the government while providing fair value to the Church.'
The Church said its offer stood while it awaited final details of an offer from the government. The two sides are believed to have reached a tacit agreement on compensation already.
The Church has been under intense public and government pressure since the South China Morning Post last month highlighted opposition to the demolition plans. Residents and members of the Central and Western District Council organised protests and a signature campaign against the Castle Road building's demolition as it stood surrounded by bamboo scaffolding, ready to be torn down.
Assistant Director of Leisure and Cultural Services (heritage and museums) Tony Ma Kai-loong said: 'Both sides share a common goal to preserve Kom Tong Hall . . . It is now a matter of working out a detailed offer.'