Owl Standard BHU Certification Specialists · End-to-End Service WhatsApp Enquiry
Home
Services
All Services Pre-Assessment Process & Costs Grace Registration Building Orders Minor Works / A&A
Resources
8 Standards Knowledge Forms & Docs Cases About Contact
繁EN简
WhatsApp Enquiry
Knowledge Base · Eligibility

Which Units Are Exempt from BHU Registration?
The Complete Checklist

Published: 2026.10.06
TL;DR
  • Public housing (HOS flats pre-premium, public rental) and 11 other property types listed in Section 6 are completely outside the ordinance's scope.
  • Units that don't meet the "subdivided unit" definition — including illegal rooftop structures and flats with only one rental partition — are also exempt.
  • Industrial and commercial buildings are not covered; but using them for residential purposes may violate other laws.

Under the Basic Housing Units Ordinance (Cap. 658), a property unit does not need BHU registration if it either (a) belongs to an explicitly exempted property category under Section 6, or (b) does not meet the statutory definition of a "subdivided unit" under Section 4. This checklist covers both scenarios so landlords can quickly determine whether they need to act before the 28 February 2027 deadline.

Exemption Quick Reference
Situation Registration Required? Legal Basis
Public / social rental housing Not required s.6
HOS flat (pre-premium) Not required s.6
Transitional housing / Light Public Housing Not required s.6
Non-profit social-service rental Not required s.6
Hotel / guesthouse / care home Not required s.6
Rooftop illegal structure Outside definition s.4(4)
Only 1 rental partition Outside definition s.4(1)
Industrial / commercial building Outside definition s.4(1)
University student accommodation Not required s.6
Article summary: Cap. 658 exemptions fall into two categories: property types explicitly excluded by Section 6 (public housing, HOS flats, hotels, care homes, etc.), and structures that don't meet the Section 4 "subdivided unit" definition (rooftop illegal structures, single-partition units, industrial buildings). Exempt landlords still face other laws — see our warnings.

Category 1: Property Types Exempt Under Section 6

Under Section 6 and Schedule 4 Part 2 of the Basic Housing Units Ordinance (Cap. 658), the following property types are completely outside the ordinance's scope:

  1. Public rental housing — units rented out by the Hong Kong Housing Authority or Hong Kong Housing Society. These operate under separate social housing regulations.
  2. Subsidised sale flats (e.g. HOS, Green Form Subsidised Home Ownership flats) where the premium for removal of alienation restrictions has not yet been paid. Once premium is paid, the unit may fall under Cap. 658 if subsequently subdivided.
  3. Cubicle apartments — regulated under the Bedspace Apartments Ordinance (Cap. 447).
  4. Transitional housing — units under Government-supported transitional housing schemes.
  5. Light Public Housing — units under the Government's light public housing programme.
  6. Non-profit organisation rental — units rented out on a non-profit basis for the purpose of providing social services. Note: the unit must genuinely be managed for social service purposes to qualify for this exemption.
  7. Urban Renewal Authority (URA) acquired units — units acquired by the URA under redevelopment projects.
  8. Hotels and guesthouses — regulated under the Hotel Proprietors Ordinance (Cap. 349).
  9. Residential care homes for the elderly (RCHEs) — regulated under the Residential Care Homes (Elderly Persons) Ordinance (Cap. 459).
  10. Residential care homes for persons with disabilities — regulated under the Residential Care Homes (Persons with Disabilities) Ordinance (Cap. 613).
  11. Child care centres — regulated under the Child Care Services Ordinance (Cap. 243).
  12. Drug rehabilitation centres — regulated under the Drug Dependent Persons Treatment and Rehabilitation Centres (Licensing) Ordinance (Cap. 566).
  13. Student accommodation — units rented to students by registered schools, post-secondary institutions, or school sponsoring bodies.

⚠ Public housing exemption does not mean public housing tenants can sublet

Hong Kong Housing Authority tenancy agreements typically prohibit subletting or assigning tenancies. These are two separate regulatory frameworks — an exempt property type still faces its own rules.

Category 2: Units Outside the "Subdivided Unit" Definition

Even if a property is not in the Section 6 exempt list, some units fall outside the ordinance because they don't meet the statutory definition of "subdivided unit" in Section 4.

Under Section 4(1), a unit is only a "subdivided unit" if it was partitioned (or re-partitioned) in a way not shown in reference building plans, and after partitioning, the flat contains 2 or more compartments of which at least 2 are designed to be let separately as residential premises.

The following situations are therefore outside the definition:

1. Illegal Structures on Rooftops, Platforms, Gardens or Yards (Section 4(4))

Section 4(4) provides that a compartment formed by building works that violate the Buildings Ordinance (Cap. 123) on a rooftop, platform, garden or courtyard is not treated as a subdivided unit. These "rooftop structures" are outside the Cap. 658 framework entirely.

⚠ Rooftop structure = not a BHU registration issue, but still illegal

Illegal rooftop structures violate the Buildings Ordinance (Cap. 123). The Buildings Department can require demolition. "Not regulated by Cap. 658" does not mean "ignore it."

2. Flats with Only One Residential Rental Compartment

If a flat was partitioned but only one compartment is let separately as residential premises, it does not meet the two-compartment minimum and is not a "subdivided unit."

3. Partitions Shown in the Original Approved Plans

If the partitioned layout is already shown in the reference building plans (i.e., part of the original approved design), the flat is not "subdivided" in the Cap. 658 sense.

4. Industrial and Commercial Buildings

Cap. 658 only applies to residential buildings and the residential portions of composite-use buildings. Pure industrial or commercial premises are outside scope.

⚠ Industrial-to-residential use is not a Cap. 658 issue — it may be a worse one

Using industrial premises for residential purposes likely violates the land lease conditions or building regulations. Landlords face enforcement by the Lands Department (encumbrance) and Buildings Department, not the Housing Bureau.

The Two-Question Test

A simple two-question test to determine whether BHU registration applies:

1

Is the building a residential building (or the residential portion of a composite building)?

If No → Cap. 658 does not apply.

2

Was the flat divided, in a way not shown on the approved plans, into 2+ compartments each designed to be separately rented as residential?

If No → Outside the "subdivided unit" definition.
If Yes → Registration is required before 28 February 2027.

If in doubt, consult the Housing Bureau or a specified professional.

Frequently Asked Questions

Does a subsidised sale flat (HOS) that has paid the premium need to register?

Once the premium has been paid and restrictions removed, the flat is no longer in the exempted category. If the owner subsequently partitions it in a way not shown on the original plans, into 2+ separately rented residential compartments, it would fall within Cap. 658 and registration would be required. Confirm with the Housing Bureau if uncertain.

Rooftop structures are outside Cap. 658 — does that mean they can continue to be rented out?

Not safely. Section 4(4) excludes illegal rooftop compartments from the "subdivided unit" definition, meaning BHU certification is not needed. However, the structure itself violates the Buildings Ordinance (Cap. 123). The Buildings Department can order demolition. Landlords should not interpret "outside Cap. 658 scope" as permission to continue.

A flat has 3 compartments but only 1 is rented out — is registration needed?

Under Section 4(1), the "subdivided unit" definition requires at least 2 compartments to be "designed to be let separately as residential premises." If only 1 compartment is let as separate residential premises, the flat does not technically meet the definition. However, if this changes in the future, the landlord should re-assess.

Our housing NGO rents out subdivided flats to low-income families. Are we exempt?

The Section 6 exemption for non-profit organisations requires that the units are rented out "on a non-profit basis for the purpose of providing social services." This is a fact-specific assessment. If you believe your organisation qualifies, consult the Housing Bureau directly and maintain documentation to support the exemption claim.

Industrial lofts converted to residential use — is there a BHU concern?

No, because Cap. 658 applies to residential buildings. But the real concern is the Buildings Ordinance and land lease terms — using industrial premises for residential purposes is generally not permitted and can result in Buildings Department enforcement or Lands Department encumbrance. This is a more immediate legal risk than BHU compliance.

Further Reading
Eligibility

Which Subdivided Flats Cannot Be BHU Certified? Ineligibility Guide

Not all subdivided flats can obtain BHU certification. Learn which unit types are ineligible and why — before spending money on an assessment.

Landlord Guide

8 Years of Property Management: 5 Common Landlord Misconceptions About BHU Compliance

With 500+ subdivided units under management over 8 years, Owl Square Group shares the 5 most common misconceptions landlords hold about BHU compliance.

Landlord Guide

Grace Period vs Immediate Compliance: Which Should You Choose?

BHU landlords face two compliance approaches. This guide analyses the real costs, risks and conditions of each option to help you decide.

Not sure if your unit needs to register?

Owl Standard offers a preliminary exemption assessment to help landlords confirm whether their subdivided unit falls within Cap. 658. Get clarity before the 28 February 2027 registration deadline.

WhatsApp Free Consultation
WhatsApp