Government passes BHU Bill to regulate subdivided units

Only SDUs that obtain BHU recognition will be permitted for lease.

The Government has welcomed the passage of the Basic Housing Units (BHU) Bill, introducing the city’s first comprehensive regulatory framework for subdivided units (SDUs).

The BHU Ordinance will be gazetted on 3 October, and take effect on 1 March 2026, officials announced.

Aimed at improving the living conditions in SDUs — often criticised for safety hazards and poor hygiene — the new law sets out minimum standards that must be met before such units can be legally rented out.

These include requirements for floor area, ceiling height, fire and structural safety, individual toilets, adequate lighting and ventilation, and separate water and electricity meters.

Only SDUs that obtain BHU recognition will be permitted for lease. Criminal liability will apply to landlords who rent out unrecognised units, though tenants will not face penalties, according to the Housing Bureau.

To ease the transition, a 12-month registration window for existing SDUs will open when the ordinance takes effect. Registered units will be granted a 36-month grace period — starting 1 March 2027 — to carry out necessary upgrades and seek formal recognition.

An “early-bird” fee waiver for recognition applications will also be offered beginning 1 March 2026. Enforcement actions against unregistered or unrecognised SDUs will begin on 1 March 2027.

For affected households, the Government will provide temporary rehousing support, and Secretary for Housing Winnie Ho assured the public the regime will be implemented “in an orderly manner” to address substandard housing without abrupt displacements.