(To watch the full press conference with sign language interpretation, click here.)

Deputy Financial Secretary Michael Wong said that it is necessary to rename compliant subdivided units (SDUs) as Basic Housing Units (BHUs) to highlight the compliance.

Mr Wong, who heads the Task Force on Tackling the Issue of Subdivided Units, made the statement today during a press conference to elaborate on key initiatives in the Chief Executive’s 2024 Policy Address.

A new housing policy, which seeks to categorise SDUs that meet required standards as BHUs, has been proposed in the Policy Address unveiled yesterday. SDUs that meet the required standards will be named BHUs, and owners of substandard SDUs that are upgraded to meet these standards can apply for BHU recognition.

Mr Wong noted that it is never the Government’s intention to try to resolve housing issues just by coining another name for the SDUs, but renaming such units is a necessary step.

He explained that under the new policy, the meaning of SDUs will become unclear because while there will be SDUs that have complied with the new requirements, some other incompliant SDUs may still exist in the meantime.

“Basic Housing Units is very clear – they are all in compliance with the applicable requirements.”

Separately, Mr Wong said it is unlikely that the new housing policy will 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.”