China’s Silver Economy: Singapore Firm Sees Opportunity in Elderly Care Boom

As China’s aging population surges, the challenge of elderly care presents a pressing issue for Beijing but a promising opportunity for Singapore-based Perennial Holdings. With over 400 million Chinese expected to reach their 60s in the next decade, the real estate and healthcare firm is positioning itself to cater to the growing demand for premium care services for the country’s wealthier seniors. These individuals, born during China’s turbulent 1960s, have since benefited from decades of economic growth and rising prosperity.

Perennial’s chairman and CEO, Pua Seck Guan, highlighted that as incomes rise, expectations for higher-quality medical treatment also grow, creating gaps that cannot be entirely filled by government services. He noted that the demand for premium elderly care services offers attractive returns for investors.

China’s demographic shift, fueled by a slowing economy and the long-standing one-child policy, has placed immense pressure on its ability to support an aging population. Official estimates suggest that only 3% of retirees will move into nursing homes or similar facilities, with most relying on family or community care. To address this, Beijing has urged private-sector participation in building the “silver economy,” which includes everything from senior housing and medical facilities to diapers, wheelchairs, and tailored entertainment. State media estimates this sector could grow to $4.2 trillion. Pua described the potential market as vast and far from reaching saturation, leaving ample space for growth without fierce competition.

Perennial has already developed two integrated healthcare and senior living projects in China—one in Tianjin and another in Chengdu. The Tianjin development includes elderly homes and assisted-living apartments, while plans are underway to add senior care facilities to an existing project in Xi’an. Several other similar projects are also in the pipeline across major Chinese cities.

Global players have also begun tapping into China’s eldercare market. Over the past decade, Japanese and American senior home operators have entered the country, while Fortress Investment Group has partnered with Chinese conglomerate Fosun International to manage senior living communities. Domestic firms like Taikang Life Insurance and Sino-Ocean Group Holding have also constructed upscale retirement complexes to attract affluent retirees.

In a significant policy shift, Beijing lifted restrictions on foreign investment in its healthcare sector in September 2024, allowing overseas investors to run hospitals independently without a Chinese partner. Perennial’s general hospital in Tianjin, located near its residential development, is set to become China’s first wholly foreign-owned healthcare facility when it opens in early 2025.

Pua expressed enthusiasm for the opportunities in China’s healthcare and eldercare industries, describing the market as enormous and still in its early stages of development. He emphasized that with China’s aging population, the potential for growth remains immense.

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