Could Northern Metropolis draw educational leasing from Hong Kong’s Grade A office sector?

Analysts believe that Hong Kong's Grade A office leasing activity could be influenced by the education sector's demand for commercial space in the Northern Metropolis. According to Kelvin Lee, director at Midland Commercial, this region could potentially serve as a viable option for institutions looking to expand their teaching, research, and administrative facilities.

However, the decision to relocate general office functions to the Northern Metropolis will depend on several factors, including the availability of suitable premises, transport links, costs, and operational needs.

The Hong Kong government has set plans for the Northern Metropolis under the city's first five-year blueprint, which includes expanding three university towns and opening applications for interested institutions to submit proposals for a first university town by the end of 2025. With growing demand for commercial space in Hong Kong, education groups leased a total of approximately 49,050 square meters of commercial space between January 2025 and August 2025, including both retail and office properties, according to CBRE data.

They also acquired properties worth HK$845 million (US$107.72 million). Experts predict that the city's international schools and universities will require more real estate to accommodate an additional 200,000 non-local students by 2035, potentially necessitating 40 to 50 new school campuses and up to 1.11 million square meters of gross floor area for international schools and 1.39 million to 2.14 million square meters for tertiary-level universities.