As the Hong Kong SAR Government prepares to release its new Policy Address on Sept. 17, the push to establish Hong Kong as an international education hub has faced persistent challenges, including a severe shortage of student dormitories and rampant rental market issues. Despite efforts to attract non-local students, many struggle to find affordable housing, with some even falling victim to rental scams.
The government recently launched the "Hostels in the City Scheme," encouraging developers to convert hotels and commercial buildings into student dormitories. However, these facilities are not expected to be operational until 2026 at the earliest, leaving little immediate relief for the strained rental market.
Rising Rents and Fierce Competition
With Hong Kong universities expanding their intake of non-local students, the demand for rental housing has surged this summer. Data shows that residential rents have risen to near-historic highs, particularly in areas near universities. In Tai Po, for example, a three-bedroom unit at the Zenith development was leased for HK$29,000 per month to a mainland Chinese student, highlighting the intense competition.
Even for those who secure on-campus housing, the situation remains precarious. According to the Education Bureau, there are only about 44,000 dormitory spots for 192,000 undergraduate and postgraduate students in the 2024/25 academic year. Amy (pseudonym), a master's student at the Education University of Hong Kong, noted that the lottery rate for postgraduate dormitories is as low as 5%. For undergraduates, dormitory allocations are reassigned annually based on points earned through participation in residential activities—a system that has become highly competitive.
A PhD student at the University of Hong Kong (HKU) shared that while non-local students are prioritized for on-campus housing, research-based master's and PhD students are only guaranteed accommodation for their first year. After that, they must enter a lottery or participate in activities and interviews to secure a spot. The acceptance rate for HKU's May Hall dormitory is around 30%, while the Jockey Club Third Student Village requires students to accumulate points through activities and undergo interviews for renewal.
Many students expressed frustration that the residential activities, originally intended to help non-local students integrate into Hong Kong, have devolved into a competition for limited housing. Those unable to secure on-campus accommodation must turn to the expensive private rental market, leading some to call for subsidies from their universities.
Developers Hesitant, Tax Incentives Proposed
Although the "Hostels in the City Scheme" aims to address the shortage, some developers are reluctant to participate, preferring to retain their properties for tourist accommodations amid the government's push to revitalize tourism. Legislative Council member Lam Chun-sing suggested that the government offer tax incentives and subsidies to encourage developers to join the scheme. He also proposed that the Talent Services Office under the Labour and Welfare Bureau extend its services to non-local students, providing them with housing resources and support similar to those offered to participants of the "Top Talent Pass Scheme."
Additionally, Lam emphasized the need for long-term planning in the Northern Metropolis University Town, urging the government to reserve land for student dormitories and make advance arrangements.
Call for Universities to Take Greater Responsibility
Industry insiders suggested that universities should play a more active role in supporting non-local students. This includes leveraging student affairs offices to provide enhanced off-campus rental support services, such as maintaining a list of qualified real estate agents, offering free legal consultations, and organizing anti-fraud workshops. Such measures would help non-local students navigate Hong Kong's housing market and integrate more smoothly into the local community, allowing them to focus on their studies.
As Hong Kong continues to promote itself as a global education destination, addressing the accommodation shortage remains critical to ensuring a positive experience for all students.
(Reporter: Liu Yanling | English Editor: Liu Yu)
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