Centaline (Commercial) and CBRE Appointed as Joint Sole Agents for the Sale of a Portfolio at 90 Hung To Road, Kwun Tong

As the Hong Kong Government continues to promote the city as an international post-secondary education hub, the number of non-local students has been rising steadily, driving significant growth in demand for student accommodation. Market participants generally expect a continued shortage of student housing beds in the coming years, making this asset class increasingly attractive to investors.
 
Capitalising on this market opportunity, the owner has launched for sale a portfolio of properties located at 90 Hung To Road, Kwun Tong, which has previously received approval under the Government's "Hostel in the City” Scheme for student hostel use. Centaline (Commercial) and CBRE have been appointed as Joint Sole Agents for the sale. The property is being offered with an indicative price of approximately HK$220 million.
 
Steve Fung, Senior Associate Sales Director of Capital Markets, Centaline Commerial said: “The properties for sale comprise part of the ground floor entrance area, the entire 1/F to 7/F, and the rooftop of 90 Hung To Road, Kwun Tong. The site area is approximately 5,000 sq ft, with a total gross floor area of approximately 32,900 sq ft (subject to verification). The corner building rises eight storeys and enjoys unobstructed views of the Tsui Ping River, benefiting from abundant natural light and open river views, offering both ecological and recreational advantages. The lobby is equipped with a staircase and two passenger lifts, providing comprehensive building facilities. Earlier this year, the property received approval for conversion into a student hostel providing 128 beds. It is now being offered for sale with vacant possession and in its existing condition at an indicative price of approximately HK$220 million. In recent years, Kwun Tong has witnessed a number of successful conversions of hotels and commercial buildings into student accommodation, reflecting the strong and sustained demand for student housing in East Kowloon. In addition to its solid conversion potential, the property comes with approved student hostel plans, which can substantially shorten the development timeline for a new owner. This makes it a highly attractive opportunity for investors seeking exposure to the student accommodation sector."
 
Reeves Yan, Executive Director, Head of Capital Markets, CBRE Hong Kong said: “As the core commercial district of East Kowloon, Kwun Tong benefits from an excellent transportation network. The property is located near Kwun Tong MTR Station and the Eastern Harbour Crossing, offering convenient access to many of Hong Kong's major universities and educational institutions, making it an ideal location for student accommodation development. The surrounding area is home to large-scale shopping malls, dining outlets and retail amenities, providing a mature living environment that can cater to students' accommodation and daily lifestyle needs. The supply of whole-building properties with student accommodation development potential that have already completed the requisite planning and usage approvals remains extremely limited in the market. As this property has already obtained the relevant approvals for student hostel use, a purchaser can promptly commence conversion works, significantly shortening the development cycle and reducing planning and approval risks. As Hong Kong continues its development as an international education hub, demand for student accommodation is expected to remain on a long-term growth trajectory. Consequently, student housing has emerged as a highly sought-after alternative asset class among investors. Compared with traditional office and retail properties, student accommodation generally offers more stable occupancy demand and income streams. This has attracted growing interest from institutional investors, family offices and professional operators in recent years. Amid limited availability of prime traditional assets in core districts, investment capital is increasingly shifting towards emerging themes with long-term growth potential, and student accommodation has become one of the most closely watched segments within the alternative asset market. Supported by its prime location, approved student accommodation use, and the ongoing development momentum of East Kowloon, the property is expected to attract strong interest from local and overseas investment funds, family offices, education operators and developers alike."