Operators of Hong Kong’s subdivided flats will have to fulfil new criteria aimed at stamping out ‘exploitative’ practices, John Lee says
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Operators of Hong Kong’s notorious subdivided flats will have to meet specific requirements before they can rent them out once authorities define rules to eradicate “exploitative” practices, according to the city’s leader.
“On top of meeting needs, most people are after profits,” Lee said on a radio show. “As they are turning profits, I think we can only let them make profits reasonably, not exploitatively. Once we set the standards, there will be entry barriers to ensure tenants are treated fairly.”
According to the policy blueprint, the standards will incorporate elements such as building and fire safety, sanitary conditions and living space area, with the chief executive suggesting legislative proposals may be part of an “orderly” solution.
Lee stopped short of saying whether a licensing regime would be on the cards but noted the legislature and stakeholders would have ample time to discuss the way forward after the task force put forth its proposals in 10 months.
Deputy Financial Secretary Michael Wong Wai-lun, who heads the task force, later on Thursday said it was clear that all subdivided flats would need to register their premises, and legislation would be required to enforce standards.
He anticipated that authorities would conduct a citywide survey to identify all existing subdivided homes before new rules came into effect to facilitate law enforcement, but he also refused to confirm whether licensing requirements would be rolled out.
Landlords were likely to be given a transition period to bring flats up to standard, and existing tenants should be allowed to remain until their leases ended before authorities took action, he said.
“Let’s not have an assumption that all subdivided units are currently substandard. We don’t know yet as the standards aren’t out,” he said at a press conference, adding that his task force would not set “unrealistic” requirements.
Lin Wai-hin of the Concerning Subdivided Units Alliance said that, while the policy blueprint aligned with calls to create a scoring and licensing regime to regulate subdivided homes, tenants were largely concerned about how aggressively such flats would be weeded out.
“They are worried that some subdivided flats will be eliminated, while the supply of public housing cannot keep up,” Lin said.
“If landlords stop renting out these units [because of the regulation], there may be a temporary shortage of supply and rents will rise.”
He said authorities should establish backstop measures, such as controlling rents and offering alternative accommodation to those evicted from the flats, before pressing ahead with policies, adding NGO-run interim housing could be used.
Wong said increasing housing supply in a few years’ time would be essential for ridding the city of substandard homes, but maintained the government had no intention to use vacant Covid-19 quarantine facilities for public flats.
Xia Baolong, Beijing’s top official overseeing Hong Kong affairs, has said the city should “bid farewell” to subdivided flats and “cage homes” by 2049.
A census from 2021 found that about 215,700 Hongkongers were living in 108,200 subdivided homes, representing respective increases of 2.9 per cent and 16.7 per cent from 2016.
Additional reporting by Lo Hoi-ying
