SENIOR SERVICE IN ASIA

GROWING OLD GRACEFULLY

With several countries in Southeast Asia verging on becoming aged societies, catering to the requirements of mature investors will be a key challenge for developers

BY AL GERARD DE LA CRUZ

AGEING IN PLACE IS A HEALTHY CONCEPT, BUT THAT MEANS HAVING THE NECESSARY SERVICES AND MEDICAL FACILITIES TO SUPPORT THIS GOAL

With the death of Queen Elizabeth II, King Charles III, one of the world’s most visible baby boomers, inherited a USD25-billion real estate portfolio. Down another generation is Elon Musk, the world’s richest man, who had owned a chunk of California housing stock with an estimated worth of nearly USD130 million.

But the Tesla CEO and Britain’s new monarch are unrepresentative of their demographic cohorts’ property journeys, not least in Southeast Asia. While boomers and Generation X fared better in wealth accumulation than millennials and Generation Z, these elder generations lived through unique challenges spanning everything from the Vietnam War to the AIDS pandemic. Now retired or in the later stages of their careers, boomers and Gen X’ers live out family dynamics and medical experiences specific to their timelines. Developers and governments are primed for a sense of urgency around these generations as several countries in Southeast Asia verge on becoming aged societies. Thirty-three percent of the Thailand population would be aged 60 and over by 2040; in Malaysia, that proportion would be 15% by 2030. Citizens aged 65 and above now make up 18.4% of Singapore’s population. Born from 1946 to 1964, boomers benefited from the prosperous economic growth cycle after World War II. Generation X, born in the succeeding years until 1980, actually saw the highest wealth increase among all cohorts during the pandemic. Its oldest members will turn 60 by 2025.

“If there’s one commonality among baby boomers and Generation X, I would say that the health costs are going to be higher for them,” says Dr. Nai Jia Lee, head of real estate intelligence at the leading proptech

WITH ITS FRIENDLY CLIMATE AND PROXIMITY TO BANGKOK, HUA HIN HAS LONG BEEN A FAVOURED DESTINATION IN THAILAND FOR RETIREES

BALI IS ANOTHER LOCATION IN SOUTHEAST ASIA THAT HOLDS PLENTY OF APPEAL FOR SENIOR PROPERTY INVESTORS

company PropertyGuru. “If the state has to provide a certain level of healthcare, it would be a drain on their resources.”

From Apple’s Steve Jobs to Tencent Holdings’ Ma Huateng, boomers and Gen X’ers came of age during—and even helped bring about—the advent of personal computers and other disruptive technologies, creating enormous wealth for entire generations.

The current landscape reflects how the economies of Southeast Asia have been good for wealth accumulation. Southeast Asia’s high-net-worth individuals (HNWI), defined as those with a net worth of over USD1 million, are expected to almost triple by the middle of the decade from 2016, according to the Wealth Report by the consultancy Knight Frank. The number of ultra-high-net-worth individuals (UHNWI), those worth USD30 million or more, hit 4,206 in 2021, up from 3,874 the year before, in Singapore alone.

“Wealth preservation will continue to factor highly for buyers in each generation,” says Christine Li, head of research at Knight Frank Asia-Pacific. “And often, properties with strong wealth preservation qualities are well located in areas that cater to what buyers from each demographic cohort are looking for in a home.”

The retirement community model that has worked well for boomers in western nations still has not gone mainstream in Southeast Asia, despite the best efforts of developers.

“Culturally, strong familial ties and expectations of filial piety mean the concept of retirement communities remains a niche sector in the region currently, although with scope to develop,” adds Li.

The idea of retirement communities could still gain traction with declining marriages and births in the region. Retirement homes are likely to appeal to Generation X, a cohort nicknamed “baby busters” because of the decline in birth rates following the baby boom. Such homes may not be a hard sell to the cohort sometimes dubbed the “Latchkey Generation” for their precocious levels of independence as children.

As adults, Gen X’ers tend to delay or completely swear off marriages: a pattern being picked up by millennials.

GEN X vs GEN Y

While Generation X and Generation Y share many common characteristics, their housing arrangements could not be any more different.

“Gen X still has that very strong home ownership aspiration,” says Dr. Nai Jia Lee, head of real estate intelligence at PropertyGuru Group. “But when it comes to Gen Y or millennials, if trends continue, they actually may go into something like co-living and rentals.”

Gen X’ers have a strong affinity for comfort and luxury whereas millennials’ focus is on sustainability because of an awareness of climate change. Also, in Singapore and Thailand, up to 66% of millennials are most concerned about building their savings for emergencies or buying a future home, according to the latest property sentiment index by PropertyGuru. “Interestingly, at this point, what we see is that whenever people have a sudden spike in wealth, the first thing they buy is real estate and luxury items,” says Lee. “But more and more of them, especially the younger generations, target things of value, and sustainability, of course, is one of them.”

Younger generations who come into their fortune are also likelier to put their inheritance in higher-risk products like cryptocurrencies than cohorts before them. “The way they look at real estate may be different,” says Lee.

MULBERRY GROVE SUKHUMVIT IN BANGKOK HAS WIDE CORRIDORS AND ENTRANCES, GENTLY SLOPING RAMPS, RAILINGS FOR YOUNG AND OLD, AND COLOUR-CODED AREAS, AMONG OTHER UNIVERSAL DESIGN FEATURES

“But the problem is many property seekers do not want to go into something that has a stigma,” says Lee. “Developers realise that when they incorporate some of the elder-friendly types of elements into housing, people may feel that this is going to be just a development for old people. So, they will shun that development.”

To many Southeast Asian seniors and retirees, the concept of ageing in place presents a better alternative to retirement resorts built far from their support systems. In-place ageing simply means growing old in a location of one’s preference and remaining part of that community for as long as possible, skirting expensive institutional care in the process. “Ageing in place works and is more aligned with the Asian context,” Lee says. “It is a healthy concept,” concurs Victoria Garrett, head of residential for Knight Frank Asia-Pacific, “but that means having the necessary services and medical facilities to support this goal. Property developers should remain cognisant of this trend and focus on intergenerational models to tap opportunities that could emerge from such demographic shifts.” For ageing in place to be effective, governments need to rationalise their efforts around the most vulnerable segments of a greying society. At their best, the elderly can still be autonomous and sprightly, suitable candidates for active living communities—or incapacitated at their worst, shoos-in for residential care.

“The government has to create a financial ecosystem to help them, and that must be in place so that they don’t overstrain the healthcare sector,” says Lee. “Otherwise, if everyone doesn’t have that kind of social support, then you’ll make things very expensive and go out of hand.” Singapore has given its neighbours a glimpse of what can be done with the prudent use of state resources. The Housing & Development Board (HDB) last year launched its first assisted living public flats, featuring 24-hour emergency monitoring and accessibility features, for buyers aged 65 and above who want to live on their own. HDB also offers two-room flexi flats with lease terms as short as 15 years, in keeping with the property seekers’ reduced life expectancy.

WHERE THE EMPTY NESTERS ARE

Retirement communities, villages, and resorts tend to thrive in countries with enough land resources. Conversely, land scarcity and high land costs prevent such developments from proliferating in places like Singapore.

“In countries other than Singapore, it’s possible to have retirement villages because of the lower land prices and the accessibility to certain resources,” says Dr. Nai Jia Lee, head of real estate intelligence at PropertyGuru Group.

In Indonesia, for example, some developers have tracts of land near attractive locations with mountains, forests, and natural habitats conducive to rest and rehabilitation. Thailand, on the other hand, banks in its mature medical tourism industry to make healthcare accessible for members of a retirement community.

“They may do very, very well and much better than Singapore, but when it comes to how we use technology or universal design, Singapore would be leading as the need for those is becoming more and more urgent as we speak.”

Several countries across Southeast Asia are making a case for seniors besides their own. “Malaysia and the Philippines are actively courting opportunities and positioning themselves as an ideal place for international retirees,” says Christine Li, head of research at Knight Frank Asia-Pacific.

WITH ITS MANY SENIOR-FRIENDLY FACILITIES AND GREEN SPACES, THE ASPEN TREE AT THE FORESTIAS ADAPTS AN INTERNATIONAL MODEL OF HOLISTIC LIFETIME CARE FOR THE 50-AND-OVER SET IN THAILAND

The Singaporean government has also started such subsidies as the Silver Housing Bonus, supplementing the retirement incomes of elderly households when they rightsize their flats. Homeowners in their twilight years can also access the equity in their properties via reverse mortgages.

Inclusivity is as important as affordability; the property must play to the wider community. As younger generations forge housing pathways, experts advise empty nesters to rightsize in locations that hold the best value.

“If they are having the home for owner-occupation, they should be in places where they’re close to their kids and friends, where their social compact is, and where they have easy access to healthcare and different amenities,” says Lee. “This is very key because movement over time will be constrained.” At times, the pull of nostalgia draws Generation X from large built spaces to neighbourhoods that hold a lot of memories for them. “They want to be where they were when they grew up,” says Lee. “That’s why we see a lot of gentrification happening.”

Not all Southeast Asian countries share Singapore’s foresight in protecting vulnerable age groups. Where Singaporeans reap the benefits of the central provident fund later in life, many boomers and Gen X’ers elsewhere endure insufficient retirement plans, if at all.

Boomers can generally depend on the financial support of their children later in life. The reverse is also true for the many Gen X’ers who decide to remain single. “If the proportion of singles is going to be larger, then that would be an issue because they would not be supported by their kids,”

says Lee. “There must be a financing ecosystem to support them.”

But retirement itself is a concept in progress. Today, Generation X and succeeding cohorts are finding their work lives being extended. Since July, the retirement age in Singapore has been raised to 63, gradually rising to 65 by 2030.

It stands to reason that the housing solutions shunned today may well be tomorrow’s norms. “All these things don’t work out because of the social context that the family is fundamental,” says Lee. “Now that fundamental may change; it weakens every generation. It’s strong with the baby boomers, slightly weaker with Gen X, and even weaker with Gen Y as they transcend boundaries. The time after Gen Z is when things probably change.” Although the increase in property prices and current tax laws may be prohibitive for first-time buyers, younger cohorts can tap the wealth accumulated by boomers and Generation X, plus the outstanding GDP growth generated across Southeast Asia in general.

“These next generations will be keen to manage and continually grow these inheritances, and property purchases will reflect such goals,” says Garrett. “Properties in core locations will be preferred and with the younger cohorts’ more global view, these will also span across the globe.”

The 7th Annual PropertyGuru Cambodia Property Awards celebrated the leading lights of real estate at the Sofitel Phnom Penh Phokeethra on 26 August 2022.

Prince Real Estate Group won the top award of the year, Best Developer, as well as the title for Best Mixed Use Developer. Kambujaya Development Co., Ltd, named Best Breakthrough Developer, won several awards for its project Kambujaya Residences. Angkor Palace Development Co., Ltd., winner of the Best Boutique Developer title, gained accolades for multiple projects.

The Best Industrial Developer title went to C.I.A.C Investment Limited while Orkide Villa 3 Co., Ltd was named Best Lifestyle Developer. The sought-after Best Condo Development (Cambodia) award was awarded to Vue Aston by The Peninsula Capital Co., Ltd.

Charles Vann, executive vice-president of Canadia Group (whose subsidiaries include the Overseas Cambodian Investment Corporation) and director of Cambodia Airport Investment Co. Ltd., accepted the Cambodia Real Estate Personality of the Year award.

For the full list of winners, please visit asiapropertyawards.com/en/award/cambodia

THE JUDGES

Sorn Seap

Chairperson of the Awards in Cambodia and Executive Vice-President of the Cambodian Valuers and Estate Agents Association

Jenny Chea Sok You

Architect and Managing Director, CMED Construction

Jovany Antonio

Managing Director, DA&G Asset Management

Kinkesa Kim

Associate Director, CBRE Cambodia, Research & Consulting Services

Lim Veasna

Partner & Attorney-at-Law, Commercial Arbitrator and Mark Agent, Vinaya Law Firm

Michael Freeman

Operations Leader – Asia, Cova Group

Michel Cassagnes

Managing Director, Archetype Cambodia

Simon Griffiths

Managing Director, The Mall Company

Dr. Simon Vancliff

CEO, WB Sport Village Co., Ltd.

Thida Ann

Managing Director, ProPnex Cambodia

SPONSORS AND PARTNERS

Gold sponsor

Panasonic Cambodia

Gold sponsor CBRE Cambodia

Silver sponsor

Jotun (Cambodia) Ltd.

Official channel partner

History

Official magazine

Property Report by PropertyGuru

Official PR partner

Two Way PR

Media partners

Construction & Property and Southeast Asia Globe

Official ESG partner Baan Dek Foundation

Supporting association

EuroCham Cambodia

Official supervisor

HLB

CANADIA GROUP’S CHARLES VANN SHARES A LAUGH WITH PROPERTYGURU GROUP’S JULES KAY

ONE OF SEVERAL WINNING MOMENTS FOR KAMBUJAYA DEVELOPMENT CO., LTD

A SPEECH BY BEST LIFESTYLE DEVELOPER WINNER ORKIDE VILLA 3 CO., LTD

THE AWARD-WINNING TEAM OF ANGKOR PALACE DEVELOPMENT CO., LTD. C.I.A.C INVESTMENT LIMITED, THE YEAR’S BEST INDUSTRIAL DEVELOPER

PRINCE REAL ESTATE GROUP IS HAILED THE YEAR’S BEST DEVELOPER

THE PENINSULA CAPITAL CO., LTD. ACCEPTS A WIN FOR VUE ASTON

A TRIUMPHANT MOMENT FOR KY DEVELOPMENT

On 7 October 2022, the PropertyGuru Philippines Property Awards celebrated the programme’s milestone 10th edition. Robinsons Land was named Best Developer in one of nine winning titles for the company. Cebu Landmasters, Inc. also garnered nine wins, including the titles of Best Developer (Visayas) and Best Developer (Mindanao). SM Development Corporation (SMDC) accumulated various wins for its projects, including the mixed-use site Gold City. Aboitiz InfraCapital Economic Estates was hailed Best Industrial Developer while Torre Lorenzo Development Corporation was honoured as Best Boutique Developer.

Megaworld Corporation won the Best Hospitality Developer and Best Mixed Use Developer titles, with subsidiary GlobalEstate Resorts, Inc. (GERI) winning Best Lifestyle Developer.

PHINMA Maayo San Jose scored the coveted Best Housing Development (Philippines) title as The Seasons Residences earned the Best Condo Development (Philippines) award.

Lourdes Josephine Gotianun Yap, president and CEO of Filinvest Development Corporation, became the first woman to receive the Philippines Real Estate Personality of the Year award.

For the full list of winners, please visit asiapropertyawards.com/en/award/philippines

THE JUDGES

Cyndy Tan Jarabata

Chairperson of the Awards in the Philippines and President, TAJARA Leisure & Hospitality Group Inc.

Carlo Cordaro

President and CEO, Atelier A

Jaime A. Cura, Ph.D.

Vice-Chairman, The RGV Group of Companies

Jean Jacquelyn Nathania A. de Castro

CEO, ESCA Incorporated

Kathleen P. Obcemea

Principal Interior Designer, KPO Beyond Designs Co.

Luis Enrique T. Mangosing

CEO, Metro Development Managers, Inc. (MDMI)

Michelle Barretto

Founder and CEO, Vitamin B, Inc.

Philip Mareschal

Head of Property & Asset Management, JLL Philippines

Raymond Rufino

CEO, NEO

Richard Raymundo

BSc (Bus Econ), MRICS Managing Director, Colliers Philippines

SPONSORS AND PARTNERS

Platinum sponsor

Kohler

Gold sponsor Boysen Paints

Official channel partner

History

Official magazine

Property Report by PropertyGuru

Official newspaper The Philippine Star

Official PR partner

FleishmanHillard Manila

Media partners

BusinessWorld, Esquire Philippines, People Asia Magazine, PhilStar Property Report PH, Real Estate News PH, Real Living, The Manila Times, and WheninManila.com

Official ESG partner Baan Dek Foundation

Supporting associations

IFC – Building Resilience Index and IFC – Excellence in Design for Greater Efficiencies

Official supervisor

HLB

THE VICTORIOUS TEAM OF ROBINSONS LAND, THE COUNTRY’S BEST DEVELOPER

FILINVEST DEVELOPMENT CORPORATION’S LOURDES JOSEPHINE GOTIANUN YAP ACCEPTING HER HISTORIC WIN

THE BEST INDUSTRIAL DEVELOPER AWARD WENT TO ABOITIZ INFRACAPITAL ECONOMIC ESTATES

TORRE LORENZO DEVELOPMENT CORPORATION IS HAILED BEST BOUTIQUE DEVELOPER CEBU LANDMASTERS, INC. IS HAILED BEST DEVELOPER IN BOTH VISAYAS AND MINDANAO

MEGAWORLD CORPORATION ACCEPTING ONE OF SEVERAL WINNING TITLES

SMDC ENJOYED A SUCCESSFUL NIGHT WITH MULTIPLE WINS FOR ITS PROJECTS

APPLEONE MACTAN, INC. RECEIVED COVETED HONOURS SUCH AS BEST BRANDED RESIDENTIAL DEVELOPMENT

Dispatch

Rights and rungs

Singapore’s statutes favouring heterosexual marriage mean that LGBTQ+ couples in the country face major barriers in accessing affordable real estate

By Diana Hubbell

In August, Singapore’s Prime Minister Lee Hsien Loong made history by announcing that his country would finally do away with a colonial-era law criminalising samesex relations between men. “The PM of Singapore has taken a very significant step by announcing that Singapore will repeal section 377A of the penal code,” says Graeme Reid, director of the LGBT Rights Program at Human Rights Watch.

As news spread around the globe, many activist organisations commended Singapore. “This has been a long-term goal

LGBTQ+ COUPLES IN SINGAPORE ARE ALL BUT EXCLUDED FROM THE COUNTRY’S STATE-SUBSIDISED HOUSING SYSTEM

for activists in Singapore, and all legal routes to repeal had been exhausted by the time the prime minister made his announcement,” says Reid. “This development should be celebrated.”

Yet in the very same speech, the prime minister dealt a serious blow to the LGBTQ+ community by stating definitively that Singapore would “uphold and safeguard the institution of marriage” as currently defined in its Constitution, thereby ruling out marriage equality for same-sex couples for the foreseeable future. Since marriage is a cornerstone of many of the city-state’s policies on everything from adoption

Dispatch

TRUTH BE TOLD, MINORITY GROUPS HAVE VERY LIMITED OPTIONS. THE GOVERNMENT HAS REITERATED THAT MANY OF SINGAPORE’S SOCIAL POLICIES ARE CENTRED AROUND TRADITIONAL FAMILY UNITS WITH HETEROSEXUAL COUPLES

to education, that decision will have serious ramifications for many LGBTQ+ Singaporeans.

One of the most critical effects the announcement has in terms of wealth accumulation is that it all but cuts young, LGBTQ+ couples out of Singapore’s statesubsidised housing system. This matters enormously since it has the potential to put these couples at a financial disadvantage that will seriously hamper them in the long term.

“State-subsidised housing is often the first rung of the housing ladder for Singaporeans,” says Kah Poh Tay, an associate professor of real estate at the National University of Singapore. For the more than 80% of Singaporeans living in them, these statesubsidised homes are often their most important financial asset. “There are restrictions on transacting such homes because of the public subsidies embedded,” Tay says. “But it’s almost guaranteed that these homes will enjoy significant capital appreciation if and when they can be sold in the open market five years down.” When Singaporeans do resell these flats, it is typically at a considerable profit. In the first half of 2022 alone, 166 resale apartments fetched a minimum of SGD1 million. That’s up from 2021 when the number of SGD1 million HDB resale flats tripled.

“As the largest financial commitment of most folks in Singapore, public housing provides a solid base for a typical household’s wealth accumulation,” Tay says. “Especially since almost all such flats are priced ‘affordably’ using the price-slash-income metric.”

For the most part, Singapore’s statesubsidised housing program has been highly successful. Last year, the city-state’s homeless population declined to just 1,036. In contrast, in Los Angeles County, it rose to more than 69,000. The program is also a primary reason why nearly 90% of Singaporeans currently own their homes.

“The homeownership program introduced in the 1960s has been the cornerstone of the state-subsidised housing policy that helped build high ownership rates in Singapore,” says Tien Foo Sing, chair professor at the Department of Real Estate and director at the Institute of Real Estate and Urban Studies at the National University of Singapore.

As it stands, the Singaporean government reserves most of its state-subsidised housing system for young, married couples, who are eligible for grants of up to SGD80,000. Under the current system, LGBTQ+ couples only qualify as single buyers in Singapore’s subsidised housing system. That leaves them with lower subsidies and a far more limited selection of flats. It also means that, unlike married heterosexual couples, they cannot even enter the subsidised housing market until they reach the age of 35.

Given that both property prices and rents in the city-state are sky-high, this makes homeownership prohibitively expensive for most LGBTQ+ Singaporeans. According to a report by CBRE, property prices in Singapore soared by 10.6% in 2021. The Knight Frank Wealth Report 2022 found that SGD1.4 million is enough to purchase only 35.4 sqm

Dispatch

of prime real estate, making Singapore the fifth most expensive place to buy property in the world.

“Truth be told, minority groups have very limited options,” Tay says. “Law & Home Affairs minister K. Shanmugam has reiterated that many of Singapore’s social policies are centred around traditional family units with heterosexual couples.” At present, the median wait for one of these coveted subsidised apartments from the Housing & Development Board (HDB) is already four to five years. In other words, even LGBTQ+ couples that apply for the paltry offerings for single buyers at age 35 are unlikely to obtain an apartment before age 40. By that time, their heterosexual peers may already have purchased a home, flipped it for profit, and moved into more spacious accommodations suitable for a family.

“The current review of Section 377A of the penal code to decriminalise sex between men is unlikely to change the status quo on the family nucleus norms, which will remain the eligibility condition when buying subsidised public housing flats,” Sing says.

AT PRESENT, SINGLE BUYERS NEED TO WAIT AROUND FOUR TO FIVE YEARS AFTER APPLYING FOR A COVETED SUBSIDISED HDB APARTMENT

“Those people, including LGBTQ+ couples, who fall outside the family nucleus eligibility, may have to look out to private or resale HDB markets for their housing needs.”

As Reid and other LGBTQ+ activists have emphasised, repealing Section 377A is still a substantial, hard-won victory. “One of the obstacles to decriminalising same-sex relations in Singapore was that some argue that this will lead to same-sex marriage,” Reid says. “That is likely why the prime minister announced that Singapore will take steps to ensure that marriages will only be permitted between men and women, in the same speech as he announced the intention to decriminalise.”

At present, it remains unclear what the next stages will look like. Reid points out that it is still possible that the door will remain open for civil unions or other alternative legal arrangements that would give LGBTQ+ couples additional rights. However, the Singaporean government has not indicated this will be the case. And for as long as the current system remains in place, a sizable portion of Singapore’s population is being economically left behind.