Senior living offers potential as alternative investment option
The megatrend of ageing populations challenges cities worldwide in terms of accommodation and care, and Hong Kong is no different. The lack of buildable land and even buildings that can be refurbished create concerns over limited senior living options, especially for today’s seniors.
As a result, there is a market need to provide a product that caters for this senior demographic. And with limited supply, demand, and stable income, it creates viable interest for investors, developers and operators, especially as we believe senior living assets could reach yields of up to 3.25% per annum, outperforming residential and Grade A office returns.