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Lawmaker Scott Leung Man-kwong said that more than 34,000 subdivided flats registered under the government’s Basic Housing Unit regime was an average figure, adding that rents could rise in the short term.
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His comments came after the conclusion of the first-round early-bird offer on August 31, under which landlords who submitted grace-period applications by the deadline were exempt from the application fee for Basic Housing Unit (BHU) recognition.
Speaking on a radio program on Tuesday, Leung, deputy chairman of the Legislative Council’s Panel on Housing, said he expects registrations to increase as the enforcement period approaches.
He said consultations with owners found that many flats need only minor alterations to meet BHU requirements, such as replacing entrance doors or improving ventilation.
However, units that require structural overhauls may cause owners to weigh the renovation costs against the decision to continue operations.
Leung added that rents may temporarily increase due to compliance costs, but longer-term market adjustments and an increased public housing supply would eventually help stabilize prices. He also noted that elderly landlords living in subdivided units often face difficulties with registration and renovations, although relevant support services are available.
Jerry Ho, vice chairman of the Hong Kong Basic Housing Units Operators Association, said on the same program that some individual landlords have a limited understanding of the policy and struggle with technical procedures, such as installing water and electricity meters. Many therefore rely on one-stop services to manage the process.
He expressed confidence that overall registrations will eventually reach the government’s target of 80,000 units, which aims to phase out substandard housing. While the number of certified units remains low, he expects certifications to accelerate as stakeholders become more familiar with the procedures.
