At present, China’s population aging has entered the accelerated phase. In 2012, 194 million people were at or above 60 years old, accounting for 14.3% of the total population. In 2013, the aged population amounts to 202 million, accounting for 14.8%. At the same time, the increasing population of the oldest, childless and disabled elderly as well as those with chronic diseases exacerbates the aging problem.
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In response to the aging problem, China has issued a series of policies to support the aging industry and build the social aged care service system based on homes, communities and institutions. Now, the majority of the regions in China have proposed the “9073” plan (90% of the old people accept home-based care, 7% community-based care and 3% institution-based care). During the “Twelfth Five-Year”, China will erect the aged care service system consisting of centralized services and community- & home-based care.
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As of the end of 2011, China had a total of 39,145 aged care institutions with 3.132 million beds, which was far from meeting the domestic demand. Measured by the “9073” aged care system, China faced a shortage of 2.418 million aged care beds in 2011. Meanwhile, the limited number of paramedics can not meet the demand; according to the ratio 3:1, China needs 10 million paramedics at least, but now only less than 1 million paramedics are available.
In recent years, China has allowed social capital to enter the aged care field; meanwhile, the intensified aging embodies huge potentials of the aged care market. Social capital has flown into the aged care real estate industry. For instance, the projects developed by private enterprises such as Shanghai Qinheyuan and Sunset Glow have been put into operation.
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Real estate companies including Vanke, Poly Real Estate and R & F Properties, insurance firms like Taikang Life and China Life Insurance, diversified enterprises such as Harbin Institute of Technology Group Inc., Fosun Group and Legend Holdings and foreign-funded corporations like Fortress Investment and Emeritus Corp. have also set foot in the aged care real estate market.
China Aged Care Service Industry Report, 2011-2012: http://www.marketresearchreports.biz/analysis/151618
In terms of the residence for the elderly people, aged care service consists of home-based care and institution-based care. The former has long been the major model of aged care service in China. In recent years, along with the significant growth in the income and savings of Chinese people, more and more senior citizens prefer the latter. However, the supply of aged care institutions and nursing staff is far from meeting the market demand. As of the end of 2010, China had a total of 39,904 aged care institutions with 3.149 million beds, accommodating 2.426 million seniors who only accounted for about 0.6% of the population aged over 60 in China.
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