The Real Estate Information Center recognizes the significance of Thailand's demographic shift towards an aging society, which will fully materialize in the next 1-2 years. This means that the population aged over 60 will account for more than 20.0% of the total Thai population. It is projected that the elderly population will rapidly increase to 28.0% by 2035. However, the development of housing to accommodate the elderly is currently growing slowly and is insufficient to meet the existing demand.

The 2023 nationwide survey of housing projects for the elderly marks the beginning of creating a database of elderly housing for both the public and private sectors to use in planning suitable housing development for elderly individuals across all income levels. This information will also be disseminated to the public to assist in planning housing for themselves or elderly family members.

Overview of Elderly Housing in Thailand

The Real Estate Information Center surveyed 758 housing projects for the elderly, accommodating a total of 19,490 individuals, with an occupancy rate of 69.3%. The findings revealed that (1) there are 708 nursing homes or elderly care facilities, accommodating 15,324 individuals or 78.6%, with an occupancy rate of 63.7%; (2) there are 19 residential projects designed for self-sufficient elderly individuals, based on Universal Design principles, accommodating 1,328 individuals, such as Suwan Kaniveth, Thai Red Cross Society, Wellness City Project, and Busaya Niwet in Phra Nakhon Si Ayutthaya, with an occupancy rate of 73.0%; (3) there are 26 charity/foundation facilities accommodating 2,681 individuals, with a 100.0% occupancy rate; (4) there are 4 hospitals accommodating 155 individuals, with a 53.5% occupancy rate; and (5) there is 1 daycare facility.

The distribution of elderly housing projects across the top 10 provinces accounts for 574 projects or 75.7% of all elderly housing. The distribution by province is as follows: (1) Bangkok has 257 projects accommodating 7,140 individuals, with an occupancy rate of 68.2%; (2) Nonthaburi has 78 projects accommodating 1,759 individuals, with an occupancy rate of 68.3%; (3) Chiang Mai has 54 projects accommodating 688 individuals, with an occupancy rate of 81.8%; (4) Chonburi has 42 projects accommodating 822 individuals, with an occupancy rate of 64.6%; (5) Pathum Thani has 39 projects accommodating 877 individuals, with an occupancy rate of 72.5%; (6) Nakhon Pathom has 30 projects accommodating 876 individuals, with an occupancy rate of 59.1%; (7) Samut Prakan has 24 projects accommodating 1,206 individuals, with an occupancy rate of 40.1%; (8) Khon Kaen has 19 projects accommodating 669 individuals, with an occupancy rate of 88.9%; (9) Ratchaburi has 16 projects accommodating 425 individuals, with an occupancy rate of 39.1%; and (10) Phitsanulok has 15 projects accommodating 217 individuals, with an occupancy rate of 79.1%.

The survey also found that the majority of housing rights for the elderly are monthly rental rights, with 699 projects or 92.5%. This is followed by lifetime residency rights with 34 projects or 4.5%, ownership rights with 14 projects or 1.9%, and long-term rental rights with 9 projects or 1.2% of all low-income housing projects.

In terms of project characteristics, most utilize single-family home designs, accounting for 56.6%, followed by multi-family residential buildings at 33.3%. Projects with no more than 20 beds account for 54.8%, while those with more than 20 beds account for 45.2%. It is noted that current elderly housing in Thailand primarily focuses on accommodating Thai elderly individuals, comprising approximately 99.1%.

Dr. Vichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center, observed that "Although housing projects for the elderly have significantly expanded over the past 5-6 years, the developments are concentrated in certain areas and have not been evenly distributed across various regions. This results in a lack of adequate housing for the elderly, and overall, the supply remains insufficient compared to current demand.

As seen, compared to the current elderly population of 12.9 million in Thailand, it is estimated that about 5% or approximately 650,000 elderly individuals will require housing. However, it is projected that only 1.0% or about 130,000 elderly individuals will be able to access elderly housing services, while currently, there are only enough housing units to accommodate fewer than 20,000 individuals. Of these, 435 units are located in Bangkok and its vicinity, accommodating approximately 12,000 individuals, representing 57.0% and 61.4% of the national total, respectively. Furthermore, most developed projects cater to individuals with relatively good to high income, leaving many elderly individuals with moderate to low income still lacking adequate housing. It is evident that some state-provided elderly housing facilities currently have waiting lists of 2,500 to 3,000 individuals, yet no agency has been able to provide housing for them. These issues present a significant and urgent challenge for the government to find ways to develop sufficient housing for the elderly across all demographics.

Additionally, to successfully implement policies that attract foreign retirees to reside long-term in Thailand, the country must develop more standardized elderly housing alongside the Medical Hub and health tourism initiatives. This will help position Thailand as a Retirement Heaven and Retirement Destination for elderly individuals worldwide, which is crucial in attracting foreigners seeking long-term residency during retirement, making Thailand the best choice globally due to financial reasons aligned with their pensions, as well as offering high standards and services compared to other countries.

Nursing Homes for the Elderly in Thailand

Nursing homes or elderly care facilities have seen significant development in recent years. As of the second quarter of 2023, there are 708 facilities nationwide, providing a total of 15,324 beds across 55 provinces. Most are located in major provinces and regional urban centers such as Bangkok and its vicinity, Chiang Mai, Phitsanulok, Nakhon Sawan, Phra Nakhon Si Ayutthaya, Saraburi, Chonburi, Rayong, Nakhon Ratchasima, Khon Kaen, Udon Thani, and Ubon Ratchathani. Regarding service pricing, the most common rental price range set by projects is between 10,001-20,000 THB, accounting for 42.6%. The second most common range is 20,001-30,000 THB at 36.1%, followed by 30,001-50,000 THB at 14.2%, and above 50,000 THB at 5.7%. Notably, the price range below 10,000 THB accounts for only 1.5%, indicating that affordable nursing homes for the elderly are still quite limited.

The survey of nursing home occupancy for the elderly found that out of a total of 12,093 beds, the occupancy rate is 76.0%. Projects with fewer than 20 beds have a higher occupancy rate than those with 20 or more beds. The northeastern region has the highest occupancy rate at 81.4%, followed by the northern region at 70.9%, and the central region at 68.6%. Interestingly, Bangkok and its vicinity, which have the highest number of beds, have an occupancy rate of only 63.1%, while the western region has the lowest occupancy rate at approximately 51.3%.

When analyzed by province, Roi Et, Sakon Nakhon, and Surin have occupancy rates of 100%. However, it is noteworthy that each of these provinces has only one elderly housing project, indicating a potential demand for nursing homes in these areas, but insufficient supply.

Dr. Vichai Wiratthakhan concluded by stating, "Nursing homes have experienced significant growth over the past 5-6 years, with an average annual growth rate of 25.1% from 2018 to 2023. It is projected that the average annual growth rate will reach 30.5% between 2024 and 2028, with a business size of no less than 9.5 billion THB by 2028. Between 2029 and 2033, an average annual sales growth rate of 15.0% is expected, with a value of no less than 19.2 billion THB by 2033. Furthermore, the development of elderly housing may trend towards new business models, such as franchises, where nursing home operators collaborate with other real estate developers, such as condominium projects, single-family homes, hotels, and resorts, by converting some areas of the projects into nursing homes. This includes repurposing unsold condominium units or portions of single-family homes to incorporate nursing home functions or adapting existing projects into multi-generational living spaces for all ages, creating project highlights to attract those seeking housing, especially buyers planning for retirement or children looking for suitable housing for their elderly parents.

Moreover, another interesting group of elderly individuals is those seeking to renovate their existing homes, which is a significant group as the proportion of elderly individuals is expected to rise from 20% currently to nearly 30% in about 10 years. The minimum target number in the Department of Elderly Affairs' housing renovation plan for the elderly is over 400,000 homes between 2024 and 2036. This does not include renovations of existing homes for the general public and the conversion of buildings into nursing homes. When combined, this reflects a substantial market opportunity for the construction-related business that may see significant expansion.

Therefore, the development of housing for the elderly is a matter that the government must urgently address by formulating policies and planning for development seriously, to ensure that the elderly receive proper care. Elderly housing encompasses all four essential factors for living: "food, clothing, medical care, and housing," and is also a crucial component in driving the Thai economy and the real estate sector in the future," Dr. Vichai concluded.