Over 60% of subdivided flat operators seek grace period to comply with new rules
SCMP · 1 SOURCES1 day ago2 MIN

Summary
More than 60 percent of Hong Kong's subdivided flat operators have applied for a three-year grace period to comply with new regulations under the Basic Housing Unit Ordinance, which took effect in March. The Housing Secretary reported that as of Monday, the applications covered over 70,000 subdivided units from approximately 20,000 complete flats, representing more than a twofold increase from the 34,000 applications recorded as of August 10. The deadline for the initial six-month "early bird" registration phase was Monday, with operators who applied during this period eligible for a waiver of HK$3,000 in certification fees per subdivided flat.
Key Points
- Housing Secretary Winnie Ho Wing-yin announced on Thursday that applications involved over 70,000 subdivided units from about 20,000 complete flats as of Monday
- This represents more than double the 34,000 applications received as of August 10, reflecting a significant surge in registrations
- Hong Kong has roughly 110,000 subdivided units in total, with about 80,000 expected to continue operating under the new regime
- The registration period ends on February 28 next year, though the early bird fee waiver applies for the coming two years
- As of Wednesday, operators of 120 subdivided flats had applied for certification, with the city having 41 certified basic housing units as of Thursday
Why It Matters
The strong response to the early bird registration phase suggests widespread acceptance of the new regulatory framework, which requires all subdivided flats to be certified as "basic housing units" to be legally leased. With the grace period allowing time for compliance upgrades, the ordinance aims to improve living conditions for tens of thousands of residents while providing operators a pathway to legitimacy in the rental market. The Housing Secretary has urged more operators to register before the February deadline to take advantage of the certification fee waiver.
The strong response to the early bird registration phase suggests widespread acceptance of the new regulatory framework, which requires all subdivided flats to be certified as "basic housing units" to be legally leased. With the grace period allowing time for compliance upgrades, the ordinance aims to improve living conditions for tens of thousands of residents while providing operators a pathway to legitimacy in the rental market. The Housing Secretary has urged more operators to register before the February deadline to take advantage of the certification fee waiver.