H
ong Kong's property market is in dire need of a positive narrative. Since 2018, the city has been plagued by one crisis after another, preventing a recovery and casting doubt over its status as a financial hub. The numbers paint a bleak picture: office rents have plummeted 40% since their peak in mid-2019, while vacancy rates have soared to a record high of 17.5%, according to CBRE data. This year is expected to see further declines in rents and capital values.

    The residential market is also struggling, with the Centaline City Leading Index showing a 28.5% drop since August 2021 to its lowest level since 2016. Despite government efforts to boost demand, transaction volumes fell 19.2% in the first quarter, and JLL forecasts a 5% decline in home values this year.

    However, some property advisers are now touting student accommodation as a rare bright spot in Hong Kong's real estate industry. With strong fundamentals and a promising investment case, this niche market is attracting attention from multiple big agents. As countries like the US take a harder line on international students, Hong Kong is welcoming non-local students – particularly those from mainland China – with open arms, aiming to become a hub for higher education in Asia.