Hong Kong schools fuel property recovery with purchases, leases

Property acquisitions by educational institutions accounted for nearly 40% of total investment in Hong Kong’s commercial property sector during the first five months of the year, property consultancy Colliers said, as reported by the South China Morning Post.

“Education-related investments have already reached HKD11.1 billion (US$1.4 billion) in the first five months of 2026 alone,” said Thomas Chak, head of capital markets and investment services at Colliers.

“This reflects very strong momentum as institutions increasingly shift from leasing to ownership,” Chak said. “The current pace suggests 2026 could be one of the most active years on record for education-driven real estate investment, with transaction volume projected to exceed HKD15 billion.”

Nord Anglia International School, Hong Kong. Photo via Wikipedia/Wpcpey

The total has already exceeded the HKD5.6 billion and HKD4 billion invested by educational institutions in 2024 and 2025, respectively, according to Colliers.

Hong Kong’s commercial real estate market has been under pressure as the office sector contends with a supply glut amid weaker demand, while retail properties continue to struggle against the rise of e-commerce and growing cross-border travel by residents to mainland China for shopping and dining.

The increase in education-related leasing and investment has helped support the market. Student visas reached a record 94,517 in 2025, up from 46,821 in 2022. Non-local students also now account for nearly 30,000 enrolments in international schools, representing an 11% increase from 2022, according to Hong Kong Business.

Several major education-related leasing transactions have also been completed in recent years. Nord Anglia International School leased 73,800 square feet at Harbourfront Landmark in the first half of 2026 for a sixth-form center, while Stamford American School leased 95,000 square feet at Imperial Cullinan in the first half of 2025 for a new senior school campus.

Kathy Lee, head of research and retail consultancy at Colliers Hong Kong, said the city is no longer focused solely on addressing shortages of student accommodation but is increasingly facing a lack of teaching and academic space.

“This shift is transforming education into a core real estate asset class, where landlords can unlock stable, long-term income by repositioning underutilized commercial properties,” Lee said.

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