SINGAPORE, 21 March 2023 – Mr Lam Chern Woon (蓝振文), Head of Research and Consulting at EDMUND TIE comments on URA’s announcement on Tender Closing for Private Assisted Living Dev Site at Parry Avenue
The Concept and Price Revenue tender for the private assisted living site at Parry Avenue closed today. A total of four bids were received, with one tenderer, PRE 20 (a subsidiary of Perennial Holdings) putting in two bids. The award of the site will be based on the evaluation of concept proposals submitted, followed by the highest bid from those shortlisted proposals.
The relatively muted participation in the tender can be attributed to the care component of the development, where at least 20% of the development shall be allocated to health and medical care (H&MC) use, including the mandatory provision of 100 nursing beds or more. Given the prohibition on land or strata subdivision, the tender presents the scope for the successful tenderer to operate a residential care business rather than a more traditional development model of selling off sub-titles to residents and providing ancillary care services.
Unsurprisingly, the bidders possess some healthcare expertise or experience in one form or another. One consortium includes Allium Healthcare Holdings which operates a residential aged care accommodation development. Another bidder, United Medical Development is an operator of private nursing homes. Perennial previously submitted the sole bid for a proposed dementia village at Gibraltar Crescent.
While the public sector has seen overwhelming reception to the affordable assisted-living Community Care Apartments (CCA), a key challenge will be to provide a private-sector analogue that strikes the right balance between quality and the cost of the product. Coming up with the hardware would be relatively easy, but the care elements and other software elements like social engagement, lifelong learning and integration with the community would be pivotal arriving at the right product.
As our population ages, it is a matter of time before private senior living products become more mainstream. While aging-in-place is still preferred by many, the costs can be prohibitive as medical needs rise with age. Breaking down societal stigmas and refining our housing typology would go a long way to allow more to age gracefully with adequate community and medical care support.
For further information, please contact:
Seah Li Ching (Ms)
DID: +65 6393 2369