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A concern group in Hong Kong has expressed disappointment with the new measures announced in Chief Executive John Lee’s policy address to phase out “unliveable” subdivided flats. The Concerning Subdivided Units Alliance called for a comprehensive resettlement plan and stronger rent controls to address the issue of substandard housing.

While the government’s plan includes phasing out subdivided flats smaller than eight square meters and those without windows and toilets, it does not cover the city’s infamous “coffin homes.” The alliance emphasized the importance of rehousing measures for affected tenants to effectively implement the policy.

Additionally, the concern group urged the government to establish a timetable for phasing out inadequate subdivided units, specifying the number of units deemed unsuitable and outlining corresponding rehousing measures. Landlords will be given a grace period to bring their subdivided flats up to standard, and the alliance called for the registration of these flats within one year of the legislation.

Rent caps were also a key concern for the alliance, with a proposal to restrict rental costs to HK$37.5 per square foot. Lawmaker Michael Tien highlighted the complexity of rent controls, noting that improvements to units could lead to higher rents. Tien plans to address the issue of rent caps at the Legislative Council when the government submits its proposals.

In 2021, Hong Kong had 108,200 subdivided flats, with an estimated 250,000 people living in these cramped conditions. Beijing’s top official on Hong Kong affairs expressed hope for the eradication of subdivided flats and cage homes by 2049, recognizing the city’s deep-rooted housing crisis.

Chief Executive John Lee emphasized the need for a pragmatic approach to eliminate substandard housing, considering the demand for improved units that meet the new standards. As the government works towards addressing the housing crisis, the concern group continues to advocate for comprehensive rehousing measures and stronger rent controls to ensure the well-being of vulnerable tenants.