Kathy Lee, Colliers Head of Research and Retail Consultancy

Education has been a central policy priority in Hong Kong since 2023, when the government announced the sector as a driver of talent development, innovation, and international competitiveness. The Chief Executive’s 2025 Policy Address, delivered on 17 September, reaffirms this trajectory with a raft of new measures to further expand non-local student intake, accelerate infrastructure delivery, and fast-track the Northern Metropolis as a long-term education corridor.

This analysis draws on Colliers’ new white paper, “Building Hong Kong into an International Education Hub,” which outlines the infrastructure gaps, policy considerations, and strategic initiatives needed to transform Hong Kong into a global education powerhouse.

What comes next will depend on how the market responds to the opportunities.

The relevant changes at a glance

• The ratio of non-local enrolment at funded post-secondary institutions was raised to 50%.
• A new trial scheme allows Direct Subsidy Scheme schools to admit more self-financing non-local students on student visas.
• The Hostels in the City Scheme, launched in July 2025, enables commercial buildings to be converted into student hostels without rezoning and allows them to retain their existing plot ratio. The Policy Address extended this scheme to redevelopment projects.
• The government will earmark new sites for purpose-built hostels and invite expressions of interest from the market.
• A new Task Force on Study in Hong Kong has been established to coordinate international outreach, backed by HKD40 million in funding for university recruitment campaigns.
• The Education Bureau will also promote summer study tours and develop applied science universities to deepen industry collaboration.

Racing for capacity

Last year, Hong Kong hosted 73,700 non-local post-secondary students. There were only 38,000 hostel beds. By 2028, demand is expected to reach 175,000. Student accommodation presents both a visible challenge and an opportunity.

With the expected influx of boarders to DSS schools, educational institutions will also need additional accommodation space and, in some instances, to expand their campuses. Hong Kong’s ageing Grade B and C office stock is under pressure, and retail podiums are underused. These assets could be repurposed for use as classrooms, labs, faculty offices, and student housing.

Hong Kong Metropolitan University has acquired Urbanwood Hung Hom Hotel and converted it into student accommodation. City University of Hong Kong transformed the retail podium at Inter-Continental Plaza into an academic space. These moves point to a broader opportunity: integrating education into the city’s existing facilities.

Weaving education into the city

Mixed-use education precincts are already working in Australia and the United Kingdom. They combine academic, residential, retail, and innovation space into a single ecosystem. Hong Kong has the density and demand. It now has policy momentum. The planning framework needs to catch up.

The new trial scheme allows DSS schools to admit non-local students on student visas. These students will be self-financing, and schools can apply to expand class sizes. This translates to more accommodation and study space.

The Education Bureau will promote summer study tours and develop applied science universities to foster collaboration with the industry.

Positioning Hung Shui Kiu as the first university town site

The Northern Metropolis University Town scheme comprises three designated sites. Of these, Hung Shui Kiu is the most advanced in terms of infrastructure planning and delivery. Its MTR station is currently under construction, and land parcels are being readied for release.

At present, only five hectares within Hung Shui Kiu are zoned for post-secondary use, while adjacent plots have been earmarked for logistics and industrial development. The area requires a catalyst to realise its potential as an academic precinct.

To that end, the Chief Executive will chair the newly established Northern Metropolis Development Committee, supported by dedicated working groups focused on planning, infrastructure and education. This elevated governance structure is already fostering early coordination between landowners, education providers, and planning authorities. Discussions are underway to expand Hung Shui Kiu’s education footprint.

Given that this area will be ahead of the other university town locations, it is well placed to serve as the first phase of the rollout. Hung Shui Kiu’s MTR station is scheduled to be completed in 2030. In contrast, the other sites are unlikely to be connected before 2034. Delivering academic and residential facilities in advance of that timeline will shape how soon Hong Kong can compete for international students.

The future takes shape

The Policy Address lays a vital foundation for advancing Hong Kong’s education landscape, with a clear opportunity to strengthen the framework that supports both students and institutions.

The city’s swift repurposing of hotels into dormitories and retail spaces into classrooms signals a shift; education is a policy priority, and it has just been given the engine to move forward. With momentum building and the market already responding, the race is now on to bring the vision to reality.

Download Colliers’ white paper “Building Hong Kong into an International Education Hub”.