Minor adjustment needed for 70pc subdivided flats to certify as Basic Housing Units

Secretary for Housing Winnie Ho Wing-yin announced on Thursday that 70 percent of the subdivided flats require minimal adjustments to be certified as basic housing units.

During a radio program, she highlighted the government's initiative to tackle the issue of substandard subdivided flats through the certification of these units.

The framework for Basic Housing Units has received community support, and the government has made several adjustments based on public feedback. These include extending the grace period to three years and providing a one-year registration period, allowing owners ample time to upgrade their units. In cases where tenants need to relocate, social workers will provide necessary assistance.

Ho addressed concerns about a potential reduction in the supply of subdivided flats following new legislation. She explained that like any industry, the housing market will see both newcomers and exits.

She emphasized that severely substandard flats, which are divided into eight or ten smaller units, must be rectified. The government estimates that about 70 percent of subdivided flats will only need minor modifications, such as the installation of smoke detectors, to meet the new standards.

Regarding future rent adjustments for Basic Housing Units, Ho mentioned that the continued increase in the supply of both light public housing and traditional public housing should help balance the supply and demand for subdivided units. She noted that over the past year, rents for subdivided flats on Hong Kong Island have decreased, while they have remained stable in other areas.

Ho also shared that 40 percent of public housing will be located in the Northern Metropolis in the future. She acknowledged the ongoing need for urban living spaces and stated that the goal is to regulate Basic Housing Units to ensure quality living conditions in urban areas.

In the Budget, the ad valorem stamp duty for properties priced below HK$4 million was reduced to HK$100. Ho commented that the market for low-priced housing has become more active, and she anticipates that the figures for April will begin to reflect this change.