Setting foot in Hong Kong’s thriving business hub

Sam Liu (MREHA 2016)

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 US 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 US, 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.

 

Violet Yu (MScFIN 2014)

Despite the ever-changing and increasingly complex global landscape, for those in the investment world, change is the only constant. Violet Yu (MScFIN 2014), director of China Institutional Sales at Fidelity International, thrives in the turbulent waves of the investment market. Drawing from her personal experience, she reveals what makes institutional sales distinct, shares the strategies for building client trust amidst fierce competition, and sheds light on the essence of the asset management industry.

After graduating with a degree in economics from a top-tier mainland university, Violet was eager to deepen her knowledge of finance. Naturally, she enrolled in the MSc in Finance programme at CUHK Business School. “The programme was incredibly practical, with numerous case study opportunities that laid a solid foundation for my future career,” she reflects. One of her standout memories was being invited to a recruitment event of a major bank in Hong Kong, which led to her first job after graduation, marking her entry into the financial sector. She later transitioned to the asset management company where she thrives today.

Institutional investors across regions: Diverse focus on investment markets

Currently overseeing the China and Hong Kong markets, Violet manages institutional investors, tailoring investment solutions based on each client’s needs. Her team develops investment strategies based on the needs of institutional clients, including equities, fixed income assets, multi-assets, private assets, and more.  When asked about the differences between institutional investors across regions, Violet notes that their focus varies. Some prioritise the Chinese market, while others seek opportunities in emerging markets. Meanwhile, many Chinese institutional clients take a global perspective, often positioning global assets as the core allocation.

Violet’s client base is broad, ranging from sovereign wealth funds, pension funds, insurance companies, and financial institutions to commercial enterprises. In addition to serving well-established large corporations, Violet sees great potential in China’s small and medium-sized enterprises (SMEs). “China’s SMEs are developing at a rapid pace. Take internet companies as an example — they grow from startups to listed companies in a remarkably short time. We start building relationships with them during their early stages, so once they have gained sufficient cash flow after going public, some of them turn to professional asset management firms like us to manage their investments.”

Violet enjoys interacting with people and finds great fulfilment in her role in institutional sales

Institutional investors stayed rational amid market volatility

“Unlike individual investors, in spite of the market swings these days, institutional clients remain relatively rational, as their focus is on asset allocation. Their investment strategy not only seeks returns, but also about balancing the internal needs of the institution, such as market and product diversification, risk management, and capital costs,” Violet explains. She also notes that, in the past two years, mainland Chinese institutions have increasingly prioritised Environmental, Social, and Governance (ESG) factors. Many now request the inclusion of ESG-related investment products in their portfolios, aiming not only for financial gains but also for positive global impact.

In her experience, when institutional clients choose an asset management firm, they consider more than just investment returns — they value the overall quality of service, especially the ability of the sales team to understand their specific needs. To stand out in a competitive market, Violet believes that value-added services are crucial. For instance, her firm regularly organises knowledge transfer workshops where the investment research team shares insights and analysis techniques with clients. This not only empowers clients with valuable knowledge but also encourages them to explore a wider range of investment options.

Encouraging young colleagues to stay the course: Opportunities will follow

Having worked for both Chinese and international financial institutions, Violet openly admits that she thoroughly enjoys her role in institutional sales at a fund company.

“The investment market is highly volatile, with new challenges every day. I thrive in that uncertainty. Plus, I genuinely enjoy interacting with people — whether they are clients or colleagues within my team,” she explains.

With over a decade of experience since graduation, Violet has seen many young colleagues leave the industry due to the pressures and ever-changing environment. However, she believes that persistence is key to unlocking opportunities. “In this industry, the accumulation of time has its value. Many clients I served when I was a junior are now possibly department heads. We have watched each other grow and have built solid trust over the years.  This lays the foundation for long-term cooperative relationships.”

Violet is optimistic about the growth of SMEs in mainland China, citing their rapid development and significant potential to become key target clients

 

Excerpted from the articles published in the CUHK Business School Alumni website on 13 May 2025 and 09 October 2024, this article is republished with permission from the School’s Alumni Affairs and Development Office.