Despite higher costs, Hong Kong’s student residences attract mainland Chinese renters

Despite higher rental costs, Hong Kong's purpose-built student residences are drawing mainland Chinese university students away from traditional private rentals. These professionally managed accommodations offer greater convenience, enhanced security, predictable expenses, and improved living environments, which students find more appealing despite the higher rents.

Qi Zhonghao, a master's student in robotics at CUHK, moved from a subdivided unit near the university to an off-campus student residence due to limited on-campus housing. He noted that while subdivided units are relatively inexpensive, they often lack communal kitchens and strict security, leading to higher living costs and slower repair services.

Qi now lives at Brim Youth, a private student accommodation developed by China Resources Longdation, which offers comprehensive facilities such as a gym, communal kitchen, and cleaning services, making it more convenient and cost-effective for him. The demand for student housing in Hong Kong is rising, with CBRE estimating a 150,000 increase in the number of higher-education students by 2035, requiring at least 70,000 additional student beds.

Chinese real estate giants like China Resources Longdation, China Merchants Group, JD.com, and CICC Capital have acquired hotels and commercial buildings to develop student housing projects. CMC REIT recently completed a HK$528.5 million acquisition of The Quad in Hung Hom, incorporating it into its CM+U student housing brand, which currently has 100% occupancy at an average monthly rent of HK$8,000 per bed space and HK$12,500 to HK$17,000 per single room.

Students prefer these accommodations for their better value, fully furnished rooms, and strict management standards, which ensure a consistent resident profile and enhance safety. However, traditional private student rentals along railway lines are facing competition and a decrease in demand as these purpose-built student residences gain popularity.