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HK: The shortage of student accommodation in Hong Kong could reach 100,000 units by 2028 as the number of non-local students has been increasing year on year, says Colliers Hong Kong.
Kathy Lee, head of research and retail consultancy at Colliers Hong Kong, said that the number of non-local students expected to continue rising, demand for university accommodations remains strong. Some universities have partnered with hotels to convert hotel rooms into student accommodation.
She said converting hotels into student accommodation involves relatively low renovation costs and can secure occupancy rates. Universities leasing a large number of rooms under bulk rental arrangements typically receive discounts, though hotels would have less bargaining power over future rent increases.
Recent figures show that 94,517 student visas were issued in 2025, a 102 per cent growth over three years. Non-local students accounted for around 30,000 enrolments in international schools in the 2025/26 academic year, up 11 per cent from the 2022/23 academic year.
A Colliers white paper said: “Education operators are emerging as premium occupiers, characterised by long lease tenures, low churn and counter-cyclical resilience. This trend is already evident in capital flows, with HK$11.1 billion in education-related commercial investments (including educational facilities and accommodations) recorded in the first five months of 2026, and HK$4 billion transacted in 2025, accounting for 11 per cent of total commercial investment volume in 2025. In terms of leasing transactions, International schools and tertiary education institutions inked several of Hong Kong’s largest leasing deals in recent years.”
Lee said: “Hong Kong is no longer only addressing student accommodation shortages — it is facing a growing deficit in teaching and academic space. This shift is transforming education into a core real estate asset class, where landlords can unlock stable, long-term income by repositioning underutilised commercial properties.”
The white paper also highlights key regulatory controls and commercial risks that investors and operators must navigate when converting commercial assets for educational use. These include planning and zoning compliance, land lease restrictions, and stringent building and fire safety requirements, all of which can materially affect project timelines and achievable capacity.
“We are seeing strong momentum from both investors and education operators seeking to capitalise on this structural shift. First movers who secure well-located assets and navigate regulatory complexities effectively will be best positioned to capture the long-term yield premium offered by education tenants,” said Thomas Chak, head of capital markets & investment services at Colliers Hong Kong.
Highlights:
- The shortage of student accommodation in Hong Kong could reach 100,000 units by 2028 according to Colliers Hong Kong
- Recent figures show that 94,517 student visas were issued in 2025, a 102 per cent growth over three years
- Non-local students accounted for around 30,000 enrolments in international schools in the 2025/26 academic year, up 11 per cent from the 2022/23 academic year
