Hong Kong faces shortfall of up to 59,500 beds for university students, creating opportunity for investors, hotel owners
- Shortfall of about student beds is expected expand by nearly 60 per cent by the 2027-2028 academic year, according to JLL
- Hong Kong will see two to three hotel conversions per year for the next two to five years, according to Colliers
An influx of non-local higher-education students is creating opportunities for property investors and hotel owners in Hong Kong as a gap between supply and demand for accommodation widens, according to industry insiders.
“Rents for private student accommodation have soared at an accelerated pace in the last 12 months”, rising 15 per cent over that span, said Oscar Chan, head of capital markets at JLL in Hong Kong.
With burgeoning student numbers, demand for private student accommodation is expected to increase by nearly 60 per cent by the 2027-2028 academic year, according to the consultancy.
The situation has led to several conversions of hotels into student spaces in the past two years, with more in the offing in 2024.
Non-local student enrolment in postsecondary institutions in Hong Kong is expected to surge 46 per cent to 92,000 by the 2027-2028 academic year, compared with 63,200 in 2022-2023, the property consultancy said.