Student housing gap set to hit 147,200 beds by 2030

Office conversions picked up as demand outstrips pipeline across the city.

Hong Kong's student accommodation shortage is expected to grow to 147,200 beds by the 2029/30 academic year, up from 76,300 beds in 2025/26, according to JLL.

Demand is rising faster than new supply, even with about 16,300 beds currently in the pipeline, according to the property consultancy’s latest report Investing in Adaptation: PBSA as a Resilient Alternative Asset Class, 

As of end-April, Hong Kong's major purpose-built student accommodation (PBSA) projects provided around 6,900 beds.

Occupancy rates were between 98% and 100%, whilst rents have risen by up to 10% a year since 2022. JLL said the widening shortage is driving investor interest in converting Grade B and C office buildings into student housing.

"Grade B office vacancy rates have remained above 10% for over five consecutive years, while rents and capital values for Grade B and C office assets have declined by 15.2% and 50.5% respectively from their 2019 peaks," said Oscar Chan, head of capital markets at JLL in Hong Kong.

"PBSA conversion is emerging as an increasingly viable strategy to repurpose underutilised non-Grade A offices," he added.

JLL estimates office-to-student housing projects could achieve internal rates of return of 15% to 18% over a five-year holding period, compared with 13% to 16% for similar hotel conversion projects.

The report said policy support has also encouraged more conversion activity.

Since the launch of the Hostels in the City Scheme in July 2025, authorities have received 25 applications covering about 5,100 beds as of 4 February of this year.

Senior director of research at JLL Cathie Chung said investor demand is increasingly focused on larger student housing projects with 300 to 800 beds due to operational scale and expansion opportunities.

JLL said office buildings with high vacancy rates, single ownership structures, and lower refurbishment requirements are likely to be the most suitable candidates for conversion.