A three-tier dispute resolution mechanism could help Hong Kong homeowners strengthen oversight of major renovation projects and prevent exploitation by “unscrupulous traders”, according to the home affairs minister.

The city’s building management challenges came under the spotlight after the deadly blaze at Tai Po’s Wang Fuk Court in November 2025. The estate was undergoing a HK$330 million renovation when the fire broke out, killing 168 people and displacing nearly 5,000 residents.

An independent committee investigating the blaze earlier uncovered evidence pointing to suspected bid-rigging and connected bidding companies, among other concerns.

Speaking on a radio programme on Saturday, Secretary for Home and Youth Affairs Alice Mak Mei-kuen said the proposed mechanism could better handle disputes among property owners and foster a more constructive environment for building management.

“When major renovations are required, if owners can engage in rational discussions throughout the process and listen to different opinions … it will undoubtedly strengthen management and oversight,” she said.

“If property owners cannot unite and work together rationally to resolve disputes, unscrupulous businessmen could easily take advantage of these loopholes. When they see two parties at odds, they could manipulate one side to gain its support while sidelining the other.”

The three-tier mechanism, introduced in last month’s policy address, is among a series of proposed rules designed to plug regulatory gaps exposed by the fire.

Under the first tier, district council members would intervene early to help neighbours resolve disputes through negotiation.

If the issues remain unresolved, the councillors would refer the parties concerned to professional mediation services provided by the Home Affairs Department. The final tier would be to take the case to court. The mechanism is expected to take effect next year.

Mak said authorities had been providing mediation training to district council members, who are expected to play a bigger role by not only making referrals but also actively facilitating communication among the parties across all three tiers.

Other proposals include requiring a technical briefing before owners vote so that homeowners can ask questions, prohibiting the rescheduling of owners’ meetings without a valid reason and requiring more parties to declare their interests. All would require amendments to the Building Management Ordinance. A public consultation on the proposals ended last month.

On youth development, Mak dismissed concerns over the rising youth unemployment rate, saying the problem was not unique to Hong Kong.

“Youth unemployment above the overall rate did not just happen in Hong Kong, but also in many parts of the world,” she said.

Government statistics show the unemployment rate among people aged 20 to 29 rose to 9.1 per cent between June and August, well above the overall rate of 3.8 per cent.

“What we need to do is not just create more jobs to counter unemployment, but equip our young people with the skills they need to meet those challenges through different measures,” she said.

For example, the authorities have worked with the Hong Kong Science Park and Cyberport to provide 200 three-month technology internship places.

Mak said many companies were satisfied with the interns’ performance and had offered them full-time positions.

“Many young people said they did not expect to enter the industry before the internship programme … we will expand the quota, hoping more tech start-ups can provide such opportunities for our youth,” she said.