房地产 -再探学生生活 Student Living Revisited Maturing Investment Landscape and Market Execution- Novermber 2025

StudentLivingRevisited

MaturingInvestmentLandscapeandMarketExecution

November2025BuildingonthepreviousKnightFrankreportpublishedin.hk/research

February2025,“InvestinginStudentLiving”,thispaperfurther

explorestheimpactofnewgovernmentpoliciesonproperty

conversion,marketdemandandsupply,andprovidesstrategic

guidanceforinvestorsdivingintothestudenthousingsector.

StudentLivingRevisited:MaturingInvestmentLandscapeandMarketExecution2

Introduction

HongKonghasfirmlyestablisheditselfasaleading

internationaleducationhub,withfiveofitsuniversities

rankedamongAsia’stop20in2025—makingittheonly

cityintheworldtohostfiveinstitutionswithintheglobal

top100.Itsstrongacademicreputationhasledtoagrowingdemandforitseducationalprogramsamongstudents.Thisleadstoasurgeininvestmentactivityofeducation-relatedassets,withanotableincreaseintransactionvolumefor

studenthostelsandconversionprojectsin2025.Themarketisclearlyrespondingtotherobustdemandandlong-termpotentialofeducation-relatedassets.

CollaborativeEffortsbyUniversitiesandGovernment

Thegovernmentraisedthequotafornon-localstudentadmissionstoactivelyattractagreaternumberofyoung

scholarstothecity.Furthermore,theImmigration

ArrangementsforNon-localGraduates(IANG)allows

internationalstudentstoremaininHongKongafter

graduationtopursuejobopportunities,therebyenhancingthecity’sattractivenessasahubforglobaltalentandlong-termcareergrowth.

Demand-drivenMarket

Anadditionalintakeof18,400non-localstudentswas

allocatedforthe2024/25academicyearcomparedwith

thepreviousyear.Ofthis,UGC-fundedundergraduate

non-localenrollmentsincreasedby2,405,astheadmissioncaphasbeenrelaxedbytheGovernment.Self-financing

postgraduateprograms,thelargestsourceofdemand,

roseby11,774.Astheuniversitiescontinuallyexpandtheircapacitytoadmitmorestudents,thereremainsnostrictlimitonthedemandthatthecitycanaccommodate.

ConversionOpportunitiesforInvestors

InJuly2025,the“HostelsintheCityScheme”was

introducedtoencourageprivatesectorparticipationin

convertingexistingcommercialbuildingsintostudent

accommodation.Thisinitiative,coupledwiththestrong

growthinnon-HongKongstudents,hasspurredincreasedinterestfrominternationalandlocalinvestors,whoseethepotentialforsubstantialreturnsinthisemergingsector.

StudentLivingRevisited:MaturingInvestmentLandscapeandMarketExecution3

CurrentStateofStudentAccommodation

InHongKong,thereisawidevarietyofhousingchoicesavailableforstudents,cateringtodifferentrequirementsandneeds.Popularchoicesamongstudentsinclude:

On-CampusUniversityHallsofResidence

Purpose-BuiltStudent

Student

Accommodation

Options

Accommodation(PBSA)/StudentAccommodationthroughConversion

SharedApartments/PrivateRentals

Table1analysesdifferenttypesofstudentaccommodationinHongKong.On-CampusUniversityHallsofResidencearepopularamongstudentsduetotheironornearcampusconvenience.Italsohelpsstudentsbuildastrongsense

ofcommunity.On-campusaccommodationtypicallyhasgoodamenitiesandsecuritymeasuresinplace,providing

asafeandenrichinglivingenvironmentforstudents.

However,On-campusUniversityHallsofResidenceare

inshortsupplyandcannotmeetthehighdemand,hence“Purpose-BuiltStudentAccommodation(PBSA)/StudentAccommodationthroughConversion”hasbecomea

businessopportunity.

Table1:StudentHousingProductsintheMarket

On-CampusUniversityHallsofResidence

Purpose-BuiltStudent

Accommodation(PBSA)/Student

AccommodationthroughConversion

SharedApartments/PrivateRentals

Details

Typicallymanagedbythe

university&offerfinished

roomswithsharedfacilitiesincludingkitchensand

bathrooms.

Similartouniversity-managedhalls,thesearerunbyprivatecompanies.

Studentsmayrentasharedflatoranapartment.

Pros

Oftenlocatedinorclosetothecampus,makingitconvenientforstudentstoattendclassesandparticipateincampus

activities.

Offersimilaramenitiesas

On-CampusUniversityHallofResidenceandlocatedneartheuniversity.

Providesmoreindependence&canbemorecost-effectivewhensplittingrentand

utilities.

Cons

Shortageofbedspaces.

Slightlyexpensivethan

On-CampusUniversityHallsofResidence,asitoftens

offermodernamenities

likemulti-functionalrooms,gymsandsocialspaces.

Requirestudentsto

managetheirownbillsandmaintenance.

Source:KnightFrankResearch

StudentLivingRevisited:MaturingInvestmentLandscapeandMarketExecution4

HostelsintheCityScheme:PolicyOverview

TheDevelopmentBureau(DEVB)andEducationBureau(EDB)launchedtheHostelsintheCitySchemeinJuly2025toaddresstheacuteshortageofstudentaccommodation

inHongKong,asannouncedintheChiefExecutive’s2024PolicyAddress.TheSchemestreamlinesplanning,land,andbuildingplanapplicationprocedurestofacilitate

theconversionofexistingcommercialbuildingsintoprivatelyfundedstudenthostels.Thepolicyhasbeeneffectivesince17September2025.

However,despitetheintroductionofthisscheme,

issuessuchasthenecessityforstructuralrenovations,

adherencetoregulations,andamenitystandardsmay

resultinincreasedconversionexpensesanddelayed

execution.Nevertheless,convertinghotelsremainsthe

mosteffectivesolution,byretainingthehotellicense

andconductingminimalrefurbishmentswithinthe

existinginfrastructureallowsforquickerimplementationandacost-efficienttransformationintostudent

accommodation.

KeyFeatures

Streamlinedplanning

procedures

Details

ExpandedTownPlanningBoard’sdefinitionof“Hotel”usetoincludeeligiblestudenthostels.Mostcommercialsitesrequirenoplanningapprovaltoconvert.

BuildingregulationsfacilitationunderBuildingsOrdinance

PlotRatio(PR)relaxation—studenthostelstreatedasnon-domesticforPR/sitecoverage.Retentionofexemptedgrossfloorarea(GFA)suchasgymsandstudyrooms.

Nostandalonekitchensrequired;openspaceexemptionspossible.

Partialconversion

Partialconversionofabuildingintostudenthostelisallowedifspecifiedconditionsarefulfilled(determinedbytheEducationBureauandDevelopmentBureau).

Batchsales

Hostelroomsmustnotbesoldoffindividually.

Timeline

Conversionworksshouldbecompletedwithin18months.

Newhostelconstructionmustbecompletedwithin54months.

Advantages

Fostersefficientrepurposingof

underutilisedcommercialbuildings

Boostsavailabilityofaffordable,

high-qualitystudentaccommodation

AlignswithHongKong’sstrategicvisionasaglobaleducationhub

Challenges

Protractedpreparationworkand

conversiontimelinescomparedtohotelconversions

Potentiallyelevatedconversioncosts

Diminishedattractivenessto

institutionalinvestors

StudentLivingRevisited:MaturingInvestmentLandscapeandMarketExecution5

ResilientDemandforHigherEducationandPositiveImpactof2025Policy

Address

Fig1.Non-localStudentEnrolments

No.ofstudents

Self-financingPg(RPg+TPg)

UGC-fundedPg(RPg+TPg)

Self-financingUg&Sub-degree

UGC-fundedUg

post-secondaryeducationinstitutionsareexpandingcapacitytoaccommodatemorenon-localstudents,with

favourablepolicysupportandgrowinginterestsofinternationaltalents.

Thenumberofnon-localstudent

enrollmentsinthe2024/25academic

yearincreasedto92,000,representinga25%YoYgrowth.

UniversitiesfundedbytheUniversityGrantsCommittees(UGC)andother

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

2020/212021/222022/232023/242024/25-

Source:KnightFrankResearch

Fig2.Self-financingNon-localUndergraduates

■Self-financingNon-localUndergraduateso-YoYchange(RHS)

No.ofstudents

2025PolicyAddress

Tosupportthepost-secondaryeducationto

continuouslyexpandcapacityandenhancequality,

16%

60,00018%

16%

50,000

14%

startingfromthe2026/27academicyear,theGovernmentwillraisetheenrolmentceilingforself-financing

40,000

37,161

12%

10%

30,000

7%

4%

8%

20,000

6%

4%

10,000

2%

17,161

14,756

14,147

●

non-localstudentsfortaughtundergraduateprogrammesofeachfundedpost-secondaryinstitutionfromthelevelequivalentto40%oflocalstudentplacesto50%;andtheover-enrolmentceilingofself-financingplacesoffundedresearchpostgraduateprogrammeswillbeincreased

02022/232023/242024/25Maximum0%

ForUGC-fundedPost-secondaryInstitutionsSource:KnightFrankResearch

from100%to120%.

Althoughtheadmissionquotashavebeenincreasedforbothself-financingnon-localundergraduatesand

researchtaughtpostgraduates,theannualincrease

Fig3.Self-financingNon-localPostgraduates

Self-financingNon-localPostgraduatesYoYchange(RHS)

No.ofstudents

60,00027%56,25230%

inenrolmentforeachofthesecategoriesremains

considerablylessthanthatofself-financingnon-local

50,00044,47826%25%

postgraduates.Self-financingnon-localpostgraduateremainsthemaindemanddriverforthestudent

36,739

accommodationasthereisnostringentcapon

40,00021%20%

enrolmentunderthiscategory.Itsenrolment

15%

30,000

numberswereup26%YoYgrowthor11,774students

10%

20,000

10,000

5%

overthe2024/25academicyear.Incontrast,UGC-fundednon-localundergraduateenrolmentonlyincreased

02022/232023/242024/250%

Source:KnightFrankResearch

16%YoYor2,405students,despitetherelaxationofadmissionquotafrom20%to40%announcedinthe2023PolicyAddress.

Self-financingNon-localUndergraduatesActualEnrolmentandAdmissionCap

AdmissionCap%

2022/23

2023/24

2024/25

Startingfrom

2026/27

ActualEnrolment

19.2%

ActualEnrolment

19.9%

ActualEnrolment

23.2%

N/A

50%

(2025Policy

Address)

40%

(2023Policy

Address)

20%

20%

AdmissionquotacapiscalculatedbythelocalUGC-fundedspacesabout74,000annuallyForUGC-fundedPost-secondaryInstitutions

StudentLivingRevisited:MaturingInvestmentLandscapeandMarketExecution6

Supply&DemandGap

Asofthe2024/25academicyear,thetotalsupply

Fig4.CurrentSupplyandDemandGap

UGC-fundedInstitutionsUGC-fundedInstitutions(FutureSupply)

Self-financingInstitutionsMajorPrivately-fundedStudentHousings

ofstudenthostelbeds—comprisingbothexistingand

plannedbedsstandsatapproximately57,335.However,

No.ofbeds

evenundertheoptimisticassumptionthatallbedsare

100,000

Bed

Deficit

34,665

80,000

60,000

3,749

3,886

8,383

73,614

92,000

41,317

40,000

20,000

reservedexclusivelytonon-localstudents,thereremainsasignificantshortfallofabout34,665bedstomeetdemand.

Inreality,thebeddeficitisevenlarger,asmany

institutionsreserveaportionofhostelcapacityforlocalstudents.Thisstructuralimbalancebetweensupplyanddemandhighlightsacriticalandpersistentgapinstudentaccommodation.

Themagnitudeofthisdemand-supplymismatch

presentsacompellingopportunityforprivatesector

investmentandoperationalpartnerships.Withnon-localstudentnumbersexpectedtogrowandpublicsector

No.ofBeds0

Source:KnightFrankResearch

2023/24Non-localStudents

2024/25Non-localStudents

capacityexpansionislimited,thestudenthousingmarketinHongKongispoisedforstrategicdevelopment.

Fig5.NumberofBedsforStudents

6%

7%

15%

72%

UGC-fundedInstitutions

UGC-fundedInstitutions

(FutureSupply)

Self-financingInstitutions

MajorPrivately-fundedStudentHousings

UGC-fundedInstitutions(FutureSupplytil2028)

8,383

UGC-funded

Institutions(2025)

41,317

Major

Privately-fundedStudentHousings

3,749

Self-financingInstitutions

3,886

StudentLivingRevisited:MaturingInvestmentLandscapeandMarketExecution7

2024/2025HotelInvestmentOverview

InlinewiththeChiefExecutive’s2024PolicyAddress,

whichprioritisesthepromotionofthe“StudyinHongKong”brand,therehasbeenanoticeabletrendofrepurposing

underutilisedhotelsintostudentaccommodationstomeetrisingdemandforeducationalinfrastructure.Thisshift

haspositionedhotelassetsasacompellinginvestmentopportunity.

In2024,HungHomwitnessedthreesignificantpropertytransactions,highlightingitsincreasingattractiveness

owingtoitsclosenesstoprominentinstitutionssuchasHongKongPolytechnicUniversity,CityUniversityof

HongKong,HongKongBaptistUniversity,andHong

KongMetropolitanUniversity.Oneofthesetransactions

pertainedtotheHongKongMetropolitanUniversity,

indicatingrobustdemandfrombothinstitutionalinvestorsandend-users.

Year-to-date,sixdifferentresidentialbuildingsandhotelsweresoldtotallingmorethan1,000roomswithpotentialforconversion.ThetotalinvestmentconsiderationforpotentialstudentaccommodationsupplyhasreachedHK$3.3billionin2025,representinga2.5-foldincreasecomparedtoHK$1.3billionin2024.

Table2:MajorTransactionsin2024

District

HungHom

HungHom

HungHom

ProjectName

MU88(ex-UrbanwoodHotel)

OnePace117(ex-PopwayHotel)Y36(ex-IncredibleResidences)

No.of

Rooms

255

(433beds)

63

82beds

Purchaser

HongKong

MetropolitanUniversityCentalineInvestment

CrystalInvestment

TransactedPrice(HK$Million)

1,000

180

123

TransactedDate

Q1/2024

Q3/2024

Q3/2024

Table3:MajorTransactionsin2025

District

ProjectName

No.of

Rooms

Purchaser

TransactedPrice(HK$Million)

TransactedDate

KwunTong

HotelCoziHarbourView

598

NanyangCommercialBank

1,860

Q1/2025

MongKok

StayMK

101

MarkRiseInvestment

188

Q1/2025

Mid-Levels

BonhamResidenceHongKong

96

CentalineInvestment

335

Q3/2025

MongKok

HotelEaseMongKok

199

WangOnProperties&AngeloGordon

435

Q3/2025

TsimShaTsui

TheNate

71

TBC

270

Q3/2025

SaiYingPun

TheHenry

34

TBC

185

Q3/2025

AreaswithInvestmentPotential

•LeasingdemandaroundSaiWanisexceptionallystrongdueto

TheUniversityofHongKong

students,resultinginelevatedresidentialrentsandhigh

transactionvolumesinthearea.

•Privatestudenthousinginthe

Kowloonareaoffersconvenienttransportationandiswell-

positionedtocapturedemand

fromCityUniversityofHong

KongandTheHongKong

PolytechnicUniversitystudents.

•Privatestudenthousing

operatorsshouldtargetself-

financingpostgraduatestudentsfromChinesemainland,astheyrepresentthelargestsegmentofnon-localstudentsandareoftennotguaranteedwithon-campusaccommodation.

SuccessfulCaseofaHotel-StudentAccommodationConversion

FromPopwayHoteltoOnePace117

June2025

BeingtheflagshipprojectoftheCampusOnebrand,itwasrenovatedwith

acapitalexpenditure

2015

HighgradeBuilding

July2024

CentalineInvestment

acquiredPopwayHotelforHK$180million,averagingHK$2.86millionperkey.

(Commercial)hasbeenconvertedintoa3-starhotel,PopwayHotel.

ofHK$20millionand

rebrandedasOnePace117.Itoffers121studentbeds

acrossvariousroomtypes.

20152026

Sep2023

PopwayHotelwas

listedonthemarket

askingHK$380million.

May2025

CentalineInvestmentlaunchedCampusOneCommunities,

aplatformaimsatprovidingdedicatedstudenthousinginHongKong.

Aug2025

OnePace117reached98%

occupancywithintwomonths

ofopening.Itsestimatednet

operatingincome(NOI)yieldis5%,basedona70%profitmargin.

OCCUPANCY

CentalineGroup’sOnePace117,launchedunderits

CampusOneCommunitiesplatform,marksastrategicentryintoHongKong’sgrowingstudenthousingmarket,targetingtheinfluxofnon-localstudents.LocatedinTsimShaTsui,

thisflagshipprojecttransformedPopwayHotel,aformer

3-starhotelacquiredforHK$180millioninJuly2024,into

amodernstudentresidence.WithanadditionalHK$20

millioninvestedinrenovationscompletedbyJune2025,OnePace117nowoffers121bedsacrosssingle,twin,andtriple

roomconfigurations,cateringtopost-secondarystudents.

MonthlyrentsrangefromHK$6,355forbunk-bedtrio

roomstoHK$19,530fordeluxesingleroomswithseaviews.

BuildingonthesuccessofOnePace117,CentalineGroupfurtherexpandeditsstudenthousingportfoliobyacquiringBonhamResidenceHongKonginAugust2025,reinforcingitscommitmenttothisresilientandhigh-growthasset

class.Thiscontinuedinvestmentactivityreflectsgrowingconfidenceinthesectorandthestrategicvalueofhotel-to-studenthousingconversionsinHongKong’sevolvingrealestatelandscape.

AmenitiesConversionHighlights

Area

Layout

Coffeecorner

Purpose

Casualinteractions

CommunalLiving

&

SocialSpaces

Sharedkitchen

Fosteringcommunitydiningexperiences

Laundryfacilities

Residentconvenience

Dedicatedstudyrooms

Supportacademicpursuits

Multifunctionalspaces

Eventsandgatherings

RooftopCommunalArea

Multifunctionalspace

-providingapanoramicviewoftheharbour

Relaxation,socialisingandevents

StudentLivingRevisited:MaturingInvestmentLandscapeandMarketExecution8

StudentLivingRevisited:MaturingInvestmentLandscapeandMarketExecution9

Investors’Guide:BenefitsofInvestinginStudentAccommodation

Stablereturns

Studentaccommodationyieldsstable

returns,asmoststudentsenterinto

annualleases,guaranteeingaconsistentincomestreamforpropertyowners.

Additionally,theone-yearleasing

periodenableslandlordstoadjustrentalpricesmoreoften,facilitatingapromptreactiontoshiftsinthemarket.

Beyondthestrongliquidityprovidedbyadvancepayments,rentalpriceshaveexperiencedgrowthspurredbyhigh

demand.Thesingle-bedroomatY83sawarisefrom

HK$11,500inmonthlyrentin2023toHK$13,500in2025,a17%increaseovertwoyears.Similarly,three-bedroomunitsatSunnyHousesawa9%rise,fromHK$5,800per

bedin2024toHK$6,300in2025.Theriseinrentalsis

warrantedbytherobustdemandfromnon-localstudents,alongwithpartnershipsbetweeneducationalinstitutionsandtheprivatehostelsector.

Studentaccommodationprovideshighermarketyields

comparedtotraditionalofficeandresidentialsectors.Therentalyieldforstudentaccommodationisanticipated

tobe4.5%,withthepotentialtoexceed5%,basedonthe

actualconsiderationtransacted.Incontrast,GradeAofficespacesyieldapproximately3.7%,whileservicedapartmentstypicallyfallwithintherangeof3%to3.5%.Additionally,

smalltomid-sizedresidentialpropertiesgenerateyieldsbetween3.2%and3.6%.

Highoccupancy

StudentaccommodationinHongKong

presentsacompellinginvestment

opportunityduetoitsconsistentlyhigh

occupancyratesandstablerentalincome.Withstudentstypicallyrequiringhousing

forthefullacademicyear,operatorsbenefitfrompredictablecashflowsandlowvacancies.Forinstance,asreportedbytheowners,SunnyHouseachieveda99%

occupancyratewithinjustthreemonthsofopeningin2024,whileOnePace117reached98%occupancyduringitspre-leasingphaseinAugust2025.Theseexamplesunderscore

thestrongdemandandresilienceofthesector,reinforcingitsattractivenesstopropertyownersandinvestorsseekingdependablereturns.

Loweroperatingcosts

Studenthousingtypicallyincurslower

overallcostscomparedtohoteloperations.Unlikehotels,whichoftenprovideawiderangeofluxuryservicesandamenities,

studenthousingemphasisestheessential

needsofstudents.Thisincludesbasic

accommodation,communalspaceforstudyingand

socialising,andfacilitieslikelaundryandkitchens.By

focusingonthesefundamentalamenities,operatorscan

streamlinetheirservicesandreduceoverheadcosts.The

emphasisonself-serviceoptions—suchascommunal

kitchensandlaundryfacilities—reducestheneedfor

personnelinhousekeepingandmaintenance.Thisreductioninstaffingnotonlycutslabourcostssignificantlybutalso

allowstafftoconcentrateonenhancingtheresidents’experience.

StudentLivingRevisited:MaturingInvestmentLandscapeandMarketExecution10

InvestmentRecommendationsandExitStrategies

Studentaccommodationisrapidlyemergingasanew

investmentclassinHongKong,drivenbyrobustdemand

fundamentalsandstablecashflowsthatappealtolong-terminvestors.Aneffectiveexitstrategyforstudenthousing

investmentsinHongKongcaninvolvemultiplepathways.Strategicexitsincludelong-termownershipfordevelopersandoperators,stablecashflowinvestmentsforinstitutionalinvestors,directsalesorleasestouniversities,andpublic

marketaccessthroughREITs,enablingflexibleinvestmentreturnsalignedwithmarketgrowth.

Thissectoroffersafavourableopportunityforgrowth,demonstratingstrongholdingpotential.Moreestablishedmarkets,suchastheUnitedKingdomandAustralia,havedemonstratedthesuccessandscalabilityofthestudent

accommodationsector,whichattractstheinvestmentinterestsofinsurancecompanies,coreinvestor,and

sovereignwealthfunds.Furthermore,onenotableexampleofconversion,SunnyHouse,isbackedbyGIC,suggestingthatthesectorisevolvingfromamarketopportunityintoaviableassetclass.

Investorsconsideringstudentaccommodationshould

notekeyconsiderations.Althoughthegrowthofrental

incomemightbetemperedbyaffordabilitylimitations,thisfactorsimultaneouslyaidsinpreservingsteadydemand.

Furthermore,therecoveryofthehotelsectorcouldresultinadiminishedavailabilityofdiscountedhotelpropertiesforconversion,potentiallylimitingcost-effectiveinvestmentoptions.Forthoseinvestorspursuingstablereturns,

studentaccommodationremainsanappealingchoice—

particularlywhenundertakenwithcarefulplanningandanunderstandingofmarketdynamics.

ExitStrategies

Developer/Operator

Retentionofownershipthroughintegration

intoitsexistinginvestmentproperty

portfolio,whichfacilitateslong-termasset

controlandportfoliodiversification

InstitutionalInvestor

Propertiesofferingstablecashflows,are

well-suitedforinstitutionalinvestors,funds,

andprivateequityentitiesseekinga

5-7yearsinvestmenthorizon

REIT

EngagementwithRealEstateInvestment

Trusts(REITs)presentsopportunitiesfor

publicfundingandinternationalexpansion,

leveragingthemarket’sgrowthtrajectory

University/User

Directsalesorlong-termleasesto

educationalinstitutionsforlarge-scale,

amenity-richaccommodations,addressing

thecomprehensivehousingneedsof

expandingstudentcohorts

StudentLivingRevisited:MaturingInvestmentLandscapeandMarketExecution11

Conclusion

ThestudentaccommodationmarketinHongKongis

positionedforsubstantialgrowth,fueledbyincreasing

demandfromtheexpandinginternationalstudent

populationandlimitedexistingsupply.Investment

opportunitiesareripe,particularlythroughinnovativeassetconversionsandpartnerships,supportedbyfavourable

policies.

Strategicinvestmentinthisevolvingmarketoffersstable

returnsthroughdiverseexitoptions,includinglong-

termownership,institutionalinvestment,university

partnershipsandREITinvolvement.Investorswholeveragethesetrendsandadaptproactivelyarewell-positionedto

capitaliseonsustaineddemandandmarketexpansion.

MATURINGINVESTMENTLANDSCAPE

Investment

Partnerships

ExpandingDemandAssset