Good demand expected for new HDB community care flats, but target buyers still care about price, location
An artist's impression of a communal area for seniors living in new community care flats that will be built in Bukit Batok.
- The new community care HDB flats in Bukit Batok to be built should see good demand, property experts said
- They are somewhat similar to flats at Kampung Admiralty, which were all snapped up in the Build-To-Order exercise back in 2014
- One analyst said such flats catering to seniors occupy a niche segment of the market between conventional HDB flats and nursing homes
- However, the prices of the flats and its location are still important to some targeted buyers
SINGAPORE — Property analysts are expecting a good take-up rate for the new community care apartments in Bukit Batok where residents aged 65 and above may apply to live in public housing units that come with elder-friendly features and amenities.
Located along Bukit Batok West Avenue 9, the 160 or so Housing and Development Board (HDB) flats that are 32 sqm in size are expected to be ready by 2024 and are open for applications in February next year.
They come with services such as 24-hour emergency monitoring for residents who have medical conditions, basic health checks and simple home fixes provided by a community manager.
Mr Wong Xian Yang, the associate director of research at property company Cushman & Wakefield, said: “I think take-up would be good. This is somewhat similar to (flats at) Kampung Admiralty, which were all snapped up in the July 2014 Build-To-Order (BTO) exercise.”
He added that these flats occupy a niche segment of the market between conventional HDB flats and nursing homes for the older population.
“The subscription rates for two-room flexi flats are mostly over-subscribed for seniors, based on past launches in November and August, suggesting that there should be good demand for these flats as well,” Mr Wong said.
HDB, the Ministry of Health (MOH) and Ministry of National Development (MND) announced the launch of the new community care apartments in Bukit Batok on Thursday (Dec 10), and are open to residents aged 65 and above at the time of application.
The indicative upfront cost of the flats ranges from S$62,000 to S$124,000, depending on the length of the lease and assuming that applicants pay for the basic service package in full at the time of purchase.
Mr Wong noted that the key difference between these new apartments and the elder-friendly residences at Kampung Admiralty is that there is a mandatory bundle of care services that come with the purchase of the flats.
Applicants may choose a lease ranging from 15 to 35 years, in five-year increments, such that it covers them until they are at least 95 years old — this is based on the increasing life expectancy of Singaporeans.
For example, someone who is 65 must pick a lease that is at least 30 years, while an 80-year-old applicant must pick a lease that is at least 15 years.
WHY NEW FLATS WOULD BE POPULAR
Mr Wong said: “Offering studio apartments on short leases makes it affordable for mobile and able older homeowners who are independent and do not need high levels of assistance or supervision for day-to-day activities. This is timely given Singapore’s ageing population.”
Mr Ismail Gafoor, chief executive officer of property company PropNex, told TODAY that with the expected increase in the aging population here, this launch is “in that right direction” by giving options to seniors, especially people who are in greater need of assistance.
“I think, because of the well-thought-out integrated support system catering to elders, these schemes will be popular for two reasons — one, mainly because of the lifestyle and the convenience and the holistic support system provided.
“The other reason is that it also allows seniors to resize their property by selling their existing HDB flats and cashing out (some of the sales proceeds). They will then have some money to live comfortably during their older years.
“We think it will be very popular… and going forward, there will probably be a greater need for such properties,” he said.
Mr Lee Sze Teck, director of research at property agency Huttons Asia, said that the current design of two-room HDB flexi flats does not cater for a domestic worker, so the value-added service from the bundled package will help overcome this shortfall.
“With an ageing population, there is a need for more assisted care facilities, but we have a land resource constraint. Also, not many seniors can afford assisted care facilities. If priced correctly, this new community care apartments can (tackle this) constraint,” Mr Lee said.
Property analyst Chris Koh, director at real estate consultancy Chris International, said: “We will see more demand for such community care apartments. The flexibility of choosing shorter leases and paying a lower price for the apartment is a pull factor. Coupled with the elder-friendly features and 24-hour emergency monitoring, these will definitely attract older buyers,” he said.
With the success of the Kampung Admiralty community, Mr Koh also said that more of such elder-friendly apartments might be built in other parts of Singapore.
WHAT BUYERS LIKE OR DO NOT LIKE ABOUT FLATS
Housewife Florence KH, 73, told TODAY that such schemes especially help seniors who are single or those who have problems living with their children. In such a community, they may make friends with other seniors and keep a lookout for one another.
“It will be good if they can offer more locations because not everyone wants to live so far from family. Some who are living in these new flats would still want to be near their siblings and relatives. Also, it will be good to not have all the old people living together because it can be depressing, too,” she said.
Housewife Agnes Lim, 74, said that the housing scheme is useful for people who might have dementia and other health ailments. It can be worrying especially if they are living on their own without someone keeping an eye on them or are abandoned.
However, Mdm Lim said that the pricing of the flat is important since not many seniors may have the money to buy a property at that age.
Mr Eddie Chen, 65, a semi-retired commercial photographer, said: “For me, I don't think I would like to live in such flats. I'm still healthy, I don't think I want to buy a flat that can last me just 35 years and the pricing is too expensive. Starting from S$62,000, that's absurd.
“But for people who have a lot of money and they need medical attention most of the time or assistance, then they may go for this instead of going for daycare or staying at a nursing home,” he said.
Mr Chen, who lives in a four-room flat in the Mount Faber area with his family, also does not like that these new flats are so “compact and congested”.
“If I'm selling my present home and going for that, and the cost of living is escalating every year, then what's the point? Getting that little bit of money back (from the sale of my home) isn’t of much use. I'm already settled here where I live and it has been 20 years. I know my neighbours and I’m happy here.”
