[SINGAPORE] Assisted living facilities – which enable elderly folk to live semi-independently with elderly-friendly amenities and care services – are a tough business in land-scarce Singapore. But there is still room for more private operators to pilot new models and innovate.
Healthcare and real estate company Perennial Holdings is investing in this space. In 2023, it secured a S$72 million tender to build an assisted-living development in Parry Avenue, with residents expected to move in by the first quarter of 2026. The project will comprise 200 assisted-living apartments, a nursing home with 100 beds, a wellness clubhouse and a geriatric care centre.
It is “very, very difficult to make money” with steep land and labour costs, Perennial chief executive Pua Seck Guan conceded in a recent interview with The Business Times. But the company decided that it would still be worth showcasing such a concept in its home market. Perennial has already built numerous assisted living facilities in China, including a 43,000 square-metre Alzheimer’s care village in Xi’an, and wants to apply its learnings here.
The need for assisted living facilities in Singapore is clear, with more elderly living longer and staying mobile. Many seniors do not have the high care needs for which traditional nursing homes are meant, Dr Belinda Wee, director of the Assisted Living Facilities Association of Singapore, previously told BT. She co-founded assisted living provider St Bernadette Lifestyle Village in 2015, which runs nine “villages” for elderly with over 100 beds in Singapore.
The assisted-living industry has certainly come a long way from a decade ago, when the concept was still untested. In 2014, The Hillford, a 60-year-leasehold condominium marketed as a retirement resort, ironically attracted many younger buyers as there were no age restrictions.
Today, assisted-living developments are more intentionally planned, especially with the government stepping in with Community Care Apartments (CCA) at locations such as Bukit Batok and Queenstown. These flats come with leases ranging from 15 to 35 years, and a service package with 24-hour emergency aid, communal activities and basic health checks.
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But even as the government becomes a key supplier of assisted living units, there is still a need for a mix of both public and private options. The private sector can cater to demand from more niche or high-end segments, relieving pressure on the demand for CCA units. The presence of more private operators can also spur innovation in designing better services to complement the living arrangements.
For instance, there is a need for more innovation around designing assisted living facilities for seniors with dementia, with the number of patients projected to hit 152,000 by 2030. Those in the earlier stages of dementia may still wish to live independently in the familiarity of their own neighbourhoods, and can possibly do so if they have the right assisted living facilities and community support.
While private sector interest in assisted living is still muted, the outlook is promising. The Parry Avenue tender, for instance, attracted four bids from three developers, all of which the authorities deemed as acceptable. This showed that “there is no lack of expertise and creativity by market players to grow this niche segment”, one expert told The Straits Times.
Perhaps it is not a question of whether the private sector will eventually step into the assisted living market here, but when, and what unique business models companies can come up with to balance innovation with profitability.
