Tenants in Hong Kong's subdivided flats might face increased expenses due to new regulations permitting landlords to pass on certain costs.
Ready to dive in? Here's a rundown of the situation with substandard subdivided flats in Hong Kong.
Hayson Chan Hin-hay, bossman of the Hong Kong Basic Housing Units Operators Association, spilled the beans on a radio show. He revealed that the certification expenses for a flat split into four units could cock an eye-watering HK$50,000 (roughly US$6,340).
The new statutes, gazetted last Friday, set the stage for a long-anticipated legal framework geared at ousting subpar subdivided flats. Enforcement is slated for 2027.
The brass tacks? Subdivided flats must tick off a series of must-haves listed for "basic housing units." These prerequisites involve a room with a minimum size of 86 sq ft, a 2.3-meter ceiling, decent windows, and at least one lavatory per unit.
Landlords can cash in on the registration of their subdivided flats if they meet official standpoints and secure accreditation. These domiciles will stay up for grabs if they make the cut.
The government will demand landlords fork over a HK$745 registration fee and a HK$3,000 accreditation fee for each subdivided dwelling. However, the government will dish out various fee concessions to discourage last-minute tweaks to rental properties.
Now, here's where it gets tricky—additional professional certification fees, such as reports showcasing compliance with baseline requirements (e.g., unit size, enclosed toilet), can inflate the overall costs significantly.
Chan estimates that the costs for a flat split into four units might reach up to HK$50,000. This figure encompasses government fees plus professional fees, which some pros assess could range from HK$15,000 to HK$30,000. Thus, the cumulative expenses for registration, accreditation, and professional certification might total between HK$40,000 and HK$50,000 per flat split into multiple parts[1][3][4].
Bonus tidbit: there's a 36-month grace period during which the HK$3,000 accreditation fee can be waived or reduced if landlords complete the necessary mending tasks ahead of the deadline, scheduled for February 2030. Yet, the HK$745 registration fee remains[1][3].
To wrap it up, the certification costs for subdivided flats in Hong Kong under the new regulations consist of:
- Registration fee: HK$745 per subdivided flat
- Accreditation fee: HK$3,000 per subdivided unit (potentially waived/reduced if rectified within grace period)
- Professional certification fees: Approximately HK$15,000 to HK$30,000 per flat
- Total estimated cost for a flat split into four units: Up to HK$50,000 including all fees and professional costs[1][3][4].
- In the business world of Hong Kong, the cost of certifying a subdivided flat for compliance with the new regulations can reach up to HK$50,000, involving government fees, accreditation fees, and professional certification fees.
- Society and finance are closely intertwined in the matter of substandard subdivided flats in Hong Kong, as the extensive certification process can impact the overall operation and investment in the real-estate sector.
- Understanding the financial implications of the certificate requirements for subdivided flats is crucial for any investor or business operator involved in the property market of Hong Kong.
