(Policy Address 2024) Govt to regulate renting of compliant subdivided units

The Hong Kong leader announced on Wednesday that they will regulate the renting of Subdivided Units (SDU), as well as renaming the compliant units as Basic Housing Units.

The Hong Kong leader said that currently, some 110,000 households are living in SDUs, indicating a genuine demand for these units. 

Under appropriate regulation, the market demand for SDUs will be satisfied by Basic Housing Units that meet the required standards.

He said that substandard SDUs in residential buildings must be converted into Basic Housing Units that meet the required standards. Upon conversion, these units must be confirmed by professionals for their compliance with the required standards and apply for recognition. Otherwise, there will be criminal liability on the owners part, while the tenants concerned will not be held liable.

Lee stated that they will allow time for owners of existing SDUs in residential buildings to carry out the necessary works. A grace period will be prescribed by law, during which enforcement actions will not be taken against the illegal renting of substandard SDUs.

To this end, the government will set up a registration system, enabling registered owners to be entitled to the grace period. The registration system only accepts applications from owners of pre-existing SDUs in residential buildings under rental.

New SDUs entering the market must apply for recognition as up-to-standard Basic Housing Units before renting out, hence no grace period is needed for their conversion.

The government proposes that the standards of "Basic Housing Units" should include the provision of windows, an individual toilet, a floor area of no less than 8 square meters, etc.

The Deputy Financial Secretary and the Secretary for Housing, being the head and deputy head of the Task Force, respectively, will announce the details and seek the views of LegCo and stakeholders for drawing up the legislative proposals and related measures, such as the timetable for registration.