As non-local student numbers continue to rise, Knight Frank projects a deepening supply deficit that is increasingly drawing institutional capital.
Hong Kong’s student housing gap set to widen to 137,000 beds by 2028
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Hong Kong’s student housing gap keeps widening fast.
Knight Frank says the city could be short 137,000 student beds by the 2028/29 academic year as non-local enrolment keeps rising and supply struggles to keep up.
Student housing gap: the numbers
- Non-local student numbers are projected to hit 166,000 by 2028/29.
- The current bed shortfall is estimated at 82,000 in 2025/26.
- Knight Frank sees that gap expanding to 137,000 beds by 2028/29.
- More than 15 hotel assets have already been converted or earmarked for student housing.
Why it matters
Hong Kong’s student housing gap is turning student accommodation into a real estate theme, not just a university issue. Knight Frank says the sector is drawing more institutional capital because the supply-demand imbalance is pushing investors to look at hotel-to-student-housing conversions and, increasingly, underused office buildings.
What’s driving demand
Knight Frank says non-local student enrolment has grown at an estimated 23 percent compound annual rate over the past five years, helped by universities expanding capacity and more flexible post-graduation employment policies.
[See more: Hong Kong property market: CBD office demand taking up supply faster than expected]
It also points to the government’s “Hostel in the City” scheme, launched in July 2025, which has already prompted more than 25 commercial properties to apply for conversion, potentially adding over 5,000 beds.
The investment angle on the student housing gap
The report says three- and four-star hotels have become preferred conversion targets because they are cheaper to buy, easier to reconfigure and less expensive to fit out. Knight Frank also notes that major players are already moving in, including private developers, institutional investors and university-linked deals,
What to watch next
The easiest assets have likely already been taken, so the next wave may come from office buildings with retail podiums and other flexible layouts. Knight Frank expects the market to become more institutionalised, even if it remains earlier-stage than student housing sectors in markets like the UK and Australia.
