Hong Kong’s Housing Bureau has approved the city’s first three subdivided units as meeting official minimum standards, marking a significant step in the government’s efforts to regulate these often-criticized living spaces. The approved units, located in a flat in Sham Shui Po, were submitted by Hayson Chan Hin-hay, chairman of the Hong Kong Basic Housing Units Operators Association, who filed the application in late May.

Chan, whose company Innovation operates and renovates subdivided flats, spent about HK$151,700 on upgrading the three units on Cheung Sha Wan Road since March. The renovations included the installation of new drainage systems, fire-rated doors, fire safety equipment, individual utility meters, and ventilation fans. Importantly, the units did not require alterations to their existing layouts.

Describing the approval process as “simpler than expected,” Chan highlighted the helpfulness of government staff, who provided clear guidance throughout. Authorities conducted property inspections and required additional documentation, such as a waterproof test for the cooking areas. Chan emphasized the necessity of engaging professionals knowledgeable in regulatory requirements, particularly in water supply and electrical systems, warning that landlords without such expertise could face costly delays and expenses.

Rent for the newly approved units, which measure between 100 and 180 square feet, will initially remain unchanged. Chan expressed concern about tenant retention, noting that vacancy costs would pose a financial risk. He acknowledged the possibility of future rent adjustments would depend on market conditions. According to the Rating and Valuation Department, the average monthly rent for subdivided units in Sham Shui Po was HK$4,800 between January and March this year.

Following this development, Chan anticipates a rise in applications for certification among subdivided flat owners. His association and company plan to submit at least five certification applications this month, with an additional 50 fully renovated flats awaiting rectification work. He suggested the confirmation of a successful case might encourage more landlords to seek certification instead of merely registering for a grace period.

The Housing Bureau has allowed landlords until the end of February next year to apply for a three-year grace period to complete necessary improvements. After March, the government will enforce regulations against leasing subdivided flats without certification or a valid grace period registration. The bureau previously estimated that approximately 70 percent of the city’s 110,000 subdivided flats require only minor modifications, while major renovations are restricted.

A spokesperson for the Housing Bureau described the approval of the first three units as evidence that the standards are “practical and realistic,” with the approval process taking about one month. The bureau also reported receiving registration applications for around 20,000 subdivided flats over the past four months, equivalent to about 5,000 residential units, and characterized this level of response as “satisfactory.”