Mon, Jul 07, 2008 page11

• INTERVIEW: Farglory chairman discusses housing

  In an aging society, Farglory Group chairman Chao Teng-hsiung, a long-time real-estate developer, has set his sights on the development of homes for the elderly in Taiwan. He talked to Taipei Times’ staff reporter Joyce Huang about living environments he believes elderly Taiwanese will welcome in the near future

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  Taipei Times: The Farglory Group (遠雄集團) has been thinking about building communities, or so-called “health villages,” for elderly people in Taiwan, which has a rapidly aging population. What has been keeping you from launching such hosing projects?

  Chao Teng-hsiung (趙藤雄): We want to develop our first “health village” project in Taipei, where land is scarce and expensive. Therefore, we hope to gain support from the government by allowing us to rezone cheaply priced areas that are originally slated for agricultural use or environmentally reserved areas. Schools or social welfare groups often have access to these lands. If the government gives its approval, we’d like to soon buy a plot of land to develop housing projects.

  But we are not sure yet whether the authorities will allow it. Such housing projects should be considered to be part of the social warfare system. If land cost can be rationalized, our construction pressures will be minimized and such homes will be affordable to the middle-income elderly.

  

  An undated photo of Farglory Group chairman Chao Teng-hsiung. Farglory builds mostly residential buildings in Taipei.

  PHOTO COURTESY OF CHEN KUAN-CHOU/ THE FARGLORY GROUP

  Taipei Times: Why Taipei? The cost of land is the highest in the country.

  Chao: Taipei is more convenient [for elderly people], and that will increase our chances of success. But we do not plan to limit such projects to Taipei. As a matter of fact, we are interested in building one of these communities in each [major] city [in Taiwan]. By doing so, young people, who work in the cities, need not spend a lot of time traveling to visit their parents or grandparents. They may be more willing to visit the community, where elderly people won’t feel left abandoned by their family. If elderly parents get sick, their children won’t have to take sick leave. They can go visit them before or after work, which places fewer burdens on working family members. Also, not too many elderly people would like to move to another city or county. Statistically, only 3 percent to 5 percent of residents in health villages are from out of town.

  TT: How big of a plot of land do you need?

  Chao: The size of land doesn’t necessarily matter. We can build a 30-home, 50-home, or 100-home community, depending on the market demand.

  TT: What is the ideal elderly home that you plan on building? Do you think elderly Taiwanese can accept living by themselves?

  Chao: If my concept is followed through, I am sure they will enjoy the lifestyle. If you’re talking about the community-oriented Chang Gung health and cultural village model, I am not so sure. [Chang Gung’s] community is so big and concentrated that it plans to house every senior citizen in the country. But mine is different. Mine combines nearby communities within a 3km to 5km distance, where 90 percent of elderly people can live without feeling alone.

  TT: How do you plan to provide a healthcare system or logistical services to residents?

  Chao: We will team up with nearby hospitals and medical professionals that can be on call to provide necessary services to elderly people. Farglory also plans to build its own hospital, which will also provide necessary back-up support. Meanwhile, Farglory has had many experiences in installing a telemedicine application system, which can also serve as an value-added alternative.

  TT: Farglory has an insurance subsidiary. Do you plan to sell related insurance coverage? For example, people in Japan can prepare for retirement by paying in advance for an elderly home.

  Chao: In Japan, people over 40 can begin to pay in installations for their elderly homes similar to buying an insurance coverage. When they turn 65, they can move into their new home. It is estimated that sales of such insurance products are ¥8.5 trillion [US$79 billion] in Japan. But sales of such coverage in Taiwan aren’t easy. The key is whether yet-to-be-built elderly homes will appeal to Taiwanese clients.
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