Hong Kong landlords have put forward just four of the city’s 110,000 subdivided homes for certification approval in the two-and-a-half months since a new law was enacted to phase out substandard living spaces, highlighting a low participation rate.
Three of the applications were submitted by a single landlord, Hayson Chan Hin-hay, chairman of the Hong Kong Basic Housing Units Operators Association.
Chan told the South China Morning Post that it took him about two months to renovate the subdivided homes in line with the new standards, while scheduling work around tenants.
The Basic Housing Units Ordinance took effect on March 1, and within 10 days the Housing Bureau revealed only one landlord had come forward to seek certification approval.
The ordinance requires subdivided flats to meet minimum living standards to be deemed fit for rental.
The bureau estimates that about 70 per cent of the 110,000 subdivided flats require only minor rectifications, while the rest need major renovations.
At a press briefing on Tuesday, principal assistant secretary for housing Jason Chan Ming-kwan defended the slow pace, saying the bureau was prioritising landlord registration for a three-year grace period, which should be done by next February, before they engaged professionals to carry out rectifications and obtain certification.
“Although there are only four applications for recognition ... as we explain the policy more and provide them with examples, and as the professional sector offers more services, the [number of] applications for recognition will increase gradually,” he said.
“The process will speed up when professionals have become familiar with the process.”
He added that newly bought flats that have been subdivided were also among the applications, alongside existing units.
The housing official said some cases involved simple modifications that did not require tenants to move out, such as installing fire extinguishers, smoke detectors and fire-rated doors.
He added that landlords of about 11,000 subdivided homes – involving more than 3,000 flats – had applied for a three-year grace period to buy time to meet the minimum standards.
Chan from the operators association said many landlords were opting to register for the grace period rather than rushing to carry out rectifications.
“The grace period does not cost them extra money. Meanwhile, it takes more than HK$100,000 (US$12,770) to fix a property. It is not a small amount,” he said, adding that some landlords seeking the grace period were delayed by the need to obtain consent from property owners, while other flats were tied up in inheritance disputes.
Under the ordinance, a “basic housing unit” in a subdivided flat must measure at least eight square metres (86 sq ft), have a ceiling height of 2.3 metres (7.5 feet), a window and a waterproof toilet, among other safety, hygiene and fire safety requirements.
Certificates must be renewed every five years.
Landlords can register for the grace period before February 28, 2027. They have three years to rectify their substandard properties while continuing to lease them.
To help landlords comply with the new standards, the Housing Bureau carried out sample rectifications at two properties in Kowloon City, covering five basic housing units.
Official figures from January show the median monthly rent for a subdivided home in the district was HK$5,400.
The bureau said on Tuesday that one case involved splitting a flat into two units, with rectification costs averaging about HK$25,000 per unit. Works included installing fire-rated doors, ventilated toilet doors, fire detectors, a fire extinguisher, and individual water and electricity meters.
The other case involved subdividing a flat into three units at a cost of about HK$51,000 per unit. In addition to meeting fire safety, ventilation and hygiene requirements, works included reconfiguring part of the layout to meet minimum size standards and building a new toilet for one unit.
Undersecretary for Housing Victor Tai Sheung-shing said the two cases were typical of those found in the market, and that the bureau took about a month to complete the works.
He said the government had referenced market prices and was confident landlords could carry out similar rectifications, depending on the condition of their flats.
Certification by professionals would cost at least HK$3,500 per unit, he added.
Tai also cautioned that landlords would have to spend more if their subdivided flats were of poor quality.
“It is a reasonable cost. Our requirements are not high. We are asking for safety, hygiene and a reasonable living area. Landlords can retrieve their costs through their rental income in a few months,” he said. -- SOUTH CHINA MORNING POST
