Only 1 Hong Kong landlord seeks subdivided flat approval as new law takes effect

Only one landlord in Hong Kong has sought certification approval for subdivided flats since a new law on minimum housing standards took effect about two weeks ago, while applications for a grace period have been submitted for more than 1,100 homes, according to authorities. The Basic Housing Units Ordinance, which took effect on March 1, stipulates that only subdivided homes that meet minimum standards and are certified by building professionals can be legally leased. Non-compliant landlords face a maximum fine of HK$300,000 (US$38,343) and three years’ imprisonment. A “basic housing unit” in a subdivided flat must measure at least 86 sq ft, have a ceiling height of 2.3 metres (7.5 feet), a window and a toilet, among other requirements. Certificates must be renewed every five years. From this month, landlords can seek certification or register for a grace period within a year, which grants them until February 2030 to complete the required rectifications while continuing to lease their properties legally. The bureau said that as of Monday, it had received 316 registration applications involving about 1,160 subdivided flats for the grace period, but only one for certification approval. “As we continue to strengthen our publicity and education efforts, we expect to receive more registration and recognition applications, and will process them at full steam,” the Housing Bureau said in a paper submitted to the Legislative Council on Wednesday. The bureau added that it would upload information on the relevant flats for all approved applications. Some landlords earlier told the South China Morning Post that they had spent millions of Hong Kong dollars renovating their subdivided flats, but many others were deterred by the high costs and unsure whether to proceed. A social enterprise specialising in subdivided housing rental services also said it had been receiving inquiries since January from landlords who owned only a few subdivided units in one flat. Anthony Chiu Kwok-wai, executive director of the Federation of Public Housing Estates, said it was still early days since the ordinance took effect, but he anticipated a gradual rise in applications as more landlords sought formal recognition for their flats. “I believe the landlord who applied for recognition likely owned a flat that required minimal structural changes, allowing the applicant to seek approval early,” he said. Chiu added that this initial case could serve as a benchmark for the industry to understand the new standards, encouraging further applications. The city has 10,170 subdivided flats that are less than 70 sq ft, according to a 2021 census. Another 62,295 subdivided homes – almost three-fifths – range between 70 and 140 sq ft. At least 220,000 people in the city live in subdivided flats, homes carved up by separating a property into tiny cubicles that are notorious for hygiene, safety and security hazards. Tenants affected by the new law can apply for temporary housing, subject to availability. Secretary for Housing Winnie Ho Wing-yin earlier said about 4,000 transitional homes had been reserved for affected subdivided flat tenants, and that she was exploring increasing the supply in urban areas. As of December, about 16,690 transitional flats were available, with another 2,700 due by 2027.