Korver Li, ComHome Social Housing Platform Limited

After the Policy Address 2024, subdivided units (SDUs) issue was widely discussed. The latest figures of SDU residents can be only traced back to the report from the Task Force for the Study on Tenancy Control of Subdivided Units in 2021. Their report revealed that more than 110,000 households live in subdivided units.

Around 21.3% of SDU households, i.e. 23,000 households living in SDUs which were below 7 square metres. A standard parking space is 10 square meters.  It is smaller than a standard parking space.  Around 18.1% of SDU units i.e. 20,000 units had shared toilets. Around 12.5% of SDU units, i.e. 14,000 units, kitchen combined with toilet. Around 3.1% units, i.e. 3,400 units did not have windows and 1.7% units, i.e. windows of 1,900 units could not be opened.

The median monthly rents of SDU were $4,800. In our experience, a rental of 4,800 dollars can currently only afford an approximately 80-square-foot unit. However, a single recipient of the Comprehensive Social Security Assistance (CSSA) Scheme currently receives only about 2,500 dollars in housing allowance.

In the latest policy address, the government proposes the “Basic Housing Units” as the new measure to reduce the number of substandard SDUs. All substandard SDUs have to be converted to Basic Housing Units with a set of parameters including the provision of windows, an individual toilet, and floor area of not less than eight square meters.

On the other hand, to address the issue of subdivided units, the government has proposed to increase the supply of public housing, transitional housing, and Light public housing. However, transitional housing and Light public housing are meant for short-term residence; applicants must have been waiting for traditional public housing for three years or more, yet they can only stay for 2 -3 and 5 years, respectively.

According to the 2021 task force report, approximately 30,000 subdivided units (SDUs) are currently unfit as “basic housing units” and should be eradicated. The same report noted that 33,000 households have not applied for public housing, primarily because they are either new immigrants or have exceeded income or asset limits to be eligible for applying for public housing. Even with the government’s pledged increases in Transitional Housing, Light Public Housing, and Public Rental Housing, these households may not qualify for resettlement once the new regulations are implemented. This is largely because most of these SDUs households are new immigrant families or families whose income exceeds the application requirement for public housing.

So, where will they go? No clear rehousing measures have been proposed since last year, when the Chief Executive announced the Task Force on Tackling the Issue of Subdivided Units.

We are also disappointed that the policy address did not further discuss or implement follow-up measures on SDU rental regulation, as effective enforcement of the law remains uncertain. The number of SDUs may decrease and rents may rise. Without a rent ceiling, landlords will be the main beneficiaries. We urge the government to take the following actions:

Establish a social service team similar to the ComHome Social Housing Platform, which not only provides social support services but also acts as a social rental agency to foster fair tenancy relationships between tenants and landlords. Refine the SDU rental regulation ordinance, implementing a rent ceiling next year to protect those who cannot be resettled in government housing.

Fulfill plans to build sufficient public rental and other forms of transitional housing within urban areas. We’d like to delicate this song Space Capsule by Leo Ku to everyone.