The Hong Kong Special Administrative Region government is to impose new measures for subdivided units to improve residents’ living conditions, allowing landlords to lease out only those that meet proper standards.

Anyone renting out substandard units will face legal consequences and such units will be gradually eradicated, according to the 2024 Policy Address that was delivered on Wednesday.

Flats that meet the required standards will be verified as “Basic Housing Units”, and must have windows, an individual toilet, and a floor area of no less than eight square meters. More details of the specific requirements will be announced shortly.

According a government source, the consultation period for the new policy is expected to last for two months from December. The government aims to submit the draft legislation on the policy to the Legislative Council for review in 2025.

When delivering the address, Chief Executive John Lee Ka-chiu said that current subdivided units differ significantly with regards to fire safety, ventilation, floor area, and availability of individual kitchens and toilets.

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As such, it is necessary to set minimum standards to eradicate inadequate subdivided flats. At present, some 110,000 households are living in these units.

Owners will need to file applications to register their flats as Basic Housing Units, and the flats will be verified by professionals to ensure compliance with the required standards.

Existing substandard units must be converted into Basic Housing Units so that they can continue to be rented out. Owners will be given a grace period to carry out the necessary renovations.

Owners who rent out substandard subdivided units may face prosecution, but the tenants concerned will not be held liable.

Upon expiry of the grace period, Secretary for Housing Winnie Ho Wing-yin will be empowered to decide when to take enforcement action against substandard flat owners.

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New subdivided flats entering the market must apply for recognition as up-to-standard Basic Housing Units before being rented out.

By adopting the new initiative, the government hopes substandard subdivided flats will be gradually phased out in the city.

The source added that they are not worried that the introduction of Basic Housing Units will increase the overall numbers of subdivided units. The new mechanism is designed to meet the public’s demand for compliant subdivided units, and complement current housing policies.

In his policy address, Lee also proposed to launch a program next year to offer a reward to anyone who provides concrete intelligence that leads to the prosecution of tenancy abuse in public renting housing.

The government will also proceed with 11 public housing redevelopment projects , as well as raising the rent and lowering the income limits for well-off public housing tenants to ensure resources appropriately allocated to applicants in need.

According to the government source, the authorities will offer a bonus of HKD$3,000 ($386) to persons who provide intelligence on abuse of public housing.

Contact the writer at fangxue@chinadailyhk.com