Hong Kong’s government is planning to impose severe penalties on public housing tenants found guilty of illicitly renting out their homes, according to sources. This proposition is part of a broader effort to reduce the misappropriation of housing resources. The proposed law, if approved, could land violators in jail for up to a year.

The plan to revise the existing legislation is due to be presented to legislators next month. If all goes according to plan, the new law could be operational by the middle of 2026.

According to insider information, this new legislation will apply to every tenant, without exceptions. Additionally, individuals facilitating the illegal rental of these residences, including estate agents, will also come under the purview of this law.

One of the primary changes being considered is to the Housing Ordinance. As per the proposed amendment, partitioning a public flat for subletting or commercial use will be deemed as a significant misuse of public housing.

The suggested maximum penalty for such offences includes a hefty fine of HK$500,000 (US$64,230) and a one-year prison sentence. However, the proposed law, if enacted, will not apply retrospectively.

The introduction of these stringent measures is expected to discourage affluent tenants from exploiting public rental homes for profit.

Insiders have expressed hope that society prepares for the implications of this law, as it entails serious repercussions.

This information is crucial for anyone considering investment opportunities in Hong Kong’s real estate sector. It’s not the primary focus of this article, but understanding the changing legal landscape could be beneficial in making informed decisions.