Hong Kong Plans Tender for 600-Place Student Hostel Site

Hong Kong’s government has announced plans to tender a site for a purpose-built student hostel in the October to December quarter, a move analysts say could give the city’s largest landlords and developers their first formal route into the rising student accommodation market.

The plan comes as Hong Kong faces a forecast shortfall of 100,000 student beds, increasing attention on the availability of accommodation for students.

Site planned for 600 hostel places

Development Secretary Bernadette Linn Hon-ho announced on Thursday that a 1,100 square metre (11,840 square foot) site for student accommodation would be included among two land tenders planned for the October to December quarter.

The plot is at the junction of Yuen Shun Circuit and Yuen Hong Street in Siu Lek Yuen, Sha Tin.

It is expected to provide 600 hostel places.

The site will be tendered specifically for student accommodation, giving developers a clearly identified opportunity to consider a segment that has not previously had a formal route of this kind, according to analysts.

The proposed tender could also bring the sector into sharper focus for Hong Kong’s major developers, who have so far remained outside the student accommodation market.

Analysts see a possible catalyst

Kathy Lee, head of research and retail consultancy at property consultancy Colliers in Hong Kong, said the tender could help change that position.

“The tender of a dedicated PBSA [purpose-built student accommodation] site could be an important catalyst for Hong Kong’s major developers to take a closer look at the sector,” Lee said.

The planned 600 places would form part of the response to the much larger 100,000-bed shortfall forecast for Hong Kong.

That gap, alongside the government’s decision to offer a dedicated site, is putting the student accommodation market on the radar of the city’s largest landlords and developers.

Source: South China Morning Post