The increase in mainland students going to Hong Kong has led to an increase in Hong Kong's rent and investment in student dormitories.
According to JLL, the rental of student dorms in Hong Kong has increased by as much as 15% in the past year. It is expected that the shortage of student beds will reach 0.0223 million in the next three years, and private student dormitories are expected to become new real estate asset investments.
There are reports that shk ppt's Townplace West Kowloon, an apartment-style hotel, is offering lodgings for students from HKD0.015 million per month. Wang on ppt opened one of the largest private student dormitories in Hong Kong last month, with 720 rooms, and private equity funds are also converting hotels into student dorms.
Industry analyst Patrick Wong expects that the additional leasing demand from students has caused a 1.6% increase in rent this year, and the growth rate in the third quarter may be even faster. He said that there could be up to 3000 units of potential additional demand, or it could reduce the vacancy rate of private residences from 4.1% at the end of 2023 to 3.9%.