A recent article highlights how young and wealthy Chinese people are now seeking to purchase senior living facilities and are viewing them as long-term viable investment opportunities. There “is an increasing number of prospective residents planning for the future and investors looking to secure a piece of the pie in the world’s largest economy.” There are a number of different variables that have contributed to this trend, including “a timely combination of inadequate senior housing inventory, increasing life expectancy, demographic shifts and the effects of China’s one-child policy.” One of the biggest factors that has fueled the interest by young wealthy Chinese toward investing in Senior Living Facilities is “high interest in relocating to a retirement community when they age.” Chinese people are anticipating potential adverse changes in the senior housing inventory and are seeking to plan ahead, and make the investment now rather than later where there may be significantly more uncertainty.
There are a number of other significant factors that cause the interest among young wealthy Chinese in investing in Senior Living Facilities. As Jeffrey Davis, chairman of Chicago-based Cambridge Realty Capital has described, where Chinese elderly are choosing to live is also changing. “The children aren’t living near their parents anymore [and] China has experienced a population migration from rural to urban areas over the past two decades.” To confirm this, various housing reports in China show that approximately “70% of China’s millionaires are interested in joining a high-end retirement community in the future, and 45% believe they will need these communities.” Suchreports are especially significant and supportive of the trend toward investment in senior living facilities and include responses from 1,119 high net worth individuals (HNWIs) from 35 regions in China.
Senior Housing providers are at a pivotal moment in time, where there are many providers and investors alike, especially in China, taking economic advantage of the trends among senior residents to seek housing and care facilities as long-term viable investment vehicles. Cambridge Realty Capital is versed in a variety of investments in the senior housing market. Our experience and expertise make us a leader in the investment world.