Hong Kong landlords split over costly upgrades to meet subdivided housing law

South China Morning Post · Feb 28, 2026 · Collected from RSS

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Some Hong Kong landlords have spent millions renovating their subdivided flats to be among the first to meet the new standards coming into effect on March 1, but many others remain taken aback by the high costs and are unsure whether to proceed.Building experts have also warned of the challenges facing landlords seeking certification under the new law, including meeting waterproofing and fire safety requirements, which will require professional advice and supervision.Matthew Lau Chi-kwong, a landlord operating more than 500 subdivided homes across over 50 whole flats, is among the first to rectify his properties.“My stock is too big. I have to follow the government policy … However, I will not rush to rectify all of them to stay flexible,” he said.Lau has spent around HK$2 million (US$255,672) to upgrade 20 standard flats by merging smaller units and installing windows, among other works. One project involved converting a flat of more than 1,000 sq ft in Happy Valley into four subdivided homes, each renting for about HK$13,000 per month.Hong Kong aims to improve subdivided flats, but will it help or hurt the city’s poor?Hong Kong aims to improve subdivided flats, but will it help or hurt the city’s poor?The Basic Housing Units Ordinance stipulates that only subdivided homes that meet minimum standards and are certified by building professionals can be legally leased. Those failing to comply face a maximum fine of HK$300,000 and three years’ imprisonment.