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The SDU Dilemma: Housing Rights and Policy in Hong Kong

Examines the issue of sub-divided units (SDUs) in Hong Kong, exploring the conflict between property rights and the right to housing, market and government failures contributing to the problem, and policy responses including regulatory measures, increased housing supply, and community support.

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In the dense urban landscape of Hong Kong, a unique and controversial housing phenomenon has emerged: the sub-divided unit (SDU). While not explicitly defined in the Buildings Ordinance, these units are commonly understood as domestic flats that have been partitioned into two or more self-contained smaller units for rental purposes. For many low-income residents, these units represent the only "affordable" option in a city where the private rental market has seen prices double in a single decade. However, this market response to housing unaffordability brings with it profound questions regarding legal safety, the clash of fundamental rights, and the effectiveness of government intervention.

The Reality of Sub-divided Units: Safety and Market Failure

The proliferation of SDUs is a symptom of two simultaneous failures: market failure and government failure. Market failure is evident in the widening gap between private housing rents and median household income; between 2009 and 2019, the rent index rose from 95.4 to 200.1, far outstripping the 69.05% increase in median income. Simultaneously, government failure is seen in the long waiting lists for Public Rental Housing (PRH), which reached over 245,200 applications with an average waiting time of 6.1 years as of March 2022. This lack of public supply, coupled with a deep-rooted shortage of "spade-ready" land, forces low-income dwellers into the SDU market.

The physical reality of these units often compromises the "right to housing" in terms of habitability and safety. Sub-dividing a flat typically involves destroying original partition walls and installing new electrical wiring, water, and drainage systems. These modifications can increase the building's structural loading and create significant fire safety risks, such as blocked escape routes or a lack of openable windows.

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