Authorities in Hong Kong are facing growing pressure to increase the availability of private housing for non-local students amid a projected shortfall in student accommodation over the next decade. The government’s latest Long Term Housing Strategy progress report, released Monday, forecasts an annual demand for 2,310 flats for non-local students, representing a 45 percent increase from last year’s estimate.
The Housing Bureau based this projection on an expected average annual rise of about 7,100 student visas between the 2016-17 and 2025-26 academic years. Approximately 65 percent of these students are anticipated not to reside in university-provided halls or hostels, driving demand in the private rental sector. The projection coincides with the recognition of five of Hong Kong’s public universities in the top 100 of the Times Higher Education World University Rankings, reinforcing the city’s status as a key destination for tertiary education.
Lawmaker Scott Leung Mankwong, who is also a member of the Housing Authority, noted that the increasing number of non-local students would inevitably strain existing accommodation resources. “When universities cannot provide sufficient accommodation, demand will shift to the private market – the government must devise a careful plan,” Leung said during a radio interview. He highlighted that areas near universities—such as Western, Sha Tin, Tai Po, Yuen Long, and Tuen Mun—are already experiencing rental pressures, and transport hubs like Olympic Station are also popular with students.
Leung warned that as non-local students enter the rental market in traditional residential neighborhoods, competition with local residents for limited housing supply could drive rents higher, a trend he said is already emerging. He recommended that universities collaborate with property agents to identify affordable housing options in alternative locations with convenient transport links to reduce pressure on certain districts.
Current policy maintains a 70:30 ratio of public to private housing supply. Leung proposed increasing the private housing share in selected districts, such as Pak Shek Kok, where public housing supply is relatively low. He suggested piloting this approach in targeted communities to balance the needs of lower-income residents while meeting private market demand without causing sharp price increases.
Addressing the challenges faced by universities, Professor Joshua Mok Ka-ho, president of the Hang Seng University of Hong Kong, pointed to land scarcity as the principal obstacle to expanding both accommodation and teaching facilities. He emphasized that universities lack the resources to develop sufficient hostels independently and rely heavily on private sector involvement. Mok called for government policy relaxation to encourage developers to participate in creating a university town infrastructure, including student housing.
Mok noted that his institution was collaborating with a hotel operator and a developer to increase bed availability through a hotel in Sha Tin and a dedicated building in Ngau Tau Kok. Such initiatives, he said, are crucial in supporting non-local students’ transition to life in Hong Kong. “If we recruit students without adequate supporting infrastructure… that will undermine the student experience and ultimately do more harm than good,” he said.
To accommodate growing demand, Hong Kong’s Chief Executive John Lee Ka-chiu announced last year plans to raise the cap on non-local student admissions at public universities to 50 percent starting from the 2026-27 academic year. The government also intends to relax regulations on converting commercial buildings and hotels into student hostels as part of broader efforts to expand accommodation options for non-local students.