Subdivided flat

The insufficient supply of housing in Hong Kong is one of the important forces leading to subdivided units. According to the Grassroots Housing Rental Price Research Report 2011, released by the Society for Communication Organisation, the Hong Kong government's failure to accurately forecast future housing demand is the leading cause of the shortage. After the government reduced the building of public housing from three million units to half a million units per year in 2006, the demand for public housing increased sharply. The waiting list for public housing increased from 129,000 to 152,000 in 2010 (a 17.8% rise within one year).[4] As a result of the long wait, many people turned to subdivided flats, where the rentals are much cheaper than private housing.

The second factor leading to the increased practice of subdividing flats is the widening wealth gap. Hong Kong's Gini Coefficient, (measure of income inequality), increased to 0.539.[5] In the Subdivided Units Study Report 2009 produced by the Society of Communication Organisation, the median monthly income of residents living in subdivided units was $3200 HKD, below the city's median monthly income population.[6]

Soaring rental prices compound the problem. The data in the "Private Domestic - Average Rents by Class" report provided by the Rating and Valuation Department found that from 2008 to 2011, rents increased by 15.1%,[7] making it challenging for lower-income residents to afford.

Subdivided flats were described as being "human-flesh steamers". The temperature inside is far hotter than it outdoors, because of poor ventilation.[8] Data from Society for Community Organisation found that the temperature in one flat in Sham Shui Po had reached 38.5 degrees Celsius, six degrees above the roadside figure.[9] Residents are often unable to afford the electricity to air condition, they struggle to survive in unventilated and windowless rooms. Improperly installed plumbing can lead to water seepage and unhygienic conditions.[10]

Residents in subdivided flats tend to have smaller social circles. Living in such poor conditions may lower their self-esteem. Residents tend to become less sociable and introverted. The overcrowded living environment leads family members to compete for space and is more likely to experience family conflicts.[11]

The process of adding non-structural partitions and openings in structural walls can adversely affect their structure, increasing the risk of collapse.[12] Buildings with subdivided flats are densely populated and feature narrow corridors, complicating escape from fire and other dangers.[13]

A three-alarm fire occurred in a tenement in June 2011 at 111 Ma Tau Wai Road, killing four people and an unborn child and injuring 19. Some tenants could not find a way out and survivors complained of locked emergency exits. A fire burned Fa Yuen Street in December 2011. Both tragedies revealed the lack of safety of such living arrangements.[14]

The Hong Kong government launched an investigation in April 2011.[15] The Buildings Department made a large scale operation to inspect 150 target buildings every year for rectifying buildings with sub-divided flats. The Buildings Department deployed over 480 professionals and staff to investigate the sub-divided flats. The report showed the success of the investigations. 170 removal orders were issued in January 2012.

Under the Community Care Fund Relocation Allowance,[16] the government launched an assistance programme for occupants to move out of partitioned flats in industrial buildings. Individual tenants can get a $2,100 allowance; 4 tenants or more can receive a $6,100 allowance.

Apart from launching the investigations and providing relocation allowances, the government allows both owners and tenants to consult building professionals to rectify irregularities and report situations to the Buildings Department.[17]

In July 2021, the government announced a bill that would put rent-control limits on certain subdivided flats,[18] the bill was passed on 20 October 2021[19] and has been incorporated as Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7), which took effect on 22 January 2022.

The Rating and Valuation Department is responsible for the implementation of the Ordinance, which include promoting public awareness of the regulatory regime; handling enquiries; providing free advisory and mediatory services to tenants and landlords on tenancy matters; and taking enforcement action as appropriate.[20] The Government has engaged non-governmental organisations to set up six district Service Teams,[21][22][23][24][25][26] assisting Rating and Valuation Department to promote the new legislation to implement the tenancy control on subdivided flats at district level; raising public awareness of the new regulatory regime under the new legislation; and handling general enquiries, etc. The Government has also engaged a non-governmental organisation to establish and manage a Tenancy Control of Subdivided Units Information Portal[27] (website: www.sdu-info.org.hk) for sharing of information relevant to tenancy control on subdivided flats for publicity and education purpose.