Elderly care development in China is attracting more and more foreign investors, and the increased aging of the Chinese population has something to do with it.
More and more Chinese and international investors are looking into elderly care developments. The strong development in the sector is due to the rapidity with which China is aging.
According to China’s latest demographic data, the number of people aged 60 and over has increased by almost 50% over the past ten years, to 260 million today. A figure that represents 18% of the Chinese population today. By 2050, it is expected to almost double to nearly 500 million.
Moreover, it is estimated that 10% of people over 65 years old choose to move to a retirement home, and only 2 to 3% are willing to pay the price.
Faced with this data, many luxurious retirement homes are developing in the country. This is the case of the Ardor Gardens establishment, which offers fully equipped facilities. Residents can enjoy indoor swimming pools, yoga rooms, wine tasting and 24-hour treatments.
Australian real estate and infrastructure company Lendlease has invested $280 million in Ardor Gardens. It is one of several investors who see a future in the sector, especially with the political environment becoming more favorable.
“The market will probably be completely different in 10 years,” said Lendlease’s Chinese president, Ding Hui. “If you wait 10 years before you start thinking about buying land, learning, building a team and developing a business model, you would most likely have missed the opportunity.”
According to Ding Hui, you have to look ahead five to 10 years to realize that the demands will be greatly increased and that there is a “real challenge ahead.”
Lendlease is not alone in its interest in this growing market. A few national players, including blue chip insurers, private equity firms as well as real estate developers are moving into the luxury retirement home space.
For now, many of these companies have yet to make a profit in the senior care sector. They are banking on the growing demand for such facilities as well as changing societal norms in China that may become more profitable in the future.
Featured Photo / Source : Christophe Caranchini
What's Your Reaction?
[EN] CLAIRE DOMERGUE, A SPECIALIST IN COMMUNICATION IN THE LUXURY SECTOR, HAS SURROUNDED HERSELF WITH EXPERTS TO CREATE THE FIRST MEDIA DEDICATED TO THE ECONOMIC NEWS OF LUXURY AND FASHION. THE LATTER DRAWS THE ATTENTION OF ITS READERS TO ALL THE MAJOR PLAYERS IN THESE SECTORS WHO SHARE THEIR EXPERIENCES, VISIONS AND KNOW-HOW. MORE THAN A SPECIALIZED WEBZINE, LUXUS PLUS IS A MULTI-SECTOR INFORMATION SYSTEM, WHICH HAS BECOME THE REFERENCE MONITORING TOOL FOR LUXURY AND FASHION PROFESSIONALS. OUR NEWSLETTERS CONTRIBUTE TO MAKE OUR READERS AWARE OF THE CHANGES AFFECTING THE LUXURY INDUSTRIES. THANKS TO AN INCREASED WATCH AND AN EXCELLENT KNOWLEDGE OF THE SECTOR, WE ARE INTERESTED IN THE MAIN ECONOMIC AND TECHNOLOGICAL STAKES OF FASHION, FINE WATCHMAKING, JEWELRY, GASTRONOMY, COSMETICS, PERFUMES, HOTELS, PRESTIGIOUS REAL ESTATE...********[FR] Claire Domergue, spécialiste de la communication dans le secteur du luxe, s’est entourée d’experts pour créer le premier média consacré à l’actualité économique du Luxe et de la mode. Ce dernier attire tout particulièrement l’attention de ses lecteurs sur l’ensemble des acteurs majeurs de ces secteurs qui y partagent leurs expériences, visions et savoir-faire. Plus qu’un webzine spécialisé, Luxus Plus est un système d’information multi-sectoriel, devenu l’outil de veille de référence pour les professionnels du luxe et de la mode. Nos newsletters de veille contribuent en effet à sensibiliser nos lecteurs aux mutations qui touchent les industries du luxe. Grâce à une veille accrue et à une excellente connaissance du secteur, nous nous intéressons aux principaux enjeux économiques et technologiques de la mode, la haute horlogerie, la joaillerie, la gastronomie, des cosmétiques, parfums, de l’hôtellerie, l’immobilier de prestige…