URA and MOH present the Parry Avenue location for the building of private assisted care facilities

Sep 29, 2022



On Thursday (September 29), the Urban Redevelopment Authority (URA) and Singapore's Ministry of Health (MOH) collaborated to offer a parcel of land located on Parry Avenue for purchase through a public tender. This will be for a private assisted living building that will serve as a pilot and will include amenities geared toward seniors.

The property piece is designated for residential use and comes with a lease that is good for sixty years. It has a total area of 12,912.1 square metres (sq m), however the maximum gross floor area (GFA) that may be accommodated is between 16,270 and 18,077 sq m. The maximum allowed height for a building is five stories. There is a prohibition on the subdivision of land and strata.

A minimum of sixty percent of the maximum GFA must be allocated to assisted living, and this percentage must include both individual aided living spaces and community areas. According to statements made by URA and MOH, a minimum of twenty percent of the maximum allowable gross floor area (GFA) would be allocated for use in health and medical care, with a need of one hundred beds in nursing homes.

The property at Parry Avenue can be found inside Rosyth Estate, and it is situated in close proximity to a number of dining and shopping establishments, including the Serangoon North Neighbourhood Centre and the Heartland Mall.

Nicholas Mak, head of research and consultation at ERA Singapore, recommended that for the project, residents may be provided varied options of leases that might cover them till the age of 95. This was one of the suggestions made by Nicholas Mak. According to the criteria provided by the URA on the sale of the property, it is required of all inhabitants living inside the subject development that they have a stay length of at least three months.

According to Mak, the construction on Parry Avenue would be an alternative for "long term rentals" from the point of view of the local inhabitants. Because of this, purchasing these residences will necessitate "a shift in mentality among Singapore's ageing population." "Rather of buying this house, they have decided to rent it out to tenants."

According to Mak, the rapidly ageing population of Singapore will be a primary demand driver for this new idea, with almost one in four inhabitants in the country reaching the age of 65 or older by the year 2030.

Mak mentioned that based on similar statistics of private condominiums, "the typical rental rate of 1-bedroom apartments in that area is roughly S$2,380 monthly." This information was provided in response to the question of what prices the units may be able to attract. Due to the specialised care services that are offered, the rental fee for these senior care apartments may fetch a premium. However, if the price is too high, customers may be discouraged from moving in, as he stated, "since they would be more likely to stay in their present houses."

The assisted living projects, also known as community care flats, which blend senior-friendly accommodation with care services were first launched by the government of Singapore more than a year prior to the commencement of the pilot assisted living project by the private sector.

In February of 2021, the first public assisted living units were made available for occupancy in Bukit Batok. Prices began at S$40,000 for a 15-year lease and increased to S$65,000 for a 35-year lease, and they were to be paid for in full up front with either cash or money from Central Provident Fund (CPF). There may be eligibility for government subsidies. Residents are also responsible for the payment of a basic service package, with prices beginning at S$22,000 for an unit that has a lease term of 15 years.

When the owners no longer require the flat, it will be returned to the Housing and Development Board, and neither it nor any of its contents can be purchased or rented out. The value of the remaining time on the lease will be repaid to the owners of the unit.

According to the senior head of research at Huttons Asia, Lee Sze Teck, assisted living fills a supply gap in the spectrum of options available to seniors.

"Some seniors may only require help with one activity of daily living and are extremely mobile, so assisted living may fit them more than a nursing home," Lee noted. "Some seniors may only need support with one activity of daily living and are very mobile."

The URA and MOH will implement a revenue tender based on a concept and price, which requires potential tenderers to submit their idea proposals and tender pricing in separate documents.

Huttons anticipates receiving a small number of proposals for the tender. It's possible that participants will include developers with previous experience working in healthcare or nursing homes. Others could form partnerships with healthcare providers.

On March 21, 2023, at twelve o'clock in the afternoon, the tender will shut.