The ageing population of Singapore offers developers opportunities to build private senior homes.
One in four Singaporeans will be 65 years or older by 2030 as lifespan gets longer. More elderly-friendly public infrastructure is likely to be built. As retiree household income increases, there is going to be a shortage of private housing for seniors in Singapore.
There is also a challenge for private home owners to cash out of their housing assets. An ageing but affluent Singapore population offers opportunities for private sectors to monetise the equity locked in their housing asset.
As there are channels currently available for elder residents of public housing to monetise their flats, there are few options open to private home buyers. Reverse mortgages offered by banks like OCBC, NTUC Income has not been well received.
Senior home owners would like to leave behind a legacy and thus they are unlikely to pursue the reverse mortgage option.
It is also unpalatable for private home owners in the middle to high income bracket to downsize or move into HDB flats to unlock their home’s equity.
Social stigma linked to senior housing which has elderly friendly features are also likely to deter the development of private senior housing projects.
An insufficient supply of nursing homes for the elderly also post another challenge for developers of private senior homes.
There is also demand for co-living spaces for retiring singles. Co-living spaces are more affordable as the cost of accommodation and services are shared.