The rise of Thailand's ageing population has driven several property developers to team up with major hospital operators to provide a full scope of care facilities and services for senior retirement.
Thailand will be an aged society, with more than 20% of its population above the age of 60, by 2022. Apart from being the first developing country that becomes an aged society, Thailand is also expected to be the first developing country to become a hyper-aged society by 2035, with more than 30% of the population above the age of 60.
The increase in demand, in addition to the limited options of retirement homes in Thailand, has become an opportunity for property developers to enter the senior living industry.
The key element in senior living property is the constantly changing needs of residents as the level of care increases as they grow older, from a simple building with universal design, including ramps and large doorways for wheelchairs, to a room with 24-hour care and services.
Developers have started seeing that care will be a critical element in the later stages of life and the services provided will eventually become more important than the property itself. Therefore, they aim to create products that will not only be limited only to the universal design of the senior living space, but also offer a high level of care and services for assisted living by teaming up with well-known hospitals to form health and wellness-oriented projects.
In 2018, we have seen some developers and hospital operators announcing partnerships to form projects with a full spectrum of care and services for the elderly. Sansiri has recently announced a joint venture with Tokyu and Samitivej Hospital to develop a wellness residential project in Krungthep Kreetha worth more than 2.4 billion baht that targets health-conscious consumers and caters to the growing wellness trend in Thailand.
Moreover, Bumrungrad Hospital is planning a project with SET-listed company M.K. Real Estate to develop a healthcare and wellness centre in Bang Krachao while SC Asset also revealed that they have started looking at an opportunity to develop a project with healthcare services with Praram 9 Hospital by focusing on the constantly changing needs of residents.
Currently, it is too early to tell which senior housing model will work in Thailand and who will emerge as a winner in this new market. Most developers are still in experimental stages since there is no single solution that will fulfil all the requirements when people's needs are constantly changing.
As the level of care required for the elderly increases, it is the service that matters and it is the service that buyers pay for, not how pretty the property is.
Onchanok Nawapruek is an analyst at Research and Consulting, CBRE Thailand. She can be reached at bangkok@cbre.co.th Facebook: CBREThailand LinkedIn: CBRE Thailand LINE@: CBRE Thailand Twitter: @CBREThailand and website: www.cbre.co.th