Source: Hong Kong Government special administrative region
Following is a question by the Hon Grace Chan and a written reply by the Secretary for Housing, Ms Winnie Ho, in the Legislative Council today (May 20):
Question:
It has been reported that since the Basic Housing Units Ordinance (Cap. 658) came into effect on March 1, 2026, quite a number of tenants of subdivided units (SDUs) in residential buildings have been requested by their landlords to move out. In this connection, will the Government inform this Council:
(1) whether it has assessed the number of households residing in SDUs and the number of Notices of Tenancy involving SDUs endorsed by the Rating and Valuation Department (RVD) in each of the past three years; of the enforcement actions taken by the Government against SDU landlords who failed to submit a Notice of Tenancy to the RVD, as well as the number of landlords who have been prosecuted and the number of SDUs involved in the relevant enforcement actions, in each of the past three years, together with a tabulated breakdown;
(2) of the respective numbers of application forms for verification of Category C tenants of transitional housing (TH) submitted by SDU households that were received by the six Subdivided Unit District Service Teams (DSTs) commissioned by the Housing Bureau since October 3, 2025; among them, the respective numbers of cases that were verified and issued reference numbers by DSTs, and those which were ultimately successfully allocated with TH units (with a breakdown by the six DSTs);
(3) of the number of cases since October 3, 2025 in which a reference number could not be issued by DSTs due to failure to obtain from the owner or operator a Declaration of Early Termination of Tenancy Agreement Due to the Alteration Works of Subdivided Units in Residential Buildings in accordance with the Basic Housing Units Ordinance (with a breakdown by the six DSTs); and
(4) given that currently the rents and other charges (e.g. management fees) of different TH projects are not standardised, if TH applicants or tenants have views on the rents or charges, of the formal channels and procedures through which they can reflect to or communicate with the Government or the operating organisations; whether the Government will consider establishing a communication platform for multi-party dialogues among the operating organisations, tenants, applicants and the Administration, so as to improve the operational effectiveness of TH projects; if so, of the details; if not, the reasons for that?
Reply:
President,
The current-term Government is determined to tackle the long-standing, big and difficult issue of substandard subdivided units (SDUs) in Hong Kong. The relevant Basic Housing Unit (BHU) regime is rolled out starting from March 1, 2026 under the principle of “registration first, enforcement later”, with applications for registration of pre-existing SDUs, as well as applications for BHU recognition of SDUs complying with minimum standards of living conditions being accepted concurrently.
The BHU regime provides a 48-month transitional arrangement (i.e. a 12-month registration period followed by a 36-month grace period upon successful registration) to allow reasonable time for SDU owners/operators to gradually adapt to the statutory requirements, with the aim of eradicating substandard SDUs in an orderly manner and improving the living conditions of grassroots households. Pre-existing SDUs, regardless of whether they comply with the minimum standards of living conditions or not, are welcome to apply for registration for free to obtain the grace period for more time in planning the next steps for the units (e.g. reaching flexible and people-oriented rental arrangements with tenants, carrying out alteration works gradually, applying for BHU recognition, etc).
The criminal offence of illegal letting of SDUs with no registration and no recognition under the BHU regime will only come into effect 12 months after the commencement of the regime (i.e. effective from March 1, 2027). Flats that have been successfully registered and obtained a grace period can continue to be let out under their pre-existing tenancies until the grace period expires (i.e. on or before February 28, 2030). Therefore, the Housing Bureau (HB) will not immediately take enforcement actions in one go. Instead, the HB will adopt a pragmatic, people-oriented and risk-based approach when taking enforcement actions in a reasonable, compassionate and orderly manner against illegal letting of SDUs, so as to ensure that SDU households will not be displaced due to relevant enforcement actions.
On the understanding that there may be situations in the market where SDU owners and tenants need to discuss their rental arrangements for various reasons, the HB has made strategic arrangements before the start of the grace period under the BHU regime. It is worth mentioning that since the six Subdivided Unit District Service Teams (DSTs) (website: www.hb.gov.hk/eng/policy/housing/policy/tenancy_control/dist_serv_teams.html
Prior to the roll-out of the BHU regime, some SDU tenants at Yee Wa Building in Cheung Sha Wan were requested in end-2025 to move out by their landlords. Once this incident had come to the HB’s notice, the HB immediately co-ordinated with the six DSTs, especially those operated by the Hong Kong Single Parents Association and the New Home Association, to provide continuous and comprehensive support to the affected tenants. To date, DSTs have contacted the vast majority of about 150 affected households renting SDUs in Yee Wa Building. Amongst them, about 110 households have already moved out of Yee Wa Building over the past period, including relocating to LPH, TH, Hostels for Single Persons, etc with the assistance of DSTs. For the remaining 40 households that have not yet moved out and are still considering their future plans, DSTs will continue to proactively provide them with all feasible assistance to help them identify suitable accommodation. This incident reflects DSTs’ ability to effectively handle unexpected cases involving relatively more households, where they have assisted the households in relocating to new accommodation through their continued liaison and co-ordination with relevant stakeholders (including landlords, principle tenants, tenants, operating organisations of LPH/TH/Hostels for Single Persons, estate agents, etc).
After the roll-out of the BHU regime, DSTs have so far received 35 cases from different buildings where individual households renting SDUs were asked by their landlords to vacate within a short period of time. DSTs has assisted 10 such households in need to apply for TH, while the remaining 25 cases are being proactively followed up to ensure relevant tenants will not be displaced. Besides, to plan in advance and prevent potential forced evictions, the HB proactively identifies target buildings with SDUs that may undergo alteration works soon through various intelligence channels (such as news reports on investment and transaction of SDUs, DSTs’ observations and communication with the local community). The HB will then accord priority in arranging for DSTs to conduct preventive home visits at relevant buildings, providing comprehensive support to households in need as early as possible. On the road to eradicating substandard SDUs, the HB will make utmost efforts to support affected grassroots households in improving their living conditions.
Having consulted the Rating and Valuation Department (RVD), the reply to the question raised by the Hon Grace Chan is as follows:
(1) The Census and Statistics Department regularly conducts population censuses and compiles statistics on persons living in SDUs in residential buildings. The most recent population census was conducted in 2021, while the 2026 Population Census commenced in January 2026. The results of the 2021 Population Census showed that there were about 108 200 SDUs in Hong Kong, providing accommodation for a total of about 107 400 households.
Besides, Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) which implements tenancy control on SDUs, came into effect since January 2022. It requires landlords to submit for each SDU tenancy a completed Notice of Tenancy (Form AR2) to the RVD within 60 days after the term of the tenancy commences to notify the RVD of the particulars of the tenancy, including the address, rent, tenancy term, and the area and facilities of the SDU, etc. If a landlord, without reasonable excuse, refuses or neglects to comply with this requirement, the landlord commits an offence and is liable on conviction to a maximum fine at level 3 ($10,000). As at end-April 2026, the RVD processed 86 332 Form AR2s, and the relevant breakdown by year is as follows: