Secretary for Transport and Housing Eva Cheng Yu-wah confirmed that "almost all" affected villagers had signed up.
Cheng said 200 applications, involving about 400 villagers, have been received in total and these are now being checked.
She said several had registered as one-member households while some applications were repeated.
Under the compensation package, those living in a single structure will be treated as one group and may only get one share of compensation.
Cheng explained the previous estimate of 500 villagers was based on general household surveys conducted some time ago..
A government spokeswoman said about 30 applications have already been approved and two households received compensation before the Lunar New Year holiday.
Cheng hopes all residents will be relocated by the middle of October.
The stubborn resistance of some families softened after the government agreed to help villagers rebuild their village elsewhere in Yuen Long.
They have asked the government to help build roads, public drainage and community facilities in the replica village, as well as to provide interest-free loans for those who cannot afford to rebuild their homes despite the compensation.
Cheng said the government has pledged to help villagers relocate en masse if necessary and farmers in need may seek loans from the Agriculture, Fisheries and Conservation Department. She said several villagers have already found suitable plots.
Ko said they agreed that rebuilding the village may help ease the pain of leaving their homes.
Residents yesterday spent their last Spring Lantern Festival in the village along with some conservationists. They played guessing games, sang, danced and enjoyed rice dumplings while decorating the village with colorful lanterns.