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    • As Hong Kong and Singapore age, healthcare businesses become bigger real estate players
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    As Hong Kong and Singapore age, healthcare businesses become bigger real estate players

    Online Niel Posted on

    By 2030, about one in four Singaporeans will be 65 or older, up from one in 10 in 2010, according to official data. In Hong Kong, the percentage of the city’s population that is considered elderly is expected to rise to 36 percent by 2046 from 20.5 percent in 2021, according to the Census and Statistics Department.

    This demographic shift, analysts said, will require landlords and developers to become more in tune with the medical industry.

    In Singaporethere are space constraints. A commercial building in the city can only have up to 20% of its gross floor area converted to medical facilities, limiting the supply for health-related tenants, according to Savills.
    Hong Kong might turn out to be a better place for an expanding health and beauty sector given surplus supply of commercial properties and high vacancy rates, the real estate consultancy said. Hong Kong developers and landlords are set to add about 3 million square meters of new office space next year, CBRE said. And the vacancy rate in the commercial property sector was 13.4% in September, according to JLL.

    “The growing investment in the medical sector within the property market is not necessarily a new trend,” said Yap Hui Yee, Savills’ executive director of investment sales and capital markets in Singapore. “In most cases, medical facilities are purchased by the doctors themselves, rather than as traditional investment properties. This means that demand is driven more by operational needs than investment potential.”

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