HK's first certified Basic Housing Unit is out

The city's first certified Basic Housing Unit is out - four months after the Basic Housing Unit Ordinance took effect.

With a one-year registration period and a 36-month grace period for renovation works, landlords have four years in total to comply with the regulations.

Located on Cheung Sha Wan Road, Hong Kong's first certified Basic Housing Unit received authorities' approval at the end of June after about three months of preparation work and renovation.

The flat -- originally over 500 square feet in size -- is divided up into three rental units, ranging from 100 to 180 square feet each.

These units now need to meet the new ordinance's minimum requirement of 8 square metres in size -- or about 80 square feet.

They also come with an individual bathroom with upgraded works including independent water and electricity meters as well as ventilation systems.

Factoring in material costs, fees for registered specialists such as surveyors, and professional certification fees, the conversion project has cost about 150,000 dollars, with an average cost per unit at about 50,000 dollars -- a similar rate to authorities's reference cost.

The Hong Kong Basic Housing Units Operators Association says the project demonstrates that compliance costs can remain manageable when renovations are properly planned.

HAYSON CHAN, Chairman, HK Basic Housing Units Operators Association: "Before for our flat, the renovation may be for the electricity requirement. It is not meeting the requirement. It should be a reasonable price since actually for our flat, we have been doing some renovation which is meeting the minimum requirement of the flat. All of the purpose is based on the safety."

And the monthly rental fees there will stay at around 6,000 to 9,000 dollars.

CHAN: "We do not increase the (rent) even we are making the registration in the government. Since we would like for the tenant to stay in the flat instead of just they move out and we don't have any rental income."

Asked what advice he would offer to other landlords who will be doing renovations, Chan says they should start the process early and seek professionals' opinions such as engineers.