Hong Kong Hostel Scheme: How to Apply Now
Hong Kong is taking bold steps to transform its urban landscape and support post-secondary students with an innovative new initiative that could change the way student housing is developed in the city. On July 21, 2025, the government launched the Hostels in the City Scheme, a strategic program designed to dramatically increase student accommodation options by converting commercial buildings into modern, student-friendly living spaces.
The scheme addresses a critical challenge in Hong Kong’s educational ecosystem: the shortage of affordable student housing. By creating a streamlined pathway for developers to repurpose existing commercial buildings, the government is making it easier than ever to create new hostel spaces that meet the needs of post-secondary students.
One of the most significant innovations of the scheme is its flexible approach to building conversion. Developers can now transform entire commercial buildings or opt for partial conversions, providing unprecedented flexibility in how properties can be reimagined. The Town Planning Board has expanded the definition of “Hotel” to include student hostels, which means most commercial zones already permit this type of development without additional complex planning procedures.
Crucially, the scheme offers substantial benefits for both developers and students. Property owners can retain the existing gross floor area of commercial buildings when converting them to hostels, and they’re even allowed to repurpose spaces like parking areas into student-friendly amenities such as gyms and study rooms. Most leases for non-industrial properties already permit hostel operations, eliminating the need for costly lease modifications in many cases.
Developers interested in participating must submit applications through the Education Bureau, following specific eligibility criteria. While the scheme is comprehensive, there are some important limitations. Industrial buildings and properties in industrial zones are not eligible, though there are exceptions for commercial buildings that were previously industrial and are now located in non-industrial zones.
The Development Projects Facilitation Office provides crucial support throughout the application process, offering a one-stop service to help developers navigate the requirements. This dedicated support ensures that interested parties have clear guidance and assistance in bringing new student housing projects to life.
For students and educational institutions, the implications are significant. The scheme directly supports Hong Kong’s ambition to remain a competitive international education hub by increasing the availability of accessible, affordable student accommodation. By encouraging private sector investment in hostel development, the government is creating more housing options without relying solely on public funding.
Prospective applicants can find comprehensive information about the scheme, including detailed application guidelines, on a dedicated government website. In the future, the Education Bureau will also publish a list of approved student hostels, providing transparency and helping students make informed housing choices.
The Hostels in the City Scheme represents more than just a housing initiative—it’s a forward-thinking approach to urban development that recognizes the critical role of student accommodation in supporting educational excellence. By removing bureaucratic barriers and providing clear incentives for developers, Hong Kong is demonstrating its commitment to creating a dynamic, student-friendly urban environment.
For developers, educational institutions, and students alike, this scheme opens up exciting new possibilities for reimagining urban spaces and creating high-quality student housing solutions that meet the evolving needs of Hong Kong’s educational landscape.
