Hong Kong’s student housing boom sees investors snap up assets as rents soar
Investors are converting discounted properties into student accommodation in Hong Kong, eyeing high demand and potential for growth
Investors are snapping up Hong Kong properties at steep discounts and transforming them into student accommodation, as rising housing demand from mainland students drives rents in the city to an all-time high.
Crystal Investment, which owns Y.X, the largest student accommodation provider in Hong Kong, bought two properties for HK$343 million (US$44 million) in the last four months, according to Andrew Chan, the chief investment officer.
In late April, the company acquired Hotel Ease in Lai Chi Kok from the family of late “Shop King” Tang Shing-bor for HK$220 million, according to Chan.
The 21-storey hotel, which was refurbished in 2022, was estimated to be worth HK$410 million last June when it was put on the market, according to JLL, the agent for the sale.
Crystal also completed the transaction of a foreclosed residential building in Hong Hum last month for HK$123 million. The 25-storey property, completed in 2020, was estimated to be worth between HK$400 million and HK$420 million when it was put up for auction in early 2023, according to local media reports.
“We’re optimistic on the supply and demand issue regarding students for a long time,” Chan said. “The main reason we’re in this business is because we see that the government has put a lot of effort in building Hong Kong as an education hub.”
