The Headlines
Hong Kong’s housing crisis: Where’s the space?
Demand for higher education in Hong Kong is booming, but how will the housing crisis impact incoming and local students?
By Rohan Mehra
"Those unable to stay in university housing face rising costs and sometimes, sadly, discrimination from landlords."
Universities are known to bestow great benefits on society, and governments know this, actively encouraging strong and competitive higher education sectors. Even if there isn’t a shortage of local talent, education ministries and universities are still keen to attract skilled international students and researchers to elevate research output, ranking and prestige.
Ideally, there’s ample room for this influx of intellectual capital to enable seamless integration and allow the students to focus on their studies. If not, such inadequate provisions can negatively impact the students with knock on consequences for the local community. Scarce or costly accommodation can also betray tensions between what’s good for the individual, and the agendas of institutions or the private sector. Naturally somewhere feeling the woes of insufficient accommodation is the most expensive city in the world - Hong Kong.
Though housing issues in Hong Kong are covered widely, the matter of student accommodation receives less attention. When it is covered, the discussion is often investor-led with little or no voice given to those hit hardest - students. The Hong Kong government has said it aims to double its non-local students from mainland China and abroad. But commercial real estate agency JLL projects the increase in available accommodation cannot match this, so how might this affect students, their studies and their ambitions?
“Hong Kong represents Chinese culture while maintaining strong international ties. I came here for that and I wanted to be financially sustained without burdening my family. Hong Kong provided me with just that. My scholarship covers tuition fees and there’s a stipend from my faculty,” says Mukit, a computer science student at The Chinese University of Hong Kong (CUHK). “Coming from Bangladesh and Oman, living in Hong Kong feels expensive, but campus dorms are far more affordable than off-campus accommodation. A bonus of my scholarship is a guaranteed four year’s residence in dorms. But many I know only face high rents in the private market.”
Many students report that the disparity between subsidised student dorms and private accommodation comes as a shock. To add to this, the way space in subsidised dorms is allocated can feel competitive, given the presence of a points system which favours those who take part in various extra-curricular activities and take on special responsibilities. Faced with private rents, many students opt for part-time work, which can eat into their study time, but some may not even have that as an option.
“International students have restrictions on what work they can do and require the approval of their faculty. Requests to work part-time during term are often rejected," continues Mukit. “International students in private accommodation can lead constricted lifestyles leading to poor mental well-being which adversely affects their academic standing.”
Some of these sentiments are echoed by Mark from Thailand, a second year student at Hong Kong University (HKU) who chose Hong Kong for its academic reputation and wide use of English in teaching. “Compared to Thailand, accommodation is around four times as expensive, this also applies to general living costs. While student halls are affordable, they’re limited, so space isn’t guaranteed. I didn’t get readmitted for next year and have to live in a private shared apartment,” he says. “It’s actually pretty stressful, partly seeking the place, but also having to find part-time work that will cover this increased living cost. I wish that universities here were more upfront about the fact that admission to student dorms is not guaranteed like it is in Sweden for example. I also wish they would just build more halls.”
While the uncertainty of subsidised accommodation can affect local and non-local students alike, with most universities only guaranteeing space in student housing for part of students’ time there, some locals may have to rely on their family homes, a situation which can vary in its convenience and may not be so easy for some.
“I lived in campus dorms last year, and I will again next year, but even in that time I’ve noticed the price increase. Now I’m at home, which is spacious and quite near university, but campus living is more convenient and lets you get the most out of the university experience, so I rely on some scholarships to help with the costs,” says Hong Kong local Joanne, a second-year business student at CUHK. “As prices increase yearly, I think we need to slow the situation down, especially when students face family issues or live far from university and really need a dormitory. I think universities or the government could provide more scholarships for students in need.”
Joanne also says her university is building more halls. However, those are part of the aforementioned projections and will not cover the shortfall. Broadly, students, regardless of background, commented that student housing rents were not the main issue and were even generous depending on where you compare it to. The problem is competition for space. This mirrors the more general struggle Hong Kong faces. Building new buildings may sound like a magic fix, but Hong Kong has limited space and complex rules and markets which can’t be changed easily.
There are proposals to turn some hotels, facing reduced demand from holidaymakers in the post-pandemic world, into student housing, but that will take considerable time. If the number of non-local students really does double in the next five years or so as the government intends, those incoming will need to adopt different strategies if they’re unable to secure dorms for all or part of their studies.
Though daily commutes are rarely fun, Hong Kong is not a big place. Chinese citizens, including locals, may elect to live over the border in Shenzhen. “Most like to stay on campus for the cost and convenience, but many from the mainland attending universities such as CUHK are choosing to live in Shenzhen," says Terence Chong, executive director of the Lau Chor Tak Institute of Global Economics and Finance at CUHK. "It’s much cheaper and connected by public transport, though it’s not such a great option for those attending the more central universities.”
Professor Chong adds: “Since the border opened, most non-local students come from the mainland, but we’re seeing increasing demand from other Asian countries growing their middle-class including India, Vietnam, and the Philippines. Those unable to stay in university housing face rising costs and sometimes, sadly, discrimination from landlords.” Even if student housing capacity does exceed projections, one of the problems he notices is the lack of dedicated student housing offices. Essentially, there is little to demarcate student-friendly rentals from the general rental market.
When approached for comment, a spokesperson for Hong Kong’s Secretary for Education said: “Universities in Hong Kong are independent statutory bodies which enjoy autonomy in administering their internal affairs, including the management of student accommodation.” But this does not make clear to what extent universities can influence the private housing market.
One such office that recognises this need is The Centre of Development and Resources for Students (CEDARS) at HKU. “We provide a database of rental information from property owners to all members of HKU. Our housing team conduct site visits of off-campus housing to ensure suitability and safety,” says Laurence Tang of CEDARS. “CEDARS is responding to rising rental costs by building more hostels and opened one with 1,200 places last year. We’re expanding accommodation options to meet the evolving needs of our increasingly diverse student population.”
“It’s clear that demand for places in Hong Kong will only increase, with five world leading universities it’s easy to see why. Realistically, costs of living won’t reduce demand overall,” says Professor Chong. “But we have to admit there is a problem for good students from developing countries who cannot come here without support. Another concern is what happens to graduates, one of the fruits of investing in higher education. Many can’t afford to live in Hong Kong since salaries for graduate jobs have not kept up with increasing rental prices. Both these things will need addressing.”