Hong Kong Banks Support Student Housing Property Boom Amid Rising Demand

The aging Regal Oriental Hotel in Hong Kong has attracted attention from top lenders as Centaline Investment plans to borrow HK$1 billion to convert the building into student apartments. Bank of China (Hong Kong) emerged as the lender of choice, beating out competitors including Industrial Bank’s Hong Kong branch. With a surge in mainland Chinese students and government backing, there is a growing trend of repurposing old buildings into student accommodations, offering stable rental income at 5% yields. The shift towards student housing projects has piqued the interest of banks from various regions, viewing it as both a real estate…