The transaction volume of first-hand residential buildings has been rebounding recently, and buyer sentiment has also improved. Although the residential market has shown a ray of hope, commercial and shop property market continue its downward adjustment. While investors are selling their premises at big discounts, higher education institutions are busy purchasing these valuable commercial and shop properties at a price cut. As a result, the price-cutting premises got the appropriate buyers, it will help to relieve the risk of deep depreciation of non-residential properties.
In recent years, the public consumption patterns have been changing. Local residents going north (Shenzhen) to consume and shopping has become a new normal. Under fierce competition, the local retail and catering industry has to confront endless waves of foreclosure. Office and commercial building’s transaction prices continue to hit new lows. If the decline trend is consistent, the mortgaged banks of related properties will be inevitable to suffer a sharp rise in bad debts. Therefore, it is crucial to have strong buyers purchasing those premises at the right moment, it could help to prevent the price of commercial properties falling too deep. On the other hand, it also enhances the banks to confront the financial crisis.
The first great deal was made by the Hong Kong Metropolitan University, which purchased the Cheung Kei Center in Hung Hom 
for HK$2.65 billion in 2024. In January of this year, the City University of Hong Kong spent HK$880 million to purchase the ground floor to the third floor of Ming Fai Centre in Tsim Sha Tsui East. In June, Hong Kong University of Science and Technology spent HK$350 million to purchase the current site of Metropol Restaurant on the fourth floor of United Centre in Admiralty.
The development of the education-economy has attracted a large number of mainland China students to study in Hong Kong. In order to meet the demand, colleges and universities have purchased more commercial buildings and shops to open teaching centers. In addition, the government has relaxed restrictions so that vacant commercial buildings can be converted into student dormitories to provide adequate supporting facilities for educational development. The influx of a large number of international students to Hong Kong has kept rental price stable, which has also indirectly supported property prices.
The recently introduced education economy has achieved results. If it is further deepened and implemented and diversified educational services in full spectrum. As a result, commercial and industrial properties have new boundaries for development.
