(Policy Address 2024) Eradicate inadequate subdivided units expected to start in four years: sources

The government is set to initiate a two-month consultation in December regarding resolving issues related to subdivided units (SDUs), while it could take up to four years to eliminate substandard SDUs, according to the sources.

This comes after Chief Executive John Lee Ka-chiu announced that the government would regulate the renting of SDUs in the latest policy address.

According to sources, the aim is to present the relevant bill to the Legislative Council by 2025. It may take three to four years before the government prohibits the substandard SDUs.

Chief Executive John Lee Ka-chiu suggested in the TV forum this evening that the registration system for the qualified SDUs is expected to be established within one and a half years, while the grace period could last up to two years, subject to the LegCo discussion.

The government source also noted that the focus is only on SDUs, while rooftop houses, bedspaces, space capsules are already regulated by various departments, as one approach to all issues could lead to impractical policies.

Currently, around 110,000 households live in SDUs, with about 40 percent not applying for public housing due to asset limits or lack of residency. Authorities believe that around 30,000 SDUs are non-compliant, but expect the new measures will not significantly raise the rents of the SDUs.