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Vivian Au

Edith Lin

Owners of subdivided homes in Hong Kong may get a grace period of up to three years to rectify their substandard flats, as part of compromises by housing authorities to be announced next week, the Post has learned.
Under amended proposals, to be submitted to the Legislative Council next week, landlords will also be required to pay a registration fee of between HK$1,000 (US$129) and HK$3,000 to operate legally, according to insiders.
But landlords may qualify for a discount on the fee if they are among the early birds to register.
“It [the discount] acts as an incentive for landlords to register in advance,” one of the sources said.
The administration is set to discuss its latest proposal with lawmakers on March 31.
The government earlier proposed drafting a new law allowing only registered subdivided flats – known as “basic housing units” – that meet minimum standards to remain on the rental market.
The Housing Bureau earlier proposed that the grace period would range between 12 and 24 months during a two-month public consultation, which ended last month.
But some critics deemed the measures as too stringent, with the grace period too short and some minimum requirements being unrealistic.

Sources said on Wednesday that the government suggested offering landlords a year to register their properties before modifying the duration to within 36 months to comply with the minimum standards.
To prevent landlords from delaying rectification works, new tenancy agreements could not be signed during the final six months in the 36-month grace period, they added.
The latest proposals also ease another requirement by allowing subdivided flats with windows facing lightwells that could be cleaned regularly, insiders said.
Besides the registration fee to authorities, landlords will also be required to pay for professionals to inspect their flats, according to sources.
Hayson Chan Hin-hay, chairman of the Hong Kong Basic Housing Units Operators Association, said whether the three-year grace period was sufficient depended on how efficiently government departments operated.
He cited the example of finding officers to install official water meters in each of the subdivided flats to comply with the proposed standards.
Chan added that allowing eligible subdivided flats facing lightwells was “good news” to landlords as they did not have to rearrange the layout and save renovation costs.
But he foresaw difficulties in execution, saying tasks such as cleaning the lightwell would involve cooperating with property management companies and other flat owners in the building, as well as clarifying who would be responsible for the cost.
“It is something beyond our control as it involves third parties,” Chan said.
“The government should have just allowed subdivided flats with windows facing lightwells to stay and required operators to install ventilation fans.”
Chan added that the registration fee would add a financial burden to operators as it could cost up to HK$12,000 for a landlord who divided a flat into four cubicles, let alone inspection and renovation costs.
Scott Leung Man-kwong, a member of the legislature’s housing panel, noted that the discount on the registration fee might encourage landlords to register earlier, thereby allowing authorities to prepare for tenant relocation and make enforcement arrangements.
But he said he hoped the government could offer a better incentive by offering low-interest-rate loans to landlords to renovate their properties to stay in the market.


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Hong Kong plans to start regulating subdivided houses, with authorities hoping to get the proposed law passed this year. Photo: May Tse

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Housing authorities will focus on building public flats on larger sites. Photo: Elson Li

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Sy Kiheo, his wife and son are sharing a 70 sq ft subdivided flat. Photo: May Tse

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Hong Kong has 110,000 subdivided flats and is now seeking to weed out low-quality homes by only allowing those meeting certain criteria to remain on the market as “basic housing units”. Photo: Elson Li

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Insiders say landlords will also need to pay a registration fee of between HK$1,000 and HK$3,000 for landlords to operate legally


Insiders say landlords will also need to pay a registration fee of between HK$1,000 and HK$3,000 for landlords to operate legally.


Hong Kong society

Hong Kong property

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