Time to review planning to raise accommodation supply for senior living: Redas

SINGAPORE needs to review whether it should have a separate zoning for senior living amid increased demand and demographic shifts, the Real Estate Developers’ Association of Singapore (Redas) said.

Like many parts of the world, Singapore faces the challenge of an ageing population, said Redas president Tan Swee Yiow.

“With rising life expectancy and a low fertility rate, we will have more than 900,000 seniors aged 65 and above by 2030.”

Tan was addressing developers and members of the real estate industry at the Redas Spring Festival Celebration held at the Grand Copthorne Waterfront Singapore on Thursday (Feb 15).

“With this demographic shift comes an increased demand for senior-living accommodation,” he noted.

Such accommodation could also be integrated within a mixed development, he said. “The unit size, functional layout, design and smart features for such housing units also needs to be adjusted. We think that more piloted projects should be pushed out.”

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Tan’s address comes ahead of the Budget Statement, which will be delivered on Friday.

Last year, Redas maintained its call to the government to consider recalibrating certain policies that could promote property market stability and achieve the nation’s urban rejuvenation needs.

“This is particularly so for the land Additional Buyer’s Stamp Duty (ABSD) regime, which was first introduced 12 years ago in 2011,” explained Tan.

Currently, developers purchasing land to build residential property are subject to an ABSD rate of 40 per cent, of which 5 per cent is paid upfront and 35 per cent is remittable.

They are required to pay the 35 per cent ABSD if they do not complete and sell 100 per cent of the units in the project within five years.

The 35 per cent rate was increased in 2021 from 25 per cent previously as part of property cooling measures amid concerns that rising prices were unsustainable.

“2023 was indeed a very challenging year. There are many unfavourable operating conditions, but fortunately Singapore performed relatively well… Office occupancy rates (were) very high. Residential sales have dipped, but prices are relatively stable.

“With the expected stabilisation of interest rates, economists are looking at 2024 with more optimism. Singapore’s economy is expected to grow by 1 to 3 per cent,” Tan pointed out.