Singapore urged to provide more housing options for seniors

The population is ageing and retiree income is growing.

Singapore will need more housing products for senior citizens as the population ages and retiree income increases, Edmund Tie & Company (ET&Co) revealed.

According to a report, there were 270,000 Singaporeans aged 65 and above in 2005. In 2015, the number rose to 440,000.

Currently, there is 1 senior citizen in 8 Singaporeans, and ET&Co projects this could only grow to 1 in 4 in 2030.

As a consequence, medical facilities and nursing homes will face more pressure. Shortage of labour will also minimize economic growth.

ET&Co also revealed that there is also a growing demand for nursing homes with total supply of beds to increase to 17,000, in line with the development of broader services.

"Given that most Singaporeans own their homes, either private or public, there are ways to meet senior needs by allowing some form of care sharing or elderly corner that offers medical facilities. However, such initiatives are often frustrated by Not In My Backyard (NIMBY) sentiments," the report said.

However, the ageing population brings along its set of unique needs that can turn into opportunities for the private sector.

"An ageing but affluent Singapore population offers opportunities for the private sector, especially if they can look at ways to monetise the equity locked in their housing asset," the report said.

Options for the elderly

The Government offers the Lease Buyback Scheme to allow senior citizens to sell back part of the flat’s lease to HDB, and thereafter use the proceeds to support themselves.

The elderly can also downgrade to smaller flats or HDB studio apartments and benefit from the Silver Housing Bonus Scheme, under which the Government gives them a cash bonus of up to $20,000.

Separately, the Government introduced more living options for the seniors, the two-room Flexi Flats, if they seek to downsize and monetise their housing equity.

However, there are fewer options for private homeowners to extract housing equity, ET&Co said.

"The reverse mortgages offered by the private sector did not pan out," the firm added.

ET&Co suggested opportunities such as providing age-restricted communities where only senior citizens are allowed permanent residence and villages with homes of different prices but approximate to recreational areas.

However, these may not be ideal due to high land costs. If Singapore were to build communities vertically, only those in the middle-upper income bracket could afford t.

"Retiring individuals have to conduct their financial planning ahead so that they can maintain their quality of life when they retire," ET&Co said.

However, the need to employ helpers may arise. Additionally, the proportion of one-person households that are above 65 is likely to rise.

Such solo elderly households are more prevalent because of changing family structures, while others simply desire more personal space and independence.

ET&Co said one possible business opportunity is to have coliving spaces for the retiring singles.

"The concept of co-living evolved from dormitories, and it started when aspiring entrepreneurs and students stayed in the same mansion, sharing the facilities. Residents of these co-living spaces can tap into amenities such as free internet and maid service, while making new friends and creating new social experiences," the firm said.

In the meantime, ET&Co said the elderly must recognise the need to liquidate their property assets to finance their future living arrangements.