Hong Kong’s property market, usually synonymous with luxury apartments and sky-high prices, is getting a makeover. Investors aren’t just eyeing these prime locations for fancy condos—they’re turning them into student havens. With housing demand from mainland students hitting fever pitch, even hotels are being snapped up and transformed into student accommodations. Properties once considered the crown jewels of the city’s real estate scene are now part of a new trend, catering to the thousands of students flooding in. Crystal Investment, the largest provider of student accommodation in the city, is at the forefront, and they’re not messing around. HK$343 million in just four months? That’s serious business.
Take, for example, Crystal’s latest acquisition: Hotel Ease in Lai Chi Kok. Once the family treasure of the late “Shop King” Tang Shing-bor, this 21-storey beauty went for a cool HK$220 million. Not bad for a hotel that was still worth an estimated HK$410 million just last year, right? And that’s not all—Crystal also snagged a foreclosed residential building in Hung Hum for HK$123 million, despite its previous value dancing around HK$400 million. Bargains like these are becoming the norm as Hong Kong’s real estate market undergoes this shift. Why the sudden interest in student accommodations, you ask? Andrew Chan, Crystal’s chief investment officer, says it’s all about the future. The city is positioning itself as Asia’s education hub, and investors are racing to meet the rising student housing demand.
But it’s not just Crystal playing the game. Hong Kong’s entire property landscape is being reshaped by student demand. From the plush Popway Hotel in Tsim Sha Tsui, which went for nearly half its original asking price, to PGIM’s recent purchase of Ovolo Sheung Wan for student co-living, everyone is getting in on the action. Even Wang On Properties, a developer known for luxury digs, is diving into student rentals by converting the Pentahotel in Kowloon. Why? Because the numbers don’t lie—Hong Kong’s student population is skyrocketing, and housing is becoming a precious commodity. With the government doubling the quota for non-local students, the city is expecting a shortfall of nearly 120,000 beds by 2028. This isn’t just a niche market; it’s becoming a full-blown investment opportunity.
So, what’s the catch? Simple: rents. With demand driving up prices, student accommodation is no cheap affair. A small, single room in Y.X’s popular Hung Hom development, for instance, starts at HK$13,200 per month. Sure, that includes utilities, but it’s still a hefty price for students. Shared rooms, at about HK$8,100 a month, are slightly more affordable, but the cost is still steep. And as mainland students continue to flood in, pushing the rental index to near-record highs, Hong Kong’s property market is set to thrive—or crumble, depending on who you ask. Either way, it’s clear: the city’s student accommodation scene is where all eyes—and wallets—are right now.
(Source: Hong Kong Business | Migtiandi)
