John Lee acknowledges inevitable rent rises of SDUs under new policy

Chief Executive John Lee Ka-chiu recognized that fluctuations in the prices of subdivided units (SDUs) are expected under the new regulatory policy, and emphasized that the government is committed to ensuring that no one ends up homeless due to these changes.

During a joint radio phone-in program this morning, the city leader emphasized the need for a healthy market for Basic Housing Units -- the new name for those SDUs up to par -- and reiterated the government's eradication of inadequate SDUs through legislation is to aim at addressing the majority of issues related to these units.

He believed the legislation could resolve about 80 percent of the SDUs' issues and noted that more than half of the households would be qualified for public housing and light public housing in the near future, thus Basic Housing Unit is just a temporary measure to help relocate the exploited households.

Lee also noted the importance of deterrent measures in the new legislation, proposing a minimum two-year prison sentence for violation.

When asked about establishing initial rental prices for Basic Housing Units, Lee noted the significant variance in current rents, making it difficult to set a median price.

The CE added that legislation to eliminate substandard SDUs could be completed as early as next year, with a proposed registration period of up to 1.5 years, followed by at least a year's grace period for owners to renovate their units.