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Hong Kong property
Business
Alnwick Chan

Concrete Analysis | Tenancy control on subdivided flats: a step forward, not long-term solution to Hong Kong’s housing crisis

  • An amended bill could be passed and gazetted by early 2022, if not sooner, to protect tenants from being exploited by landlords
  • More incentives are needed to attract wider private-sector involvement to help end Hong Kong’s deep-seated housing crisis

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A may 2020 file picture showing a general view of new and old residential buildings in New Territories, Hong Kong. Photo: AFP
Housing crisis has long been a pressing issue for Hong Kong, one of the most expensive property markets in the world.

Amid a lack of affordable housing, the waiting time for public rental housing is 5.8 years on average. Many low-income households therefore have no choice but to live in subdivided units (SDUs), with poor living conditions at high rents.

As a result, the government introduced the Landlord and Tenant (Consolidation) (Amendment) Bill 2021 to protect the interests of SDU tenants and imposing control on SDU tenancies. The amendment could be passed and gazetted by early 2022, if not sooner.

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The bill is a bold action to protect the rights of at least 226,000 people from low-income families currently living in about 110,000 SDUs from being disadvantaged or forced to move out because of steep rental increases. It is only a first step, not a long-term solution to the deep-seated housing problems of the city.

04:11

Tiny 290sq ft temporary housing a welcome upgrade for some low-income Hong Kong families

Tiny 290sq ft temporary housing a welcome upgrade for some low-income Hong Kong families

The bill is expected to provide a safety net for SDU tenants with a four-year security of tenure. With the first lease being fixed on a two-year term, the rent can only be reduced and not raised. Also, SDU tenants can terminate the lease by giving a one-month notice within the first 12 months of the tenancy.

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