Foreign Property News | Posted by Shwe Zin Win
Privately owned international schools looking for space to expand into Hong Kong are being forced to open campuses in places like converted shopping malls because of a lack of land, according to property agents.
John Mortensen, senior director for education services, Greater China, at JLL, said school providers and investors in education still want to come to Hong Kong despite the political crisis that has rocked the city and damaged its reputation.
There is strong demand from local families able and willing to pay for their children to enjoy a high-quality education from a respected overseas school.
“But the problem is availability of spaces,” he said.
There are at least 11 international schools looking for space to set up new campuses in Hong Kong, according to market watchers. Mortensen said six providers have approached JLL.
“If I have any available spaces come up, I will have a pool of potential candidates to jump at the opportunity,” he said.
Ideally, most international schools want 30,000 to 40,000 square metres to accommodate 1,000 to 1,500 students, he said.
But some have had to lower their expectations, sacrificing features like large playing fields and classic architecture, after acknowledging the difficulty of finding land in Hong Kong.
“We are seeing an increase in the number of international schools taking up spaces in existing assets designed for commercial use and converting them into campuses,” he said.
British Wycombe Abbey opened its first campus at the former Tin Wan Shopping Centre at Tin Wan Street, Aberdeen, in September.
Invictus International School Hong Kong plans to open its second campus in a shopping mall at Tai Tam in the third quarter of 2020.
Mortensen said other schools have adopted an “urban model”, making space-saving adaptations like having their playing fields on the roof.
Lawrence Wan, senior director of advisory and transaction services for retail at CBRE, said:
“There are overseas private education institutions looking for the right opportunities to enter Hong Kong, attracted by a strong demand for quality education from local parents as they are able and willing to afford the costs to help their children gain international exposure.
“However, looking for the right space is a challenge for the schools, which have specific requirements such as large floor space, outdoor space and light-filled environment, particularly with Hong Kong’s high rental levels.”
Ref: Property Report
