Hong Kong’s largest landlords and developers could get their first formal route into the rising student accommodation market after the government announced plans to tender land for a purpose-built student hostel this quarter, according to analysts.
Development Secretary Bernadette Linn Hon-ho announced on Thursday the inclusion of a 1,100 square metre (11,840 square foot) site for student accommodation as one of two land tenders in the October to December quarter.
The plot – at the junction of Yuen Shun Circuit and Yuen Hong Street in Siu Lek Yuen, Sha Tin – is expected to provide 600 hostel places.
“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,” said Kathy Lee, head of research and retail consultancy at property consultancy Colliers in Hong Kong.