Concern group ‘disappointed’ with subdivided flat phase-out plan

A concern group has expressed disappointment at new measures to phase out “unliveable” subdivided flats, calling for a comprehensive resettlement plan and stronger rent controls.

In a statement issued after Chief Executive John Lee delivered his third policy address on Wednesday, the Concerning Subdivided Units Alliance said the government had failed to address the problem of substandard housing and adequately resettling tenants.

Lee announced a plan to phase out subdivided flats smaller than eight square metres (86 sq ft) along with those which lack a window and their own toilet. But the city’s infamous “coffin homes” will not fall under the remit of the new legislation.

“The alliance is disappointed that the government has not proposed any rehousing measures for tenants of subdivided units affected by the policy. As we have all along emphasised, rehousing measures are the key to the effective implementation of the policy,” the statement said.

The alliance also called on the government to draw up a timetable for phasing out inadequate subdivided units, specifying the number deemed unsuitable as well as the corresponding rehousing measures.

Under the measures proposed by Lee, landlords will be given a grace period to bring their subdivided flats up to standard.

The alliance called on landlords to register their subdivided flats within one year of the legislation. The authorities should also set up reporting hotlines for tenants, it said.

Rent caps

The alliance called for a cap on rents, restricting the rental cost for each square foot to HK$37.5. Bedspace or “coffin home” tenants pay some HK$2,500 a month for a space little bigger than a single bed.

Separately, lawmaker Michael Tien said he would raise the matter of an initial rent cap at the Legislative Council when the government submits its proposals. He said the issue of rent controls was “tricky,” as the eventual decline in supply and improvements to the units would drive landlords to charge higher rents.

“When they upgrade the quality, the rents will go up,” Tien told reporters at LegCo on Wednesday, adding that Lee did not mention rent controls in his speech. Tien in 2021 called for a cap on initial rents for subdivided housing, but the legislation resulting from those discussions ended up only banning rent rises after the first two-year lease.

According to official data, Hong Kong had 108,200 subdivided flats in 2021. Local anti-poverty NGO, the Society for Community Organization, estimates that nearly 250,000 people live in these cramped units.

On a 2021 visit to Hong Kong, Beijing’s top official on Hong Kong affairs Xia Baolong said he hoped the city would eradicate its infamous subdivided flats and cage homes by 2049, describing the city’s housing crisis as a “deep-rooted problem.”

At a press conference after his speech, Lee said the government had to be “pragmatic” in getting rid of substandard subdivided units, taking into account the demand for units that will have been brought up to standard.

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