How big is the investment opportunity in China's senior housing market? 

Although the golden age of the silver industry is coming, there is still a long way to go to nurture the market. Globally, there are 60,000 products designed specifically for the elderly, but in China, the figure stands at 2,000. In developed countries, the number of beds in senior homes account for three to five percent of the senior population. In China, the figure is rather low, only 0.8 percent. 

In first-tier cities, another problem is the high prices of houses. For the elderly consumers, the monthly cost for living at a senior home already fetches a high price, but for investors, the rate of return on their investment is still too low. So we can put more unused state-owned properties and countryside land aside for the building of senior homes as a way to lower the hefty house prices. 

The price of capital is also very impressive. Real estate developers need a quick return on equity in that the cost of lending is expensive. But making a profit from the senior care industry entails a comparatively long period and a large amount of money raised with low cost. As a result, the financing approach should be more creative, for example, set up real estate investment trust to get a return from the capital in short time. 

China now has 240 million senior citizens that account for 17 percent of its population. Fifteen years later, in the year 2035, the number will double. There is for sure a rising demand for senior housing in the society.

China is witnessing a consumption upgrade, and the silver industry will also experience that in the coming years.