Latest figures released by the Hong Kong fire department puts the death toll in the apartment complex fire at 65 with around 70 people injured. Ten firefighters also sustained injuries in the incident.
As of Thursday, around 55 people have been rescued by firefighters out of almost 300 people who are unaccounted for.
The city's Chief Executive John Lee while giving an update on the situation said that rescue efforts were still ongoing.
"Despite the complex conditions at the scene, the firefighters' rescue efforts will not stop," he said.
An investigation into the blaze which began on Wednesday afternoon is ongoing with police and firefighters entering the scene to collect relevant evidence.
Hong Kong firefighters eventually brought the inferno under control on Thursday while police said its cause could have been a "grossly negligent" construction firm using unsafe materials.
Rescuers battled intense heat and thick smoke for more than a day after the blaze erupted as they fought to reach residents feared trapped on the upper floors of the Wang Fuk Court housing complex in the northern district of Tai Po.
The eight blocks of the tightly packed complex have 2,000 apartments home to more than 4,600 people in the financial hub struggling to overcome chronic shortages of affordable housing.
"We have reason to believe that the company’s responsible parties were grossly negligent, which led to this accident and caused the fire to spread uncontrollably, resulting in major casualties," Eileen Chung, a Hong Kong Police Superintendent, said.
Three men from the construction company, two directors and one engineering consultant, had been arrested on suspicion of manslaughter over the fire, she added.
Police said in addition to the buildings being covered with protective mesh sheets and plastic that may not meet fire standards.
A firefighter was among the 65 killed, as 45 people remain in critical condition in hospital, Hong Kong police told a press conference before dawn on Thursday.
"The priority is to extinguish the fire and rescue the residents who are trapped," Hong Kong leader John Lee told reporters earlier.
"The second is to support the injured. The third is to support and recover. Then, we'll launch a thorough investigation."
Some 279 people were uncontactable and 900 were in eight shelters, he added.
One 71-year-old resident surnamed Wong broke down in tears, saying his wife was trapped inside.
Harry Cheung, 66, who has lived at Block Two in one of the complexes for more than 40 years, said he heard a loud noise and saw fire erupt in a nearby block.
"I don't even know how I feel right now. I'm just thinking about where I'm going to sleep tonight."
More than 1,200 firefighters are battling to control the flames, along with 304 fire engines and rescue vehicles.
Hong Kong's Transport Department said that a number of roads would remain closed in the area on Thursday morning and 39 bus routes have been diverted.
At least six schools will be closed on Thursday due to the fire and traffic congestion, the city's Education Bureau said.
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