Hong Kong may need 70,000 more student beds as non-local demand surges: CBRE

Tertiary student numbers could rise by 150,000 by 2035.

Hong Kong could see an additional 150,000 tertiary students by 2035, creating demand for 15 million to 23 million square feet of academic space and more than 70,000 student accommodation beds, according to CBRE.

The property consultancy said in a report released on 7 September that the city could also gain 30,000 to 40,000 international school students over the same period, requiring about 40 to 50 new school campuses.

It said growing demand from non-local students, particularly those from Mainland China, is supporting Hong Kong’s positioning as an international education hub.

Students are attracted by the city’s universities, strategic location, multilingual environment, and post-graduation career and immigration pathways.

“Historically, education demand was closely linked to local demographics, but future growth will increasingly be driven by non-local students, talent migration and the city's position as an international education hub,” said Marcos Chan, Executive Director and Head of Research at CBRE Hong Kong.

Universities and educational institutions have expanded beyond traditional campuses in recent years, including through acquisitions and leasing of office buildings, retail podiums, and hotel properties.

CBRE expects adaptive reuse of existing assets to help meet future education-related space requirements.

The consultancy identified opportunities to reposition underutilised offices, hotels, and retail properties for educational uses, including student accommodation and satellite university campuses.

“Education-related real estate is evolving into an increasingly attractive investment theme,” said Frederick Lai, Senior Director of Capital Markets at CBRE Hong Kong.

Lai said the firm expects strong interest in asset repositioning opportunities, particularly conversions of hotels, office buildings, and other underutilised commercial properties, amidst the projected shortfall in student accommodation and demand for space from educational institutions.

CBRE said education-linked real estate could offer investors long lease terms, stable occupancy, and multiple exit strategies as demand for education-related space grows.

The consultancy said meeting future demand will require collaboration between the government, educational institutions, landlords, and investors.