Jun 20, 2012
(SCMP)
According to Knight Frank, Beijing should spur the development of retirement housing for the mainland's aging population by offering incentives to private developers and investors. Developers and investors are still searching for a viable business model despite the strong demand.
Thomas Lam, Head of Greater China Research at Knight Frank, says the government should take the initiative to help support retirement housing by offering incentives to developers to build this specialist form of housing, adding that tax incentives or construction subsidies could be considered.
Developers' reluctance to invest in retirement housing projects is due to the higher costs involved in meeting customers' need for specialist facilities, a location close to good transport links, and a noise-free environment. The ensuing property prices become unaffordable for many retirees as developers seek to recoup these higher costs.
