Plan to wipe out substandard flats in Hong Kong may eliminate cheaper homes: operator
Concern group also says tenants affected by plan will need help relocating as they may be left with few affordable options
A proposed government plan to wipe out substandard flats could eliminate cheaper subdivided homes and force tenants to relocate with limited options, a leading Hong Kong operator and a concern group have warned.
Hayson Chan Hin-hay, business development director of rental company Rent to Rent Innovation, said on Thursday the new law could be difficult to enforce while some landlords might exit the market entirely due to reduced profits from hefty renovation costs.
“The most important concern is profit, because that’s why we are renting out these units. However, we now have to fulfil the new standards and face hefty penalties,” Chan said. “Many investors are hesitant to renovate their flats or offer new ones to the market.”
Under the authorities’ plan, subdivided flats must fulfil a set of standards laid down for “basic housing units”, which include a minimum size of 86 sq ft, a ceiling height of 2.3 metres (7.5 feet), proper windows and at least one toilet for each unit.
The flats must also fulfil fire and structural safety requirements.
A public consultation on the regulatory scheme will be rolled out next Monday, with a Legislative Council document proposing a maximum penalty of HK$300,000 (US$38,550) in fines and a three-year jail term for offenders who rented out unregistered flats or registered ones that failed to meet minimum requirements.
