Operators of subdivided units may be given a three-year grace period to renovate their flats to comply with new regulations meant to phase out substandard dwellings, according to proposals laid out by Hong Kong’s housing authorities.

A subdivided unit in Kwun Tong, on February 8, 2025. Photo: James Lee/HKFP.
A subdivided unit in Kwun Tong, on February 8, 2025. Photo: James Lee/HKFP.

In a document submitted to the Legislative Council on Tuesday, the Housing Bureau and the Housing Department propose that landlords be given a 36-month grace period – longer than initially suggested – to make the necessary fixes, as well as a one-year window to register their flats regardless of whether they comply with the regulations.

Only after repairs are completed will the government certify subdivided units and redesignate them as “Basic Housing Units” that comply with the new legislation.

The authorities had initially proposed a two-year grace period and a registration period lasting between 12 and 18 months, shortly after Chief Executive John Lee introduced the plan to phase out “substandard” subdivided flats in his Policy Address in October last year.

See also: As Hong Kong plans crackdown on tiny flats, operators are reluctant to maintain supply while tenants feel the squeeze

The updated proposals – set for discussion by the legislature’s panel on housing next Monday – will effectively give landlords four years to bring their flats up to the legal standard, the same duration as two standard rental contracts.

The registration period is expected to begin in early 2026, with the grace period ending in late 2030, according to the proposal.

The fee to certify flats as Basic Housing Units will become more expensive the later the landlords wait to fix the units, housing chief Winnie Ho told RTHK on Wednesday.

Secretary for Housing Winnie Ho meets the press on October 26, 2023. Photo: Kyle Lam/HKFP.
Secretary for Housing Winnie Ho meets the press on October 26, 2023. Photo: Kyle Lam/HKFP.

Ho entertained the possibility of a longer grace period last month, saying that three years would allow landlords and tenants more time to make renovations or move out.

The Hong Kong Basic Housing Units Operators Association was among those calling for a longer grace period, saying it would “allow landlords to make the needed renovations within a reasonable amount of time, to upgrade the quality of the living environment,” according to its submission to the bureau.

Regulations scaled back

The association earlier said that an initial government proposal to require each unit to be equipped with a street-facing window was too restrictive. In response, housing authorities have scaled back the requirement.

Under the new proposals, windows facing an enclosed four-sided yard will be allowed, but must have a minimum area of 0.1 square metres – the equivalent of about 1 square foot – “to ensure adequate ventilation and lighting.”

Exhaust fans may also be needed to ensure ventilation standards are met, but they cannot replace windows.

A subdivided unit in Mong Kok. Photo: Kyle Lam/HKFP.
A windowless subdivided unit in Mong Kok. Photo: Kyle Lam/HKFP.

The yard should also be accessible from the ground floor, according to the proposals.

Ho said on Wednesday that there were about 2,000 subdivided units with courtyard-facing windows, adding that garbage disposal access was needed to maintain hygiene conditions.

The minimum floorspace requirement for each subdivided flat has remained unchanged from last year’s initial proposal of 8 square metres, or 86 square feet, despite calls from the operators’ association to lower the requirement to 70 square feet.

The government’s proposed floor space requirement does not include a cap on the number of people living in a single unit.

Landlords still leasing substandard units after the grace period may face up to three years in prison and HK$300,000 in fines.

And to deter landlords from delaying making repairs until the last minute, it will be illegal to sign a new rental contract without a proper Basic Housing Unit certification in the final six months of the grace period, the housing minister said.

The bureau did not propose rent caps, saying rent hikes were unlikely as the city’s public housing resources would be able to meet demand by the time the new law takes effect.

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James Lee is a reporter at Hong Kong Free Press with an interest in culture and social issues. He graduated with a bachelor’s degree in English and a minor in Journalism from the Chinese University of Hong Kong, where he witnessed the institution’s transformation over the course of the 2019 extradition bill protests and after the passing of the Beijing-imposed security law.

Since joining HKFP in 2023, he has covered local politics, the city’s housing crisis, as well as landmark court cases including the 47 democrats national security trial. He was previously a reporter at The Standard where he interviewed pro-establishment heavyweights and extensively covered the Covid-19 pandemic and Hong Kong’s political overhauls under the national security law.