Majority of Hong Kong apartment tenants residing in subdivided flats can endure a rent increase of no more than 5%, according to a recent survey.
In the heart of Hong Kong, a city known for its sky-high living costs, a significant change is on the horizon for tenants living in subdivided flats. A proposed regulatory regime aims to improve living conditions by ensuring minimum standards for these compact dwellings. However, concerns about potential rent increases have surfaced among tenants.
A recent survey revealed that over 70% of subdivided flat tenants can only afford a rent increase of less than 5% if new regulations push prices higher. About 18% might bear a 5-10% hike, but very few can tolerate more than that. Only 6 respondents can manage a rent increase of more than 10%. The majority of tenants, 78%, pay HK$7,000 or less per month for their subdivided homes.
The regulatory regime, which is set to pass by the end of October 2025, will accredit 'basic housing units' that meet minimum size, window, and toilet requirements. Landlords will be allowed to register their subdivided flats starting March 2026, with a grace period until February 2030 to rectify any issues. This phased approach may delay rent impacts, but it also means tenants are living in substandard conditions until improvements are made.
Subdivided flats currently house a vulnerable, low-income population who often endure cramped, hot, and poorly ventilated conditions. The regulatory regime is intended to eliminate or upgrade substandard units, improving safety and habitability. However, the increased costs to landlords may translate to rent hikes that many tenants struggle to afford.
59% of tenants hope the regulation does not cause "massive" rent increases, and 45% call for government rental subsidies to mitigate the impact. In summary, the regulatory regime will likely improve housing quality but may lead to rent increases that the majority of subdivided flat tenants can barely tolerate, highlighting the need for accompanying rental subsidies or other support measures to prevent worsening housing affordability for this low-income group.
- The regulatory regime, intended to enhance living conditions in subdivided flats, has sparked concerns among tenants about potential hikes in rental expenses, as revealed by a survey indicating that 78% pay HK$7,000 or less per month and can barely tolerate rent increases of more than 10%.
- The ensuing debate over the regulatory regime involves calls for government intervention, with 59% of tenants demanding that it does not cause "massive" rent increases, and 45% advocating for rental subsidies as a means to mitigate the impact on low-income residents, highlighting the intersection of finance, politics, business, and general-news in this matter.
