Core Viewpoint - The Hong Kong Legislative Council has officially passed the "Simple Housing Ordinance," marking the beginning of a structured approach to address the issue of substandard subdivided housing in the region [1][3]. Group 1: Substandard Housing Issue - Substandard housing, referred to as "㓥房," typically consists of small subdivided residential units with poor infrastructure and sanitation, which has been a long-standing problem in Hong Kong [2]. - Approximately 110,000 subdivided housing units exist in Hong Kong, affecting around 220,000 residents, primarily due to insufficient land and public housing supply [3]. Group 2: Regulatory Framework - The ordinance introduces a regulatory framework for subdivided housing units, requiring owners/operators to obtain "Simple Housing" certification before legally renting out these units [3]. - Minimum standards for these units include requirements for area, height, fire safety, structural safety, independent toilets, water supply, lighting, and ventilation [4]. Group 3: Impact on Rental Market - Concerns have been raised about potential rent increases if existing units fail to meet the new standards, with a cap on rent increases set at 10% based on the overall rental index during the relevant period [7]. - Approximately 70% of existing subdivided units can meet the minimum standards with minor renovations, while the remaining 30% may require significant modifications [6]. Group 4: Government Initiatives - The Hong Kong government aims to increase public housing supply significantly, with a target of 189,000 units over the next five years, representing an 80% increase from the current administration's start [12]. - The government plans to streamline land development processes and utilize technology to enhance efficiency and reduce construction costs [13]. Group 5: Transitional Measures - Following the ordinance's passage, a 12-month registration system will be implemented, allowing existing subdivided units to register and enjoy a 36-month grace period for necessary renovations and certification applications [14].