Centaline Investment’s Josephine Kong discussed the potential of PBSA with Bloomberg Businessweek
2025-07-30
Josephine Kong, Chief Investment Officer of Centaline Investment, was recently interviewed by Bloomberg Businessweek (Chinese edition) to discuss the opportunities and challenges in converting office buildings into purpose-built student accommodation (PBSA) in Hong Kong.
Amid rising demand for student housing and a high local office vacancy rate, PBSA has become a new focus for investors and property owners. Several industry experts, including Josephine from Centaline Investment, shared insights in the interview.
Josephine mentioned that Centaline Investment has long invested in overseas student housing markets, having completed projects in the US and UK. With Hong Kong property prices declining, the company officially announced its first local project in May, One Pace 117, in Tsim Sha Tsui. This project, converted from a hotel to student housing, provides 121 beds and is located near several universities. She added that the investment period is expected to be four to five years, with an internal rate of return (IRR) projected at 15% to 18%, making it an attractive proposition.
Josephine also expressed support to the government’s recently launched “the Hostels in the City Scheme” initiative. She believes the policy simplifies the planning approval process, reduces renovation time and administrative costs for owners, and meets market needs. However, she also cautioned that PBSA is still in its early stages in Hong Kong. The market is not yet mature, and the structural conditions of buildings vary greatly, meaning not all are suitable for direct conversion.
To help owners make informed decisions, Centaline Investment has also newly launched a student housing operations brand, CampusOne Communities. It provides end-to-end services, from feasibility study to student housing operation.
Centaline thanks Bloomberg Businessweek (Chinese edition) for the invitation and looks forward to further breakthroughs in Hong Kong’s student housing sector. For more information, readers are encouraged to consult the full report (in Chinese) in Bloomberg Businessweek (Chinese edition) or contact the Centaline Investment team for professional guidance on property conversions.