Alumni Industry Series｜Sam Liu (MREHA 2016): Investment opportunities for student apartments

In recent years, the global expansion of higher education has fuelled a surge in demand for student accommodation. Sam Liu (MREHA 2016), who works in international real estate investment, notes that with university housing increasingly falling short, privately operated student apartments have emerged as a key solution — and a “rising star” in the property investment world.

In his role as at Centaline Investment Advisory, Sam helms private equity funds dedicated to student housing ventures across the United Kingdom, the United States and Hong Kong. These projects are typically structured as joint ventures, backed by a mix of sovereign wealth funds, pension schemes and high-net-worth individuals. “Many of these investors — whether seasoned professionals or not — are parents themselves, which gives them a strong appreciation of the value of education and the growing demand for quality student housing,” he adds.

Sam reflects that his own time living in student accommodation has given him a nuanced understanding of what students truly want from their living spaces.

Education: A market independent of global headwinds

He explains that the education sector is relatively insulated from global economic fluctuations. Regardless of market conditions, the appetite for higher education remains remarkably resilient. With many universities expanding their intake — including Hong Kong, which has relaxed its cap on non-local students — demand for student housing is on the rise.

Unlike the traditional residential market, student accommodation is typically let by the bed, with rents often paid upfront for six months or even a full year. This model provides a more predictable income stream, making it an increasingly attractive proposition for investors.

Sam and his team frequently travel abroad to conduct on-site visits of student housing developments. (Photo courtesy of the interviewee)

Three key criteria when sourcing student housing projects

With countless universities around the world, how do investors identify promising opportunities in student housing? Sam outlines three key considerations:

1) Universities with a rising intake

Pinpointing a university with sustained popularity is both an art and a science. Sam uses the US as an example, noting that many well-regarded public universities owe their popularity not to academic prestige, but to sporting excellence.

“We once visited a state university in the U.S. that isn’t ranked among the top 100 academically, but boasts an impressive track record in athletics. It’s hugely popular among local students, with a student population of 30,000 and growing admission quotas year on year — which made it a clear contender for our next investment in student housing.”

2) Proximity to campus

Student residences must be situated within easy reach of the campus. In the U.S., for instance, the ideal distance is within one mile (approximately 1.6 km) of the university grounds. In Hong Kong, locations near MTR stations or with direct public transport links to campus are prioritised.

3) A minimum supply of 100 beds

The ideal project should offer at least 100 beds. The building itself should not be too dated and must include communal areas that appeal to a younger demographic.

CUHK Business School’s master’s programme launched Sam’s career in real estate. (Photo courtesy of the interviewee)

Finding his footing in real estate through education

Originally trained in accounting, Sam was captivated by the curriculum of CUHK’s MSc in Management of Real Estate and Hospitality Assets [now has been renamed as MSc in Real Estate (MRE)] . Relocating to Hong Kong on his own to pursue the degree, he landed his current role and officially stepped into the real estate sector through the connections and opportunities the programme provided.

Sam credits his own time living in student accommodation for giving him valuable insights into what students truly want from their living spaces. Looking back on his years in the sector, his enthusiasm remains undimmed. “What excites me is that both the sector itself and the investment products are closely tied to young people — it’s a space that’s constantly evolving and full of life.”

For alumni considering a career in real estate, Sam emphasises the diversity of the sector. “There are so many facets to explore. I’d recommend keeping an eye on the investment strategies of major institutional players — they often point towards emerging segments with strong growth potential,” he says.

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