JLL: Investment in the Asia-Pacific student housing market has surged threefold since 2022.

Jones Lang LaSalle (JLL) points out that the Asia-Pacific student housing market is ushering in a new landscape. As cross-border institutional investors gradually dominate the market, transaction volumes have surged threefold since 2022. This wave of cross-border investment reflects institutional investors' comprehensive reassessment of the market's investment value; at the same time, strong structural demand and persistent supply shortages are reshaping the risk and return profile of Asia-Pacific student housing. In the evolution of the Asia-Pacific student housing landscape, Hong Kong is rapidly emerging as a key market in the region. Hong Kong's efforts to build a global education hub, coupled with the long-term undersupply of purpose-built student accommodation (PBSA), have driven substantial capital inflows into the market. Recent landmark transactions fully confirm this trend, such as Central China Investment's acquisition of the Regal Oriental Hotel in Kowloon City for HK$1.51 billion, with plans to convert it into student accommodation. Jones Lang LaSalle (JLL) Hong Kong Senior Director of Research Cynthia Chung said: "Hong Kong's determination to develop into a top-tier international education hub has made student accommodation an urgent challenge in Hong Kong's property market. It is estimated that by the 2029/30 academic year, the city's student bed shortfall will reach over 140,000. Amid such a severe supply-demand imbalance, capital is accelerating its flow into alternative investment solutions, with the trend of converting existing hotels into student accommodation being the most prominent. For investors, this market not only offers strong demand and stable returns, but also possesses a high degree of resilience, making it less susceptible to fluctuations in the macroeconomic property market cycleundoubtedly a highly attractive investment opportunity." Local strategies such as hotel conversions have become increasingly common in Hong Kong, and across the broader Asia-Pacific region, the student housing market is attracting substantial overseas capital inflows thanks to its defensive advantages. In 2025, cross-border capital accounted for approximately two-thirds of total Asia-Pacific student housing transaction volumes, with funds primarily flowing to Australia, the region's most mature and open market. In contrast, domestic capital accounted for 54% of transactions in the overall Asia-Pacific accommodation market in the same year. This data disparity highlights the strong appeal of assets such as student housing to global investors. Jones Lang LaSalle (JLL) data and analysis show that private equity funds dominated Asia-Pacific investment activity over the past two years, with the majority of capital flowing into the Australian market. However, the first half of 2026 saw a notable shift, with listed real estate investment trusts (REITs) emerging as the most active buyers in the market, reflecting growing confidence in the student housing market from traditional property capital. Jones Lang LaSalle (JLL) Asia-Pacific Senior Director of Accommodation Capital Markets Lauren Hetherington said: "Structural demand continues to reinforce student housing's position as the most attractive long-term investment market in Asia-Pacific. Since 2022, the buyer base has steadily diversified, with significantly increased participation from developers, listed and unlisted REITs, fund managers, and educational institutions, further consolidating our firm confidence in this market. Ultimately, the expanding investor base reflects that student housing has successfully entered the mainstream vision of institutional investors, completely shedding its past label as a niche, specialized investment option." Jones Lang LaSalle (JLL) believes that demographic shifts and long-term policy evolution are reshaping global student mobility trends, which will further solidify the investment rationale for the Asia-Pacific student housing market. It is estimated that by 2030, the number of globally mobile international students will reach 9 million, and this surge in demand is colliding head-on with the market's structural supply shortage. Unlike cyclical inventory shortages, Asia-Pacific's student housing gap is a deep-seated structural issue. This long-term supply-demand imbalance supports rental growth, making it impervious to macroeconomic market fluctuations and providing investors with downside risk protection. Despite the strong overall momentum in Asia-Pacific, Jones Lang LaSalle (JLL) analysis points out that the maturity of student housing markets varies across the region, and investors must adopt tailored strategies. For the foreseeable future, Australia is expected to remain the gateway market for global capital investment in student housing. Other markets in the region also harbor opportunities for scaled expansion and first-mover advantages; however, investors need to develop differentiated strategies to flexibly address differences in market maturity, regulatory frameworks, and operational complexity across locations.