Lee says new subdivided units policy balances demand and market health

He also noted that the new system does not intend to make what is illegal legal.

Chief Executive John Lee said that the new policy of regulating subdivided units (SDUs) strikes a balance between meeting the genuine demand for these flats and ensuring a healthy market. 

Lee proposed in his policy address to set minimum standards to eradicate inadequate SDUs through legislation.

Elaborating on the policy initiatives at a press conference, Lee highlighted that the system he plans to introduce through legislation does not intend to make what is illegal legal.

“Enforcement will be taken accordingly, and of course, we will step up enforcement in concert with the new policy of subdivided flats, which will be introduced in residential buildings,” he said. 

“The intention is to first of all regulate the subdivided flats using this basic housing concept so that we have a standard below which we will take action against owners because it will not be regarded as the right standard for our households to live in,” Lee added. 

Acknowledging that eradicating inadequate SDUs is a difficult matter, he expressed hope that the proposed system could be thoroughly debated in the legislative council to enable the government to enhance it.

“We also want to ensure the new system will be able to tell the market, which in some way needs to exist by the sheer evidence that over 110,000 households are living in this accommodation,” Lee said. “We want this market to be healthy in its existence.”

The Chief Executive also said the government will allow a grace period for pre‑existing SDU owners and households to make necessary arrangements and handle SDUs in residential buildings in batches.

Lee also added that he is determined to solve the problem.

“I think we have to be realistic as to why subdivided flats have existed for a long period of time—because of need, because of the actual need of households, because of a lack of enough supply of flats,” he said.