Colliers Lists 60% Stake in Wan Chai Property for Sale, Eyes Student Housing Conversion
AM730 · 2 SOURCESabout 1 hour ago7 MIN
Summary
Colliers has been appointed as the exclusive agent to sell approximately 60% ownership in 382 Lockhart Road, Wan Chai, a commercial building completed in 1995 that could potentially be transformed into student housing. The property encompasses floors 5 through 13, 15 through 23, and the 24th-floor rooftop, with a total gross floor area of approximately 47,349 square feet . The listing includes the building's naming rights and external advertising space, representing a significant investment opportunity in Hong Kong's evolving student accommodation sector . The property currently operates at approximately 95% occupancy, delivering stable rental returns while offering flexibility for future use conversion under the government's City Scholar Scheme .
Key Points
- The property at 382 Lockhart Road spans floors 5-13, 15-23, and the rooftop 24th floor, with a site area of approximately 3,642 square feet and total gross floor area of about 47,349 square feet
- Colliers estimates the 60% ownership stake has a market value of approximately HK$360 million, based on current market assessments
- The current owner originally acquired approximately 18 floors in 2021 for about HK$415 million, subsequently adding one more floor in 2023 for roughly HK$23.94 million
- Floors 5 through 24 have received approval to participate in the City Scholar Scheme (城中學舍計劃), enabling future conversion to student accommodation
- Market analysis indicates that despite the scheme currently offering about 10,800 beds, a shortfall exceeding 100,000 beds is projected for the upcoming academic year
- The government has raised enrollment caps for self-funded non-local students at subsidized institutions starting from the 2026/27 academic year, anticipated to sustain demand for student housing
- Cheng Wai-keung (鄭偉強), Director of Capital Markets and Investment Services at Colliers Hong Kong, notes the property provides both stable rental income and potential for student housing conversion
Why It Matters
The sale of this Wan Chai property reflects growing investor interest in Hong Kong's student accommodation market, driven by rising non-local student numbers and insufficient on-campus housing supply. With the government expanding enrollment quotas for self-funded non-local students at subsidized universities, the gap between student housing demand and supply is widening significantly. The property's approval for the City Scholar Scheme demonstrates how commercial buildings in prime urban locations could be repurposed to address the city's acute student housing shortage while offering investors diversified returns.
The sale of this Wan Chai property reflects growing investor interest in Hong Kong's student accommodation market, driven by rising non-local student numbers and insufficient on-campus housing supply. With the government expanding enrollment quotas for self-funded non-local students at subsidized universities, the gap between student housing demand and supply is widening significantly. The property's approval for the City Scholar Scheme demonstrates how commercial buildings in prime urban locations could be repurposed to address the city's acute student housing shortage while offering investors diversified returns.