Willingness to pay (WTP) for elderly homes in China: A survey in Shanghai and Suzhou, China

With the growing ageing population in China, elderly home development has attracted sizable interest from both real estate developers and institutional investors. Whilst the demand is evidenced by the demographics, the market value of the elder home remains unknown. This study aims at investigating the market value of elderly homes and the consumer (elderly people)’s willingness-to-pay (WTP) by using the Contingent Valuation Method (CVM). Over 500 respondents in Shanghai and Suzhou, China, participated in the survey and the results show that WTP is positively associated with the consumer's income, education level, and residing area while negatively associated with his or her marital status and no. of children. The finding of this study helps the stakeholders i.e. developer, investor and local authority in the decision-making process when it comes to elderly home development.