Lower age, cheaper fees may lift CCA demand, analysts say

The minimum age for Community Care Apartments will be lowered to 55 from 65.

Researchers from Huttons and Realion (OrangeTee & ETC) Group said the lower eligibility age and reduced service package fees could improve take-up rates for Community Care Apartments (CCAs), where application demand has eased since the scheme was launched.

HDB announced that, from the October 2026 Build-To-Order (BTO) exercise, the minimum age to apply for a CCA will be lowered to 55 from 65.

Monthly Basic Service Package fees will also fall by 18% up to 75%, depending on residents' circumstances.

Huttons said the policy aligns the eligibility age for CCAs with that of 2-room Flexi flats, giving seniors more options when deciding whether to age in place, right-size, or move into housing with integrated care services.

It added that the lower service package costs would improve affordability and could lift the application rate for the upcoming Toa Payoh CCA project above one applicant per unit.

The consultancy noted that application rates have declined to 0.7 for Fernvale Plains, the latest CCA project launched, from 4.2 for the first CCA project, Harmony Village @ Bukit Batok.

Christine Sun, chief researcher and strategist at Realion (OrangeTee & ETC) Group said lowering the eligibility age gives seniors more time to relocate before mobility becomes a challenge.

Sun also said higher participation could improve economies of scale, helping to lower the cost of healthcare and support services provided in CCAs.

Based on its tracking of previous launches, Sun said application rates have steadily fallen from 4.2 at Harmony Village @ Bukit Batok to 1.6 at Queensway Canopy, 0.8 at Chai Chee Green, 0.9 at Merpati Alcove, and 0.7 at Fernvale Plains.

It added that the number of applicants has also declined to 152 for Fernvale Plains from 706 for the first project.

Looking ahead, Realion expects demand to recover for the Toa Payoh (Caldecott) CCA, citing the lower age requirement, improved affordability, and the project's location near Caldecott MRT station.

Sun also said a wider pool of CCA applicants could divert some demand away from 2-room Flexi flats, potentially improving ballot chances for other buyers, including singles.

Huttons added that if more seniors choose CCAs, additional larger resale flats could enter the market three to four years later, although these homes are likely to be older with shorter remaining leases, which could limit their buyer pool.