Centaline Dives into Hong Kong’s Student Housing Market Amid Rising Quotas and Supply Deficit

Centaline is the latest to enter the student accommodation market as Hong Kong's increased foreign student limit exacerbates the housing shortage

The rise in the number of international students in Hong Kong is exacerbating the housing shortage, leading to a surge in rental prices.

The organization is transforming the 63-room Popway Hotel located in Tsim Sha Tsui into a 150-bed student rental facility, according to the founder and chairman, Shih Wing-ching, who disclosed this in a phone conversation on Monday. This signifies the beginning of their mission to offer 3,000 beds in the coming three years, with Centaline aiming to duplicate its achievement in the UK and US markets.

"There are possibilities available since the government has increased the limit of foreign students studying here, causing a rise in rent," he stated. "The growth of student housing is only beginning to surge."

Centaline shelled out HK$180 million (equivalent to US$23.1 million) the previous month to acquire a hotel in the vicinity of Polytechnic University, as per official documents. The purchase price reflects a 53% reduction from the initial asking price when the property was listed for auction in September of the preceding year. Centaline anticipates allocating an additional HK$20 million towards refurbishments.

Centaline is entering a rapidly growing market segment. Major player Crystal Investment, Dash Living, and fund manager PGIM are some of the investors predicting a profitable outcome. Starting from this academic year, Hong Kong has increased the quota for international postsecondary students by two-fold, thereby exacerbating the existing shortage in the market.