First batch of Hong Kong landlords spend millions fixing subdivided flats ahead of new law
As some rush to revamp subdivided flats before the new law takes effect, others hesitate, wary of exact requirements, hidden costs and uncertain returns
Building experts have also warned of the challenges facing landlords seeking certification under the new law, including meeting waterproofing and fire safety requirements, which will require professional advice and supervision.
Matthew Lau Chi-kwong, a landlord operating more than 500 subdivided homes across over 50 whole flats that he had bought or was subletting, is among the first to rectify his properties.
“My stock is too big. I have to follow the government policy … However, I will not rush to rectify all of them to stay flexible,” he said.
Lau has spent around HK$2 million (US$255,672) to upgrade 20 standard flats by merging smaller units and installing windows, among other works. One project involved converting a flat of more than 1,000 sq ft in Happy Valley into four subdivided homes, each renting for about HK$13,000 per month.
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