Hong Kong's demand for student accommodation is surging, driven by an influx of mainland Chinese students and government efforts to double the number of non-local students. With only 38,000 government-funded hostel beds available for nearly 74,000 non-local students, the demand for accommodation is expected to reach 175,000 beds by 2028, leaving a shortage of 120,000 beds. Investors are capitalizing on this trend by converting properties into student housing, with rent prices approaching record highs. The market is thriving, with more hotels and co-living operators joining in to meet the growing demand for student accommodation.
Hong Kong is seeing a rise in demand for student accommodation. This is mainly due to more mainland Chinese students coming for higher education. Investors are quickly buying properties and turning them into student housing to take advantage of this trend. With rents nearing record highs, the market for student accommodation is thriving.
Hong Kong is becoming a popular spot for international students, much like London. The government's move to double the number of non-local students is helping the student market grow. While almost 74,000 non-local students are studying in Hong Kong, there are only 38,000 government-funded hostel beds, according to a Colliers report. And, as per the report, the demand for student accommodation will grow to 175,000 beds by 2028. This means there could be a shortage of around 120,000 beds in the coming years.
Private investors are stepping in to address the shortage of student housing. By mid-2024, Hong Kong had nine privately owned student accommodation projects, offering 2,787 beds in total. Y.X. is a major provider, offering 971 beds across four locations. Rent prices vary by size and location. At Y83 in Hung Hom, there are 800 beds. Single rooms cost HKD 13,200 per month, while shared rooms start at HKD 8,100 per bed. These rooms are fully furnished, with prices covering water, electricity, and internet.
The rise in student numbers has driven Hong Kong rents close to the record levels seen five years ago. In July 2024, the rental index increased by 1.1% from the previous month, nearing the 2019 peak. Investors are now focusing on student housing, with hotels and co-living operators converting properties to meet the high demand. As more students come to Hong Kong, investors are looking for more student housing opportunities. More properties, including hotels, are being converted into student accommodation. And, this trend is expected to grow, with more hotel and co-living operators joining in.
Hong Kong's rising demand for student accommodation, driven by an influx of mainland Chinese students and the government's push to increase non-local student numbers, has created a thriving market for investors. With a significant shortfall in government-funded hostel beds and rents nearing record highs, private investors are rapidly converting properties into student housing to capitalise on this trend. The growth in student numbers is expected to continue, further fuelling the expansion of the student accommodation sector and attracting more investment opportunities.
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