Hong Kong builds dorms, sees rent hikes on influx of Chinese students as admission quota doubles
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Student accommodation has emerged as one of the few remaining bright spots in Hong Kong’s property scene amid its prolonged downturn.
PHOTO: REUTERS
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HONG KONG – An influx of mostly students from China into Hong Kong is leading to higher rents and more investment in college housing.
Student accommodation has emerged as one of the few remaining bright spots in Hong Kong’s property scene amid its prolonged downturn, as universities allow more enrolments from non-residents.
From the 2024 academic year, which typically starts in September, the non-local student quota of publicly funded, post-secondary institutions will double to 40 per cent of admissions. University hostels are in short supply, which is pushing up demand for private rooms.
“Private student accommodation will be a new investment property asset,” said Mr Oscar Chan, head of capital markets at Jones Lang LaSalle (JLL) in Hong Kong. Rents for student housing have soared as much as 15 per cent in 2024 and JLL forecasts a shortage of 22,300 such bed spaces in three years.
Among recent moves by developers, Sun Hung Kai Properties’ Townplace West Kowloon, an apartment-hotel, is making exclusive offers to students for rooms starting from HK$15,000 (S$2,580) a month.
In June, Wang On Properties opened a private student hostel with 720 rooms, making it among the largest in Hong Kong. Private equity funds have also been converting hotels into student accommodation.
There is a spillover into the mass residential market, where additional leasing demand from students may cause rents to climb faster in the third quarter, after rising 1.6 per cent in 2024, according to Bloomberg Intelligence analyst Patrick Wong.
Potential extra demand for as many as 3,000 units may cut the private residential vacancy rate to 3.9 per cent from 4.1 per cent as at late 2023, he said. BLOOMBERG
