Bid to turn 14 subsidised sale flats into subdivided homes raises abuse concerns

The owners of 14 subsidized sale flats in Hong Kong have requested a grace period to adhere to the city's new regulations for subdivided homes, prompting concerns over potential misuse of public resources, according to housing minister Winnie Ho Wing-yin. During a Legislative Council housing panel meeting, lawmaker Mark Chong Ho-fung raised the issue of using subsidized sale flats as subdivided units for rental purposes, stating that such flats are a form of social welfare and should not be exploited for profit.

Ho emphasized that it is illegal for owners to lease subsidized sale flats without paying the premium, with penalties including a maximum fine of HK$500,000 and a one-year prison sentence under the Housing Ordinance. She explained that renovating a subsidized sale flat into a basic housing unit involves technical considerations and structural restrictions, such as a building's specific layout and design.

To qualify as a basic housing unit under the Basic Housing Units Ordinance, subdivided flats must meet certain minimum standards, including a minimum area of 86 square feet, a ceiling height of 2.3 meters, a separate waterproofed toilet, and operable windows. Landlords can apply for a three-year grace period to make necessary alterations, with registration open between March this year and next February.

Ho noted that around 73,600 subdivided units have registered for the grace period, involving more than 20,000 complete flats, with only 14 cases (0.07 percent) of subsidized sale flats seeking accommodation. The government has closely monitored the situation, with authorities approving 42 out of 184 applications for certification as basic housing units.