Hong Kong dormitory operators expand as labour shortages drive housing need

A management company has opened a new dormitory in North Point to help alleviate accommodation pressures for foreign workers in Hong Kong.

The building, located in Winner Housen, will begin accepting residents this Thursday.

The 700-square-foot unit contains a living room, three bedrooms, two bathrooms, and a kitchen, and can accommodate up to 16 workers, with 4 to 6 bunk beds per bedroom.

In line with Labour Department regulations, the units are equipped with electronic door locks, CCTV surveillance, and fire safety equipment, and the management company provides regular cleaning and maintenance services. Calculated at market rates of around HK$30 per sq ft, the total rent exceeds HK$20,000 per month, meaning each worker pays an average of HK$1,300 monthly.

The company said it currently operates 120 units providing a total of around 1,500 beds across Hong Kong and plans to double its capacity next year to meet growing demand.

The government’s Enhanced Supplementary Labour Scheme had approved nearly 6,000 applications as of September.

A company providing foreign worker domitory said they typically receive 30 to 40 inquiries per month, though this has slowed from peak levels.

It noted that approval times for foreign worker applications can be inconsistent, and that an increasing number of operators entering the dormitory market has contributed to the decline in inquiries.

Hong Kong is facing labour shortages across multiple sectors, and the number of incoming foreign workers continues to rise, driving growing demand for accommodation. According to government data, around 50,000 foreign workers had arrived by May this year, and the figure is expected to reach 70,000 by the coming year.

However, as no licence is required to operate dormitories, some facilities are of poor quality, according to a business development director at a dormitory management company.