Could Hong Kong’s student housing boom lure property giants off the sidelines?

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.