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What is the retirement community market like in China? What are the largest ones? How much of the Chinese population lives in retirement communities?
China's aging population combined with societal factors and one-child families mean a growing demand for retirement communities in the country. While lower-end rural facilities could have vacancy rates of nearly 50%, there is a particular demand for luxury communities in urban areas. There are no clear numbers available in terms of how many elder Chinese currently live in retirement communities, but it's clear that it's becoming far less common for elderly parents to reside with their children, as was traditionally the case. There are numerous very large retirement communities in various regions with many more being developed by both Chinese and foreign-based real estate developers and other entities.
DEFINITION OF "RETIREMENT COMMUNITY"
"Retirement community" is a broad term without a specific universal definition. It can be used to refer to any type of living arrangement intended for retirement-aged individuals. This can encompass facilities ranging from nursing homes (where residents are cared for by medical professionals) to age-restricted neighborhoods where elderly residents live independently. For the purposes of this report, a broad definition was used, as the majority of the research does not differentiate between the various senior living arrangements. Additionally, many senior living communities include options for various levels of assistance and medical care.
CHINESE RETIREMENT COMMUNITY MARKET
In China, the current retirement age ranges from 50 (for blue-collar female workers) to 60 (for men.) As of December 2016, China has over 200 million residents aged 60 and over, and the number is expected to grow by approximately 8 million per year. By 2050, it's estimated that 30% of China's population will be ages 65+.
Traditionally, elderly Chinese would reside with their children or with other extended family members. However, this trend is changing. More modern lifestyles mean that younger Chinese may be less likely to take on a traditional caretaking role. Additionally, China's "one-child" policy (in effect from 1979-2015) means that many of today's adult caretakers are faced with the burden of supporting multiple elderly parents without the help of siblings. Combined with an increased life expectancy, these factors have resulted in a higher demand for retirement communities and other non-familial homes for elderly Chinese.
Chinese senior living facilities (retirement communities) include a wide variety of government-run and privately-owned operations offering a diverse environment and amenities. These range from very basic facilities (similar to nursing homes in the U.S.) to luxury communities where retirees live independently and have access to amenities such as pools, tennis courts, and planned activities.
Because the industry is growing and changing so rapidly, there are no accurate estimates of the number of Chinese "retirement communities" available. However, one study found that, as of 2015, China had around 4,000 "senior homes," which are comparable to American skilled nursing homes.
Additionally, as of 2015 (the most recent estimate publicly available), China had more than 5.50 million beds available in communities designed for the elderly, which amounted to 26 beds per 1000 elderly residents.
Some elderly individuals face a waiting list of up to 4 years to get into their preferred facility. However, as of 2015, the combined overall vacancy rate of all Chinese nursing homes was at 48%. This is attributed to a vast difference in the demand for urban faclities versus those in rural areas. Elderly Chinese far prefer to reside in city centers and other densely populated areas.
Research conducted from 2014-2015 found that approximately $4.33 billion was invested in Chinese senior living communities, with around 1,052,630 square meters of senior living space existing.
In particular, there appears to be significant demand for high-end retirement communities. A number of U.S. (and other foreign) investors are entering the Chinese senior living market.
ELDERLY CHINESE LIVING ARRANGEMENTS
Likely because the industry is new and rapidly growing, there aren't any readily-available statistics regarding the number of Chinese residents currently living in retirement communities. However, one study indicated that 23% of China's residents over the age of 65 live alone, and that half of elderly Chinese women don't live with their children.
TOP 10 LARGEST RETIREMENT COMMUNITIES
Again, due to the rapidly growing and changing industry, there isn't an authoritative list of the largest Chinese retirement communities publicly available. Additionally, many of the facilities own websites are in Chinese and not easily translated.
However, some of the largest Chinese senior living facilities are listed below.
**Please note that a list of 10 (with descriptions) would generally be considered a full Wonder request. Thus, I've abbreviated this section in order to be able to include the other information you've requested within the scope of a single Wonder request.
1. Vanke Dignified Life, in Hangzhou, has 575 housing units and its own nursing and rehabilitation centers. The grounds also include 35% "green space" for a nature-oriented environment.
As of 2016, Poly Real Estate had constructed or was in the process of constructing seven different senior living complexes in China. One of their largest, Hexihui, is a condo complex just outside of Beijing. Hexihui has 200 rooms (400 beds) and houses 300 full-time residents.
Cherish Yearn, in Shanghai, consists of 12 buildings containing 838 suites, and houses 1,600 residents.
4. Picea Town Retirement Community, in Tianjing City, consists of 17 buildings containing 2,277 individual apartments and its own hospital. Picea focuses on a "barrier-free" design and includes amenities such as a spa, greenhouse, and restaurant.
5. Union Life Continuing Care Community has 2005 units and 4,000 beds. As a "continuing care community," the facility provides different levels of medical care depending on a resident's needs.
In conclusion, the market for retirement communities in China is growing, due to the aging population and fewer elderly parents residing with their children. In particular, the luxury retirement community sector appears to be growing.