Mainland school operator leases Kowloon tower as talent influx drives city’s education boom

A Hong Kong-listed educational group has successfully leased the entire Tower B at the China Life Centre in Hung Hom, Kowloon, for HK$320 million, marking the largest commercial property leasing deal of the quarter. The tenant, which operates top-tier non-tertiary schools in mainland China and is listed on the Hong Kong stock exchange, is currently planning to transform the space into a purpose-built education complex spanning approximately 36,400 square feet, according to Frederick Lai, senior director for capital markets at CBRE.

The deal comes as the education sector in Hong Kong capitalizes on an influx of immigrant and expatriate families, leading to a shortage of available school spots. In the past five years, non-tertiary education groups and international private schools have invested HK$1 billion in real estate, with the sector leasing 280,000 sq ft of space in the past year.

As of the third week of August, education investments amounted to HK$10.7 billion, comprising 37% of total investments this year. The surge in investments is attributed to the arrival of 280,000 new residents via various talent schemes since 2022, bringing along 250,000 dependents, including children of school age. Lai emphasized that schools are selective in choosing leasing properties and invest heavily in finding the perfect premises for their long-term needs.