SINGAPORE: With around one in four Singaporeans expected to be aged 65 and above by 2030, there is increasing demand for wellness services and offerings.

Developers and investors are seeking to capitalise on the growing market by expanding their real estate portfolios and building such facilities.

Singapore-listed global real asset manager CapitaLand Investment, for instance, set up a fund in 2023 that focused on investing in healthcare, medical and wellness locally and in Southeast Asia.

Last year, the fund acquired a 50 per cent stake in Lyf Bugis, a hotel offering a suite of health and wellness programmes including nutrition, sleep and aromatherapy.

The hotel’s workshops also feature traditional Chinese medicine (TCM) practices such as ‘gua sha’, which uses a stone tool to sculpt the face and neck.

More recently, the fund invested S$190 million (US$145 million) in an orthopedic hospital and two wellness resorts in Bangkok.

CapitaLand Investment’s CEO of Southeast Asia Investment Patricia Goh said wellness is applicable to all age groups, and that people may focus on different programmes and activities as they age.

She said rising disposable income and awareness of active ageing may also encourage people to spend more on wellness and healthcare, which they increasingly see as necessary.

“When it comes to healthcare and wellness, people generally accept that these are the (areas) that you are willing to spend (on),” said Ms Goh.

Another firm looking to capture more ground in the eldercare market is Perennial Holdings. 

The real estate firm is building a S$4 million wellness centre, which combines Western and traditional Chinese medicine treatments.

The company’s CEO and executive chairman Pua Seck Guan said the facility can provide wellness and rehabilitation services for elderly patients.

Apart from eldercare, the firm is also looking at medical wellness, sports wellness and other concepts aimed at affluent customers.

CHALLENGES IN GROWING WELLNESS INDUSTRY

Perennial Holdings, which has experience running hospitals and rehabilitation facilities abroad, said zoning regulations and high manpower costs here are major challenges for private sector entrants to the market.

Mr Pua said that in well-regulated countries like Singapore, the zoning and planning for such sites is determined by the government.

He added that difficulty in securing these sites is one of the reasons affecting the growth of the wellness sector, adding he hopes authorities can relax certain regulations.

He said working with regulators like the Singapore Tourism Board (STB) can further develop the wellness industry by attracting wealthy travellers.

“Singapore is very well-positioned to be a wellness centre if we can create and develop this industry properly,” said Mr Pua.

In July 2024, the STB called for proposals for a new wellness centre at the Marina South Coastal site, but the deadline has since been extended twice.

Huttons Asia’s senior director of data analytics Lee Sze Teck said he believes there is a lack of big or renowned companies which have the capability to develop the site, located near Marina Barrage.

The site is intended to house a “world-class” wellness attraction, announced in May 2024 by Singapore’s Minister-in-charge of Trade Relations Grace Fu.

Mr Lee said many countries are facing new uncertainties due to the ongoing tariffs imposed by the United States.

He added that some companies are evaluating their investments and assessing the impact of tariffs on eventual consumer demand.