Hong Kong’s government received registration applications for only 42.5 percent of subdivided flats expected during the initial six-month “early bird” phase under new housing regulations aimed at improving living conditions. The deadline for this first registration period under the Basic Housing Unit Ordinance passed on Monday, marking the halfway point of the one-year application window.

Introduced in March, the legislation seeks to phase out substandard subdivided flats by requiring landlords to register their properties and comply with upgraded standards. The government estimates approximately 80,000 flats could be accredited, but only around 34,000 units were registered in the early bird phase. Landlords who submitted applications during this period were eligible for a waiver of HK$3,000 in certification fees per unit for each of the first three years.

Industry observers attributed the lower-than-expected registration rate to complex property ownership situations and insufficient public awareness. Scott Leung Man-kwong, deputy chairman of the Legislative Council’s housing panel, described the response as “acceptable” given these factors but noted the HK$3,000 fee waiver was not a strong incentive. He pointed out that inherited properties often complicate applications, citing cases where legal ownership has not been formally transferred despite tenants continuing to pay rent. The registration process now requires proper verification of ownership, prompting some landlords to address outstanding legal issues.

A second six-month registration phase is already underway, offering smaller fee discounts, and will conclude the full one-year application period. Landlords have been given a three-year grace period to renovate units to meet government standards. Leung suggested that rents for renovated flats might increase—potentially rising from roughly HK$5,000 to HK$7,000—as owners seek to recover renovation expenses. However, he expressed confidence that overall rent levels will eventually decline with the wider availability of public housing and certified basic housing units.

Jerry Ho Chi-pang, vice-chairman of the Hong Kong Basic Housing Units Operators Association, emphasized the need to enhance public engagement by organizing more briefing sessions in various districts. He highlighted that current outreach efforts, such as those conducted in Tsuen Wan, are insufficient to reach owners in areas like Sham Shui Po, Mong Kok, and Yau Ma Tei. Ho noted that residents, particularly seniors, may find it difficult to attend sessions held far from their neighborhoods.

Similarly, lawmaker Vincent Cheng Wing-shun advocated for sharing sessions involving landlords who have completed registration to encourage participation from those still undecided. He also recommended that authorities continue offering show flats to landlords, providing practical guidance on renovation and budget planning to facilitate compliance with the new housing standards.