Educational institutions pour more than US$1.4 billion into deals, helping steady the city’s commercial real estate sector
Hong Kong’s educational institutions are forecast to ramp up their investment and leasing in the commercial property segment, with leading universities and international schools among those paying top dollar to acquire or lease office and retail spaces, according to a property consultancy.
In the first five months of the year, property acquisitions by educational institutions accounted for nearly 40 per cent of total investment in the commercial property sector, the consultancy said.
“Education-related investments have already reached HK$11.1 billion [US$1.4 billion] in the first five months of 2026 alone,” a property agent said.
“This reflects very strong momentum as institutions increasingly shift from leasing to ownership,” the agent 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 HK$15 billion.”
The investments had already surpassed the HK$5.6 billion and HK$4 billion such institutions deployed in the property sector in 2024 and 2025, respectively, the consultancy said.
Hong Kong’s commercial real estate sector has struggled as offices grapple with a supply glut amid slower demand, while retail properties face pressure from e-commerce and the surge in northbound travel for shopping and dining.
The pickup in education leasing and investment is partially propping up the sector.
Some of the notable purchases include the University of Hong Kong buying an en bloc office property, covering 389,000 sq ft, at 92-103A Connaught Road West in Sheung Wan for HK$3.93 billion in April, and City University of Hong Kong paying HK$1.96 billion for the Festival Walk Office Tower in Kowloon Tong, which has an area of 229,000 sq ft, in January. Neither disclosed the purpose of their purchase.
DSC International School also acquired low-floor spaces measuring 146,000 sq ft at 5-7 Tai Fung Avenue in Taikoo Shing for HK$400 million in May, securing its campus from the landlord.
Harrow International School Hong Kong bought a 52,122 sq ft retail property at 5 Lok Yi Street in Tuen Mun for HK$122 million in March. It did not disclose the purpose.
In leasing, Nord Anglia International School rented 73,800 sq ft of space on the third to sixth floors of Harbourfront Landmark in Hung Hom for a sixth-form centre.
“Transaction evidence shows education occupiers are taking up large floor plates, typically between 25,000 and over 90,000 sq ft per deal,” the agent said.
“Demand is driven by the need for contiguous space for classrooms and facilities, making them comparable to major corporate tenants in scale and requirements.”
The consultancy estimated that total leasing volume of education institutions by year-end would be broadly in line with 2025 levels, “given the high base”.
While education institutions were unlikely to replace banking, finance and insurance firms as dominant tenants in prime office spaces in the near term, they were expected to become an “increasingly important demand driver for landlords with high vacancies to reposition their tenant strategies over the next few years”, the agent said.
