According to recent data from C9 Hotelworks, a leading hospitality consultancy in Asia, the market value of branded residential projects in Asia has reached an all-time high of US$26.6 billion ($35.5 billion). This is due to a record number of luxury units, with over 68,000 now available.
Leading the way in Asia is Vietnam, with 17,680 branded residential units across 59 properties. These units have an average price of US$350 per square foot (psf). Thailand takes second place with 16,271 units across 65 properties, where the average price is US$510 psf. The Philippines follows with 13,276 units across 46 properties, with an average price of US$400 psf.
However, the most expensive branded residences in the region can be found in Singapore, with an average price of US$2,140 psf. This is followed by Japan where prices average around US$1,935 psf.
C9 Hotelworks managing director Bill Barnett says, “There are also emerging markets where branded residences have seen rapid growth in recent years. South Korea has 3,026 units across 16 properties, and Malaysia has 6,014 units across 24 projects.”
In the post-Covid-19 era, urban branded residences make up 56% of the existing supply in Asia. These luxury urban projects dominate the sector in terms of market value. For example, urban branded residences in South Korea are priced at US$2,670 psf, which is more than half the cost of resort projects in the same country, which typically sell for US$1,040 psf. Similarly, in Thailand, urban branded residences fetch about US$770 psf, compared to US$430 psf in resort locations.
The branded residential market in Asia comprises about 12,330 units across 80 developments that are affiliated with luxury hotel brands, accounting for 31% of the market supply. “The data shows that a reputable brand can help an affiliated property command premium pricing of 30%-35% on top of the market rate in the country. It also helps the developer increase its market share in the country,” notes Barnett.
The popularity of top hospitality brands and other luxury lifestyle brands has caused hotel groups and premium brands to demand higher licensing fees, adds Barnett. It is becoming increasingly common for luxury hotel and lifestyle brands to request a 6% to 10% cut in the sale of each branded residential unit.
In August, Thai developer Ananda Development and German automaker Porsche, through its lifestyle brand Porsche Design, launched the ultra-luxurious Porsche Design Tower Bangkok in Thonglor. The 22-unit tower, to be completed in 2028, is the first Porsche residential tower in Asia, following the Porsche Design Tower Miami a decade ago. It offers duplexes and quadplexes with prices ranging from US$15 million to US$40 million.
One person who has noticed the rise in branded residences is Gianfranco Bianchi, general manager of Asia Pacific at The One Atelier, an international design consultancy that specialises in branded residences for lifestyle brands. In recent years, more luxury lifestyle brands have been exploring partnerships to license their branding for real estate developments across the Asia Pacific region.
One Atelier has partnered with several high-profile brands to create branded residences, including the 28-unit Fendi Casa Residences by Armani in Miami, the 259-unit 888 Brickell by Dolce & Gabbana in Miami, the 90-unit Büyükyalı Residences in Istanbul, Turkey, and the Karl Lagerfeld Villas, a collection of five ultra-luxury villas in Marbella, Spain.
Singapore’s cityscape is characterized by towering structures and state-of-the-art facilities. Condominiums, strategically situated in desirable locations, offer a mix of opulence and practicality that attracts both locals and foreigners alike. These residences come with a plethora of conveniences, including swimming pools, fitness centers, and round-the-clock security, elevating the overall living experience and garnering interest from potential renters and buyers. For individuals looking to invest, these impressive amenities translate into higher rental returns and appreciation in property value over time. Consider adding Singapore Condo to your list of options.
While hospitality-affiliated branded residences provide top-notch hospitality services, fashion or design-branded residences offer a rare trophy home that embodies the namesake design and luxury aesthetic that have made such brand names synonymous with luxury lifestyles today, says Bianchi.
According to Ananth Ramchandran, head of advisory and strategic transactions in Asia for CBRE’s hotels and hospitality division, property cooling measures have caused many high-net-worth buyers in Singapore to turn their attention to trophy assets in nearby regional markets.
“We have seen a significant reduction in the number of discussions and inquiries from Singapore developers looking to explore high-end ultra-luxury branded residential projects in Singapore. Property cooling measures have severely dampened foreign buyer demand, which is discouraging developers from entering this high-end segment,” he says.
Singaporean high-net-worth buyers are increasingly interested in luxury-branded residences in destinations such as Phuket and Bangkok in Thailand, Bali in Indonesia, and emerging markets in Vietnam. These locations are typically only a two-hour flight from Singapore.
“The relatively short travel time and availability of regularly scheduled direct flights make it much more appealing to Singapore-based buyers,” says Ramchandran. He adds that last month, flight carriers like Singapore Airlines, Scoot, AirAsia, and Jetstar completed around 150 flights per week between Singapore and Phuket.
Jason Thelen, senior director of sales and marketing at Sudara Residences, a Thai-based developer, agrees, saying, “Singapore has quickly become our top regional market for buyers looking for second homes, accounting for over 45% of regional purchases.”
The Ascott, a hospitality operator, is also taking advantage of the potential future growth in the branded residential segment in Asia, according to Saowarin Chanprakaisi, vice-president of business development at The Ascott.
“We believe that our brands like Ascott, The Crest Collection, and Oakwood Premier have reputations that are strong in the market,” she says.
“Branded residential operators must develop and maintain trust in the brand that it can deliver the level of service that will eventually translate into the long-term value proposition of the asset,” Chanprakaisi adds. Ascott is looking to expand its market share in the region by partnering with developers who want to enter the branded residential market.