Gov’t proposes policy to reclassify compliant SDUs as basic housing units

This will allow owners of upgraded SDUs to apply for BHU recognition.

The government has proposed a new housing policy which seeks to categorise subdivided units (SDUs) that meet required standards as Basic Housing Units (BHUs).

In the 2024 policy address, the government said that this policy will allow owners of substandard SDUs that are upgraded to meet BHU standards can apply for BHU recognition.

Deputy Financial Secretary Michael Wong said that it is necessary to rename compliant SDUs as BHUs to highlight the compliance.

Wong said that the new policy may blur the meaning of SDUs, as both compliant and non-compliant units could coexist but BHU standards are very clear.

In addition, he added that the new housing policy will unlikely lead to a drastic drop in the supply of subdivided flats.

“Our survey has shown that about 70% of the currently existing SDUs will be able to comply with our requirements with minimal alterations, if any,” he said.