Research on the possibility and feasibility of investing senior housing in China
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School of Engineering |
Master's thesis
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Authors
Date
2013
Department
Major/Subject
Kiinteistöoppi
Mcode
Maa-20
Degree programme
Language
en
Pages
viii + 51
Series
Abstract
Demographers predict that China will enter aging society by 2050. At that time, the number of senior people aged over 60 will reach 150 million approximately. By the end of 2012, the number of elderly people has reached 194 million, which consists of 14.3% of China's entire population (Hu and Peng, 2011). Due to the fast growing economy, Chinese are getting busier than ever before. Adults are so busy with their works that they can hardly spare time looking after their children. Therefore, a problem appears that some persons or organizations are required to be in charge of elderly citizens' retirement lives. In old days, elderly parents usually live with their children, who are supposed to look after their lives. However, it is rare for elderly to live with their children in most cities in China at present. The situation of elderly lives in rural area has become even worse. Due to the urbanization process, many farmers have moved into the well-developed city to earn money, while their parents have to live by themselves. In this circumstance, the senior housing is introduced as to cope with the aging problem in the society. With the help of professional experts in senior care, elderly people could easily live on their own. The senior housing products were not fully understood and accepted by most people many years ago. As time goes by, people's attitude towards senior housing has changed. Due to the aging trend in China, senior housing industry has become a good investment vehicle. However, the importance of investing on senior housing industry has been ignored by most investors by far. Housing investors in China normally invest in traditional real estate products, such as commercial real estates, residential real estates, logistics real estates, and hotels, while only a few investors in big cities have been involved in senior living products. Therefore, the market potential of senior housing industry is huge compared to the traditional real estate. China Life Insurance Company (hereafter referred as China Life) has recognized the potential of senior living industry, so the company decides to invest in a senior housing project, Wuqing ecocity. China Life's senior housing project aims at high-end market. The whole project could generate land development income, real estate income, value-added income and property rental Income. Through this real estate investment case study, not only the possibility of investing in senior housing has been proved, but also the great contribution to the prosperity of our society. Due to the fact that senior care is a comprehensive industry, a large number of senior care people and senior entertainment faculties are demand strongly and earnestly. With help from government and the maturity of the market, senior housing would be an attractive investment vehicle for investors.Description
Supervisor
Viitanen, KaukoThesis advisor
Niskanen, JaakkoKeywords
senior housing investment, senior care market, operating mode