Finding the silver lining: Ageing population puts heat on senior housing plans

Developers could look at Western housing models for Singapore's silver-haired generation.

Singapore’s ageing population may provide developers opportunities for senior housing solutions, Colliers International said.

According to a report, Japan’s seniors will comprise a staggering 36.4% of the population by 2050; South Korea (35.3%), Hong Kong (33.9%), Singapore (33.6%) and Thailand (29%) representing the top five Asian economies with the highest percentages of seniors by 2050.

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Govinda Singh, Colliers International executive director of valuation and advisory services commented, “Singapore’s greying population presents many opportunities for both policymakers and private developers to further invest in senior housing solutions. Demand for such accommodation will be also spurred by the rising awareness of healthcare and wellness benefits, and retirees having the financial capacity to take advantage of senior living services and facilities.”

Colliers noted that Singapore said it is studying models for assisted living facilities, where senior residents can retain their independence by living at home but have access to nursing and personal care services. Assisted living offers more autonomy to the residents compared with the institutional model of nursing home care.

On May 12, 2018, Singapore Prime Minister Lee Hsien Loong officially opened the country’s first retirement community Kampung Admiralty in Woodlands – an integrated residential development with a range of healthcare, elder and childcare facilities, together with commercial space to serve residents of the area. The concept was conceived by the Housing and Development Board more than four years ago.

Also read: Why the ageing population could worsen wealth inequality in Singapore

The report suggested that Asian countries can look at Western models such as the Continuing Care Retirement Community (CCRC) provides greater convenience for seniors as this model provides the full continuum of care, from independent living to assisted living, in a single sprawling community offering recreational, social, medical and nursing facilities. “CCRCs in the US relies on an entrance fee plus a monthly service fee model,” it added.

Meanwhile, the Deferred Management Fee (DMF) retirement village model is common in the UK and most prevalent in Australia, where the senior purchases either a freehold or leasehold interest in a unit for under market rates and pays a relatively low monthly fee for the services provided.

David Faulkner, Colliers International Asia managing director of valuation and advisory services added, “Governments and developers must focus on broadening the range of senior housing options for the middle class – a fast-expanding segment throughout much of Asia. In markets where property prices are soaring, this segment may not have access to adequate subsidies or public facilities for elderly care, yet could be priced out of more expensive private offerings.”