Hong Kong’s lawmakers have taken a decisive step to address one of the city’s most pressing social issues: the prevalence of substandard tiny apartments, often known as subdivided flats or “cage homes.” On September 26, 2025, after hours of heated debate and a show of hands, the Legislative Council passed a bill that will ban inadequate housing conditions in these units and set strict new standards for their size and safety. The move comes as part of a broader effort to improve living conditions in one of the world’s least affordable cities—an effort that has the backing of Beijing, which has linked the city’s housing woes to the social unrest witnessed during the 2019 anti-government protests, according to multiple reports including the Associated Press and Reuters.
Under the new law, subdivided apartments must measure at least 8 square meters (86 square feet)—a minimum that, somewhat astonishingly, is still smaller than the standard size of a parking space in Hong Kong, which is 10 square meters (110 square feet). But the requirements don’t stop there. Each unit must also have a separate bathroom, fire safety facilities, adequate lighting, and proper ventilation. These measures are designed to address the worst excesses of Hong Kong’s subdivided housing, where it’s not uncommon to find a toilet bowl next to a cooking area, no bathroom sink at all, or shared washrooms among multiple neighbors.
According to the Associated Press, approximately 220,000 people currently live in such subdivided apartments. This population includes a broad cross-section of Hong Kong society: migrants, low-wage workers, students, and young professionals who simply cannot afford the city’s sky-high rents. The new law is expected to have a significant impact on this vulnerable group, as about one-fourth of the city’s 110,000 subdivided flats are smaller than the new minimum size, and an estimated 33,000 units—roughly 30% of existing subdivided apartments—will require major renovations to comply. The remainder will need simpler improvements.
Landlords won’t be forced to comply overnight. The government has built in a grace period, allowing property owners time to renovate substandard homes. But once this period ends, only apartments that meet the new standards may be legally rented out. Violators face stiff penalties: fines of up to 300,000 Hong Kong dollars (about USD 38,500), imprisonment for up to three years, and additional daily fines for ongoing offenses. To enforce these new rules, authorities plan to introduce a registration scheme for subdivided apartments starting in March 2026.
Notably, the policy does not extend to the city’s notorious “bed spaces”—tiny, dormitory-like cubicles considered by many to be the absolute nadir of Hong Kong’s housing crisis. These are regulated under a separate law and remain outside the scope of the new bill. As Reuters reports, these bed spaces offer little more than enough room for a single bed and a few personal belongings, underscoring the persistent challenges the city faces in providing dignified housing for all its residents.
Housing Secretary Winnie Ho, who has become the public face of the government’s efforts, acknowledged the pain and suffering caused by substandard housing. "It is painful to see people living in substandard conditions and these sufferings should not occur in Hong Kong," Ho stated, as quoted by Reuters. She also addressed concerns that the new regulations could lead to a surge in rents, reassuring the public that "the rent would not significantly jump." For those who may be displaced by the new standards, Ho promised that transitional apartments will be made available to eligible residents, providing at least a temporary safety net during the transition period.
The bill’s passage is widely seen as a response to pressure from Beijing, which has identified Hong Kong’s housing crisis as a driver of social discontent. The 2019 protests, which shook the city and drew international attention, were fueled in part by deep-seated frustrations over inequality and unaffordable housing. By setting a clear timeline for phasing out subdivided apartments by 2049, the Hong Kong government is signaling its commitment to tackling these long-standing problems head-on.
Yet, the new law has not been universally welcomed. Many low-income residents, who rely on the affordability and availability of subdivided flats, have voiced fears about their future. As Reuters reports, some worry that if their current homes fail to meet the new standards, they will face eviction or be forced to pay much higher rents elsewhere. Others are concerned that the supply of affordable housing will shrink even further, pushing the most vulnerable into even more precarious living situations. The government’s offer of transitional housing is seen by some as a stopgap rather than a permanent solution, and questions remain about how many people will qualify for such support.
From the landlords’ perspective, the new regulations represent a significant financial burden. Renovating thousands of apartments to meet the new standards will not come cheap, and some property owners may decide simply to withdraw their units from the rental market altogether. This could exacerbate the city’s chronic housing shortage in the short term, even as the government works to boost the supply of affordable homes over the long run.
Despite these challenges, the bill’s supporters argue that decisive action was needed. Hong Kong’s subdivided flats have long been a symbol of the city’s deep inequalities—a place where the wealthy enjoy lavish apartments while the poor are forced to live in cramped, often squalid conditions. By setting a minimum standard for space, safety, and sanitation, lawmakers hope to restore a measure of dignity to the city’s most vulnerable residents. As one legislator put it during the debate, "We cannot call ourselves a world-class city if we allow our people to live in cages."
International observers have noted the significance of the move, pointing out that Hong Kong’s housing crisis is among the most severe in the developed world. With property prices among the highest globally and new land in short supply, the city’s leaders face an uphill battle to ensure that all residents have access to safe, affordable housing. The new law, while not a panacea, represents a meaningful step toward addressing these deep-rooted problems.
As Hong Kong prepares to implement the new regulations and roll out the registration scheme next March, all eyes will be on how the city balances the needs of its most vulnerable citizens with the realities of its overheated property market. The coming months will test the government’s resolve—and its ability to deliver on the promise of a better, more equitable Hong Kong.
