Centaline Investment has confirmed its first student housing project in Hong Kong with the acquisition of the Popway Hotel in Tsim Sha Tsui for HKD 180 million. The company plans to transform the hotel into a student housing project offering approximately 150 beds. An additional HKD 20 million will be invested in renovations to create a modern, comfortable, and secure living environment for students. The facility will feature 24-hour security, high-speed internet, leisure spaces, study areas, and other amenities to meet the needs of student residents. Located just a 3-4 minute walk from the Polytechnic University, this project is positioned as a prime choice for student housing investments due to its ideal location.
Centaline Investment President, Kavis Ip, stated that the company has built a solid track record by investing in student housing in the United States and the United Kingdom. Recognizing the opportunity, they have decided to expand into Hong Kong and are optimistic about the market’s long-term prospects. In addition to its overseas investment experience, Centaline Investment benefits from its parent company, Centaline Group, which owns the largest real estate agency network in Hong Kong, including Centaline Property Agency and Ricacorp Property Agency, providing strong support for student housing rentals. Furthermore, Centaline’s access to extensive, real-time market data helps capture market trends and demands effectively.
Centaline Investment Managing Director, Josephine Kong, highlighted that the student housing market has consistently been a focus for global investors. With the increasing number of non-local students coming to Hong Kong, the demand for student housing continues to rise. This investment not only opens new opportunities for investors but also injects fresh momentum into the development of Hong Kong’s student housing market. Kong expressed that Centaline Investment is eager to leverage its experience in the student housing sector, alongside the support of the group’s research department and agency network, to collaborate with both local and overseas investors in entering the Hong Kong student housing market. Furthermore, Centaline is dedicated to establishing a long-term and sustainable investment market, creating value for all stakeholders involved.
Ip added that this investment marks their first step into the Hong Kong market, with plans to further increase their investments and development in the city. Their goal is to invest in 2,000 to 3,000 beds over the next 2-3 years, positioning Hong Kong as one of the largest student housing investment markets in Asia, and attracting more global funds and capital. They conservatively estimate that the market value of the student housing sector will exceed HKD 45.8 billion in the coming years. Centaline Investment believes that these projects will not only provide quality accommodations for students but also deliver stable returns for investors. With Hong Kong’s student population continuously growing, the demand for student housing will remain strong, offering even more opportunities for investors.