Non-local students drive HK student housing deficit to 120K

The shortfall of student beds is expected to rise 27.6 percent to 120,000 by 2028 in Hong Kong, driven by surging demand from non-local students and constrained land supply, said Colliers Hong Kong.

Thomas Chak, head of capital markets & investment services, said the transactions of hotels and residential properties in the private sector totaled HK$3 billion in the third quarter, as the market saw the long-term and sustainable student accommodation needs.

By converting Grade B and C offices into student housing, the rents are estimated to rise 20 to 30 percent compared to renovating offices, with an average rent of HK$60 to HK$80 per square foot, the services and investment management firm said.

Since the release of the “Hostels in the City Scheme” in July, Colliers said it has received over 10 consultations from investors and developers, including interest from foreign capital.  

The firm highlighted the strong need to expand access for international secondary students through investment in boarding infrastructure, citing growing interest among overseas students in studying in Hong Kong.

Colliers also witnessed a rising demand from mainland Chinese professionals admitted under the Top Talent Pass Scheme, who seek high-quality education for their children.

Responding to the suspension of Lantau Tomorrow Vision during the current administration, Kathy Lee, head of research & retail consultancy, said that it offered certainty to the private property sector, as the market can now anticipate no massive new land supply in the future, thereby supporting price stability. 

With over 1,600 hectares of land in the Northern Metropolis, it's sufficient to meet the supply demand for the market in the next 5 to 10 years, she added.

Additionally, Colliers also suggested advancing the University Town Vision with Hung Shui Kiu as the anchor site, by rezoning an additional over 40 hectares of land to support university town development.

HELEN ZHONG