Northern Metropolis university towns put education property in focus

The project could create a major education real estate cluster, CBRE said.

Hong Kong’s planned university towns could generate new demand for student housing, education facilities, and innovation-linked commercial space, property consultants said, as the government puts the projects at the centre of its Northern Metropolis development.

“If successfully implemented, it could create one of Hong Kong's largest concentrations of education-related real estate,” Hannah Jeong, head of valuation and advisory services at CBRE Hong Kong, said.

“The integration of universities with key growth sectors such as artificial intelligence, life sciences, and advanced manufacturing should enhance the occupier base and strengthen long-term demand for specialised real estate,” she added.

The 2026 Policy Address sets out three university towns in San Tin, Hung Shui Kiu, and Ta Kwu Ling, with campus areas covering about 300 hectares. The wider districts will span more than 1,000 hectares.

San Tin will focus on sectors including medicine, life and health technology, artificial intelligence, robotics and microelectronics, whilst Hung Shui Kiu will centre on applied post-secondary education and smart manufacturing.

The clearer development timetable could give investors greater certainty in assessing student accommodation projects, said Cathie Chung, senior director of research at JLL Hong Kong.

“In addition, the Education Bureau will support the Hong Kong Direct Subsidy Scheme Schools Council in formulating the Code of Practice for Operating Student Hostels,” Chung added.

Kathy Lee, head of research and retail consultancy at Colliers Hong Kong, said the government’s approach moves the university town concept beyond campus construction by linking education, research, industry, and residential development.

“This marks an important step in translating industry-academia-research collaboration from a policy concept into spatial and functional planning,” Lee added.

Colliers also sees potential for education property to attract institutional capital.

Thomas Chak, head of capital markets and investment services at Colliers Hong Kong, said education assets have emerged as a high-yield alternative asset class with growing appeal to institutional investors.

“Education assets in Hong Kong are no longer merely ancillary facilities for tertiary institutions,” Chak said. 

The Five-Year Plan provides for government support including land premium exemptions and loans. Post-secondary institutions may also use their reserves, issue bonds and bring in market capital to finance university town development.

The investment case, however, will depend partly on the development of the wider Northern Metropolis.

CBRE said transport connections, accommodation, and the ability to attract international universities, research institutions and corporate partners would be important to establishing the university towns at scale.

JLL pointed out more flexible land policies could help accelerate Northern Metropolis projects, but attracting businesses, talent and educational institutions would be necessary to create sustained demand.

“At this stage, land should serve as an enabler of industry development rather than an end in itself,” said Alkan Au, Head of Value and Risk Advisory at JLL in Hong Kong.

Colliers expects the combination of universities, technology companies, and residential communities to support the wider development of the Northern Metropolis.