Chinese universities are increasingly using university housing expansion by purchasing residential properties and converting them into dormitories. This approach helps solve on-campus housing shortages caused by rising enrollment while also tackling unsold property inventory. The strategy benefits both higher education institutions and struggling real estate developers simultaneously.
Hubei University in Wuhan was one of the first to adopt this model. The university converted 352 purchased apartments into dormitories for students arriving this fall. These apartments are just across the street from the Yangluo Campus, a ten-minute walk from academic buildings. This proximity gives students convenient, safe, and accessible housing close to classes.
Xu Tao, director of the university’s real estate management department, said the purchase reduced costs significantly. The acquired units sold for more than 35 percent below their initial listing price. With a total investment of 198 million yuan, these apartments created 2,800 new student beds. University officials are planning additional acquisitions to expand housing capacity further. This demonstrates how university housing expansion combines cost efficiency with rapid capacity growth.
Other universities are adopting similar approaches due to growing student populations, especially postgraduate students. Wuhan University explored off-campus housing because on-campus accommodations cannot meet all students’ needs. Likewise, Peking University, Fudan University, and Nanjing University now limit housing for professional master’s students to the first study year.
Chen Wenjing, director of policy research at the China Index Academy, noted the current real estate market encourages universities to act. Slowing property sales and tight liquidity make developers more willing to sell entire buildings. Acquiring existing units proves quicker and often cheaper than building new dormitories from scratch.
Policymakers issued guidelines in 2024 supporting student dormitory construction. They explicitly encouraged universities to buy or lease nearby residential buildings to increase housing resources. Institutions such as Hefei University of Technology, Central South University, and China University of Mining and Technology plan to purchase commercial properties for student use.
Experts, including Li Yujia of the Guangdong Planning Institute, emphasized the model’s potential nationwide. Transforming vacant residential buildings into student communities alleviates housing shortages. It also provides a market-based tool for managing unsold real estate effectively. In this way, university housing expansion offers a practical and sustainable solution for student accommodation challenges.
