Costs of public community care apartments reduced, basic services cut following lacklustre demand
Demand is nonetheless expected to pick up again with the more affordable pricing, say observers.
Public community care apartments in Singapore have experienced reduced costs and basic services being cut due to dwindling demand, according to property firm Realion (OrangeTee & ETC) Group. The Housing Board launched five such projects across Bukit Batok, Queenstown, Bedok, Geylang, and Sengkang, but only the Bukit Batok project saw a surge in interest, with 706 applicants vying for 169 units.
The other projects were undersubscribed, with the lowest rate being 0.7. Senior-friendly apartments with care and social services are an option provided by the Ministry of Health (MOH), Ministry of National Development, and HDB for seniors. Basic Service Packages (BSP) are included, which offer round-the-clock emergency response, assistance with simple home fixes, interpreting bills, arranging day care, and housekeeping services.
However, over the past five years, BSP prices have significantly increased, with the latest projects charging up to $168,000 for a 35-year lease. Vanguard Healthcare, the operator of these apartments, attributed the price hikes to inflation and operational cost adjustments. It also mentioned that removing the full upfront payment option allowed for flexibility in adjusting the operating model of the projects.
Recently, authorities announced a reduction in monthly BSP fees, a streamlining of service models, and a 35% to 95% subsidy for eligible residents for specific BSP components. Additionally, the eligibility age for such apartments will be lowered from 65 to 55.
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