Tackling HK's Problem of Subdivided Flats

People with few resources end up in subdivided flats

In his policy address, Chief Executive John Lee Ka-chiu wanted to (finally) tackle the issue of subdivided flats -- where a space is subdivided to the point where tenants literally live in cupboard-like spaces, sharing bathrooms and kitchens, and there are hardly any windows for air circulation, let alone fresh air.

During his speech, Lee said about 30 percent of the 110,000 subdivided flats were "improper", and would be phased out with upcoming legislation, and that there would be time for landlords to upgrade these flats to meet the requirements of what the government believes is a decent living space.

How does Lee know it's about 30 percent? Deputy Financial Secretary Michael Wong Wai-lun said after it didn't necessarily mean the other 70 percent were in full compliance with the requirements.

Lee says 30 percent of subdivided flats "improper"

With the new legislation, subdivided flats that have been registered and meet the requirements will be designated as basic housing units and will be allowed to be leased.

That means the flat needs to be at least 86 sq ft, with a ceiling height of 2 metres, have a toilet and ventilation system, and meet fire and structural safety standards.

If landlords don't meet this new code, they could go to jail for at least two years.

It'll be interesting to see how this registration process works and what it will reveal in terms of the state of these subdivided flats. 

The big problem though, is that while it would be good for these living spaces to be upgraded, where will the current tenants live temporarily and also will their rents increase to pay for these renovations? Has the government thought of that?

That's Vera Yuen Wing-han's concern, an economics lecturer at the University of Hong Kong. She says the government phasing out the smallest subdivided flats could lead to higher rents for other subdivided homes as long as there was a demand.

Will tenants be forced to pay more for upgrades?

After all, people live in these poor-quality spaces because they can't afford to live anywhere else.

She also said landlords would have to pay for the renovations to meet the requirements and pass down these costs to tenants.

"If the government does not do anything, [tenants] will have to be squeezed into one unit with dividers," she said. "[This] kind of model happened in Hong Kong, like in the 1950s and 1960s when a lot of families were living in one unit, sharing the living room and the kitchen."

The government will launch the consultation process in December and start the legislative process next year, while the registration will begin in the fourth quarter of next year until the fourth quarter of 2026. Once legislation is passed, then the government will decide the time frame and targets for enforcement action against landlords. 

The Concerning Subdivided Units Alliance said the government's time frame for enforcement action against landlords was "too vague" and gave the latter too much flexibility. 

"It is unclear when the government will take the enforcement action," the alliance's Lai Kin-kwok said.

Lai also questioned the effectiveness of implementing the legislation without a clear enforcement plan, suggesting landlords could continue to rent out flats with poor living conditions.

Subdivided flats in Hong Kong are a difficult topic to deal with, as people are desperate for places to live in, and yet they are practically inhumane...