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Source: Hong Kong Government special administrative region

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:
 

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Cheung Pui-kong and a reply by the Acting Secretary for Health, Dr Cecilia Fan, in the Legislative Council today (May 20):

Question: 
(i) Upstream interception of smuggling: The C&ED combats smuggling via cargo and postal parcels through maintaining intelligence exchange with the Mainland law enforcement agencies and overseas law enforcement agencies. Currently, penalties for duty-not-paid cigarettes have been significantly increased. The number of large-scale cigarette smuggling cases detected by the C&ED rose from 40 in 2024 to 126 in 2025. The C&ED has strengthened enforcement at control points, with a real-time notification mechanism established with the Mainland to stop passengers from bringing in excessive duty-free cigarettes using the “ant-moving-home” tactic. Penalties for offences of failing to declare to Customs Officers compoundable have been increased; the number of cases by imposing a penalty on offences compoundable intercepted by the C&ED at control points rose from 19 071 in 2024 to 26 982 in 2025. The rise in the number of cases involving the seizure of illicit cigarettes reflects the effectiveness of the C&ED’s enhanced efforts in combating illicit cigarettes, and the success of these enforcement strategies does not imply that the scale of illicit cigarette activities has expanded. To further combat illicit cigarettes, the Government will fully implement the Duty Stamp System by December 2027, requiring duty-paid cigarette packs to be affixed with stamps so that law enforcement officers and the public can clearly distinguish between duty-paid and duty-not-paid cigarettes.

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Shiu Ka-fai and a written reply by the Acting Secretary for Health, Dr Cecilia Fan, in the Legislative Council today (May 20):

Question:

     It has been learnt that the Government plans to initiate legislative amendments in a timely manner to launch the Computerised Transaction Record System (the system platform), mandating licensed pharmaceutical traders (including pharmacies) to systematically record prescriptions and dispensing of antimicrobials (including antibiotics) through electronic means. However, members of the sector have relayed that some private medical practitioners currently purchase large quantities of medicines such as antibiotics through channels such as pharmaceutical manufacturers and then resell them to pharmacies via intermediaries for profit. In this connection, will the Government inform this Council:

(1) of the latest progress of the legislative amendment exercise for the implementation of the system platform, and whether it has deliberated with stakeholders of the sector on such exercise; if so, the details;

(2) whether the Department of Health has identified any acts by the aforementioned medical practitioners involving suspected purchase and resale of large quantities of antibiotics in violation of regulations; if so, of the number of such cases received over the past five years;

(3) how it currently ascertain the quantities and sources, as well as the utilisation and usage, of medicines such as antibiotics purchased by individual medical practitioners; and

(4) whether it has any plans to mandate private medical practitioners to record antimicrobial prescriptions and dispensing on the system platform; if so, of the details; if not, whether it will consider separately formulating a systematic mechanism to comprehensively record the total quantities of medicines such as antibiotics purchased by private medical practitioners?

Reply:

President,

     Having consulted the Department of Health (DH), the reply to the Hon Shiu Ka-fai’s questions is as follows:

Control of sale and supply of antibiotics

     According to the Pharmacy and Poisons Ordinance (Cap. 138) and the Antibiotics Ordinance (Cap. 137), licensed wholesale dealers are legally required to record all information related to pharmaceutical products (including antimicrobials) acquired or disposed of by way of wholesale dealing, which includes the acquired quantity, supplied quantity, name of the supplier, and the person to whom they are supplied (including licensed pharmacies, registered medical practitioners, and more). Furthermore, a registered medical practitioner can only sell or supply antibiotics for the purpose of treatment and must maintain the relevant records of the antibiotics obtained by him. Any person who contravenes the relevant requirements regarding the control of the sale and supply of antibiotics commits an offence and is liable to a $50,000 fine and imprisonment for 12 months. Any person who contravenes the requirement of maintaining records shall also be guilty of an offence and shall be liable on conviction to a $5,000 fine.

Effort against the threat of antimicrobial resistance

     Antimicrobial resistance (AMR) (Note 1) is listed as one of the global public health threats by the World Health Organization. To tackle the threat of AMR to public health, the Government set up the High Level Steering Committee on Antimicrobial Resistance in 2016 with a view to encouraging the collaboration, synergy and cross-fertilisation among all professional sectors under the “One Health” framework. In 2022, the Government launched the second Hong Kong Strategy and Action Plan on Antimicrobial Resistance (the Action Plan) to map out response strategies towards the threat of AMR for 2023 to 2027.

     One of the recommendations of the Action Plan is to strengthen the regulation of over-the-counter purchases of prescription-only antimicrobials, which includes reviewing and considering amending relevant ordinance(s) to mandate the systematic recording of antimicrobial prescription and dispensing data through electronic means. According to the recommendations in the Action Plan, the Government has been developing the antimicrobials computerised transaction record system platform by phases to systematically record information on the acquisition and supply of antimicrobials in the supply chain (from wholesale to supply to end users) electronically, so that the legitimate use of antimicrobials in the market can be more effectively monitored. The Action Plan formulated the collection of electronic antimicrobials usage data in community pharmacies and in private clinics in 2025 and 2027 respectively.

     Phase 1 of the system platform was launched in June 2025 for voluntary participation by licensed drug dealers of antimicrobials, including manufacturers, wholesale dealers, and retailers (i.e. authorised sellers of poisons, which are commonly referred to as pharmacies). As of May 11, 2026, 54 per cent of the relevant licensed drug dealers had completed their registration on the system platform. The Government is preparing to develop Phase 2 of the system platform to collect antimicrobials usage data covering private clinics targeting to launch in 2027.

     In setting up Phase 1 of the system platform, the Government had extensively communicated with and collected views from various stakeholders, which included inviting licensed drug dealers with a large transaction volume of antimicrobials to attend the first and second user acceptance tests held from August to September 2024 and in February 2025 respectively. Furthermore, the DH organised four briefing sessions from October 2024 to May 2025 to introduce the development and progress of the antimicrobials computerised transaction record system platform to the industry and encourage them to use the system platform.

     On the other hand, the Electronic Health Record System Ordinance (Cap. 625) empowers the Secretary for Health to require specified healthcare providers to deposit specified health data into the personal eHealth accounts of citizens registered with eHealth. Among these, the Government will consider specifying important medication records, such as antimicrobial prescriptions and dispensing records, as a specified health data category. This will assist citizens in depositing relevant information into their eHealth accounts, thereby supporting clinical diagnosis and more effectively addressing the public health risks posed by AMR.

Enforcement actions

     In the past three years (from 2023 to 2025), the Drug Office of the DH conducted around 3 800 unannounced inspections of local pharmacies. During the same period, it handled 21 conviction cases involving the illegal sale of prescription drugs (including but not limited to antimicrobial drugs) by pharmacies. Among these 21 cases, the highest fine imposed was $72,000 (the total fine for all counts of offences), and there was a convicted person sentenced to two months’ imprisonment (suspended for three years).

     According to records, in the past five years, there have been no cases involving registered medical practitioners contravening the Antibiotics Ordinance. The Medical Council of Hong Kong also does not have any disciplinary sanction records related to registered medical practitioners purchasing large quantities of medicines such as antibiotics for resale for profit.

     The DH will continue to collect intelligence from different channels and, in accordance with established mechanisms, monitor the acquisition and supply of medicines (including antimicrobials) in the market. If the DH detects any persons suspected of illegal acquisition or sale of prescription drugs and antibiotics, it will promptly investigate and deal with the irregularities in accordance with the law.

     The DH will also continue to mobilise various professional sectors to effectively implement the recommendations under the six key areas stated in the Action Plan and collaborate with the World Health Organization to jointly address the threat posed by AMR to public health.

Note 1: AMR occurs when microorganisms evolve and become resistant to previously effective medications. When patients are infected with drug-resistant bacteria, their illness may be prolonged, and their risk of death may even increase. The misuse and overuse of antibiotics are the major factors leading to the development of drug-resistant bacteria.

Source: Hong Kong Government special administrative region – 4

The Government welcomed the passage of the Stamp Duty (Amendment) Bill 2026 by the Legislative Council today (May 20) to increase the stamp duty rate for residential property transactions with an amount or value of consideration (whichever is higher) above $100 million from 4.25 per cent to 6.5 per cent with effect from February 26 this year, as proposed in the 2026-27 Budget.
 
A Government spokesperson said, “The measure upholds the principle of ‘affordable users pay’, and is expected to increase government revenue by about $1 billion per year. Only about 0.3 per cent of the highest-priced residential property transactions will be affected.”
 
The above legislation as passed will be gazetted on May 29. In respect of the applicable transactions with instruments executed between February 26 and May 28 this year, the Inland Revenue Department (IRD) will issue letters to the relevant solicitors, requesting the buyers or sellers of those transactions to pay the difference between the old and new stamp duty by June 29. If the difference is not paid within the time limit, the IRD will impose a late stamping penalty of up to 10 times the difference, and may recover the outstanding stamp duty through civil proceedings.

Source: Hong Kong Government special administrative region