Hong Kong’s Student Housing Boom: Investors Capitalize on Skyrocketing Rents and High Demand

The surge in Hong Kong's student accommodation sector has attracted investors who are buying up properties as rental rates skyrocket. Investors are transforming undervalued properties into student housing in Hong Kong, capitalizing on the high demand and opportunity for expansion.

Buyers are taking advantage of significant markdowns on Hong Kong properties and converting them into housing for students. This trend is driven by an increasing need for accommodation from students from mainland China, which is pushing rental prices in the city to unprecedented levels.

Andrew Chan, the chief investment officer, confirmed that Crystal Investment, owner of Y.X, the biggest provider of student housing in Hong Kong, has purchased two properties worth HK$343 million (US$44 million) within the previous four months.

Towards the end of April, the business took over Hotel Ease in Lai Chi Kok, previously owned by the relatives of the deceased "Shop King" Tang Shing-bor, for a sum of HK$220 million, as stated by Chan.

The 21-floor hotel, which underwent renovations in 2022, was projected to have a value of HK$410 million last June when it was listed for sale, as per JLL, the broker handling the transaction.

Last month, Crystal successfully purchased a repossessed residential tower in Hong Hum for a sum of HK$123 million. The 25-floor edifice, which was finished in 2020, was projected to have a value ranging from HK$400 million to HK$420 million during its initial auction in 2023, as per regional news sources.