New Regulations May Lead to Higher Rents for Subdivided Units in Hong Kong

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New Regulations May Lead to Higher Rents for Subdivided Units in Hong Kong
Subdivided UnitsNew RegulationsHong Kong
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Hong Kong introduces new regulations for subdivided units, setting minimum living standards including windows, individual toilets, and a minimum floor area, which could lead to higher rents. The government aims to phase out subdivided units by increasing public rental housing provision.

When Hong Kong 's new regulations on subdivided units become effective, tenants may face higher rents to continue living in them, according to University of Minnesota PhD student John Hanzhang Ye. The government will set minimum living standards for subdivided units , including windows, individual toilets, and a minimum floor area of 8 square meters. Subdivided flats are a significant source of housing for low-income households, often rented to unrelated individuals.

Around 108,000 subdivided units accommodate more than 200,000 people, according to a 2021 survey by Hong Kong’s Census Department. Landlords will have a grace period to comply with the new rules, and subdivided units will be redesignated as Basic Housing Units. Deputy Financial Secretary Michael Wong Wai-lun estimates that 70 per cent of existing subdivided units already meet the requirements, while the rest need minor adjustments. The government plans to complete 30,000 new public housing units by 2028, aiming to gradually phase out subdivided units with increased public rental housing provision. However, the waiting list for public rental housing remains long, with a current waiting time of 5.5 years for family applications

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Subdivided Units New Regulations Hong Kong Minimum Living Standards Public Rental Housing

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