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

Despite higher rental prices, Hong Kong's purpose-built student residences are increasingly attracting mainland Chinese university students, drawing them away from traditional private rental options. These professionally managed accommodations offer greater convenience, enhanced security, predictable costs, and improved living environments, which help offset the higher rents and sometimes longer commutes for students.

Qi Zhonghao, a master's student in robotics at the Chinese University of Hong Kong (CUHK), moved from a subdivided unit near the university to a student residence after finding limited availability of on-campus housing. He explained that while the subdivided unit rent was relatively low, at around HK$7,000 to HK$8,000 per month, the lack of a communal kitchen and prohibition of cooking forced him to rely on takeaway food or restaurants, increasing living costs over time.

Qi also noted that these units typically offered limited security and property management services, leading to slower responses to repair requests.

In contrast, Qi now resides at Brim Youth, a private student accommodation developed by China Resources Longdation. He praised the comprehensive facilities, including a gym, communal kitchen, and activity spaces, as well as the weekly cleaning service, which provides ample time for rest. The monthly rent for a single room starts at HK$9,600, which includes utilities like water, electricity, and internet charges, offering a clear and fixed housing expense.

The popularity of purpose-built student housing is driven by a growing demand for accommodation, with CBRE projecting a 150,000 increase in higher-education students in Hong Kong by 2035, requiring at least 70,000 additional student beds. Chinese investment firms, including China Resources Longdation, China Merchants Group, JD.com, and CICC Capital, have made significant acquisitions of hotels and commercial-residential buildings for student housing projects in recent years.

China Merchants Commercial (CMC) REIT recently completed a HK$528.5 million acquisition of The Quad in Hung Hom, transforming it into the CM+U student housing brand, which now offers 205 beds.

Students at CM+U, such as Brandy from Beijing, a master's student in Chinese history and culture, appreciate the value for money despite higher rents compared to private housing. Brandy noted that private residential estates often feel crowded due to high building density and may have aging facilities, while student residences provide stricter management standards, ensuring a consistent resident profile and a safer living environment.

Fan, another master's student at Hong Kong Polytechnic University, also resides at CM+U and highlighted the convenience of a fully furnished home with daily essentials provided, saving her the hassle of moving and settling in.