Hong Kong considers easing construction rules to tackle student hostel shortage

South China Morning Post

20-06-2025

Hong Kong authorities are considering relaxing regulations for constructing university student hostels in commercial and non-residential areas to address a shortage of student accommodation.
This proposal has garnered support from private operators, who now face specific requirements when converting hotels into hostels.
The Development Bureau told the South China Morning Post it was considering scrapping or simplifying building procedures required for student hostels on commercial and non-residential sites.
'We are considering allowing student hostels in commercial and more non-residential zonings [to proceed] without the need for planning approval or, even if planning approval is required, only a simple planning procedure will be required,' the spokesman said.
The bureau said it aimed to encourage the conversion of hotels and other commercial buildings into student hostels on a self-financing and privately funded basis.
In his annual policy address last October, Chief Executive John Lee Ka-chiu said the government aimed to develop a 'studying in Hong Kong' brand to help turn the city into an international hub for post-secondary education.
But the initiative has faced hurdles resulting from a shortage of student accommodation.
Hong Kong's student housing crisis leaves non-locals desperate for flats
Figures from the Education Bureau showed that the city's eight publicly funded universities had about 103,400 students in the 2024-25 academic year.
The tally included about 76,900 Hongkongers and around 26,500 non-locals in full-time undergraduate and postgraduate research programmes, but excluded about 1,210 in taught postgraduate courses.
But the tertiary education institutions only offered about 40,600 dormitory places, according to government figures.
In an effort to find accommodation, some students were opting to cram into small flats with their peers to cut costs or even live across the border and commute to classes.
The bureau said a pilot scheme would be launched soon to encourage the market to convert more hotels and commercial buildings into student dormitories.
Former industrial buildings in non-industrial areas that had been wholesale converted into commercial buildings were intended to be part of the pilot scheme.
The government would also identify suitable sites for the private sector to build new hostels, it added.
According to property consultancy Knight Frank, the city had 10 private student hostels in Kowloon and on Hong Kong Island as of last year, with about 3,000 beds set aside for those studying at five of the city's universities.
Property services company Centaline Investment recently bought and turned a Tsim Sha Tsui hotel near Polytechnic University into a student hostel to capitalise on demand.
'The proposal from the government is a step in the right direction,' company CEO Kavis Ip Ming-wai said, adding that the move could speed up her industry's development.
Centaline Investment, a property services company, recently purchased a hotel in Tsim Sha Tsui and transformed it into a student hostel to meet the rising demand. Photo: SCMP
She said that some hotel owners were discussing the possibility of converting their venues into student dormitories, while some international industry stakeholders were watching the Hong Kong market and were interested in getting involved.
Ip said she believed that if authorities relaxed the rules, it could create momentum and international buzz for the student hostel industry.
'It is just like injecting a booster shot,' she said.
She also expressed hopes that authorities could allow non-residential flats to be turned into student hostels without needing hotel licences, which would make the process easier.
Another student hostel operator, Lionrock Property, which earlier renovated two residential buildings into dormitories offering about 100 spaces in total, also welcomed the move.
But the company encouraged authorities to create a policy road map that involved important stakeholders, including private operators, universities and the relevant government departments.
'The development of student hostels requires long-term planning rather than individual efforts by different parties,' founder and CEO Addie Chan said.
She also warned that most industrial buildings in the city were not suitable for conversion into dormitories, as most did not meet students' needs, such as sufficient sunlight.
Lawmaker Andrew Lam Siu-lo said even if the government relaxed the rules now, it would take three to four years before the city could address the shortage of student hostels.
The Legislative Council is expected to discuss the issue next week.