According to research by C9 Hotelworks, a hospitality consultancy firm based in Asia, the market value of branded residential projects in Asia has reached a record high of US$26.6 billion ($35.5 billion). Currently, there are over 68,000 luxury units available, with Vietnam leading the market in terms of the number of branded residential units. The country has 17,680 units across 59 properties, with an average price of about US$350 per square foot (psf). Thailand comes in second place with 16,271 units across 65 properties, where most branded residential units are priced at US$510 psf. The Philippines is next on the list with 13,276 units across 46 properties, priced at approximately US$400 psf.
Singapore, however, commands the highest prices in the region for branded residences, with an average of US$2,140 psf for these luxury properties. It is followed by Japan, where prices are around US$1,935 psf.
C9 Hotelworks’ managing director, Bill Barnett, revealed that there are also emerging markets where branded residences have seen significant growth in recent years, such as South Korea with 3,026 units across 16 properties and Malaysia with 6,014 units across 24 projects.
In the post-Covid-19 era, urban-located branded residences make up 56% of the market supply in Asia, with these luxury urban projects dominating the sector in terms of market value. For instance, urban branded residences in South Korea are priced at US$2,670 psf, significantly higher than the average price of US$1,040 psf for resort projects in the country. Similarly, in Thailand, urban branded residences fetch an average of US$770 psf, while resort properties are priced at US$430 psf.
The branded residential market in Asia comprises about 12,330 units across 80 developments associated with luxury hotel brands, accounting for 31% of the market supply. According to Barnett, the data shows that having a reputable brand associated with a property can help it command a premium price of between 30% to 35% above the market rate in the country, and increase market share for the developer.
Barnett also shared that the popularity of top hospitality brands and luxury lifestyle brands has led to an increase in licensing fees, with some luxury hotel and lifestyle brands asking for a 6% to 10% share in the sale of each branded residential unit. For instance, Thai developer Ananda Development and German luxury brand Porsche collaborated to launch the ultra-luxury Porsche Design Tower Bangkok in Thonglor last August. The 22-unit tower, which will be completed in 2028, is the first Porsche residential tower in Asia, following the Porsche Design Tower Miami launched a decade ago. Prices for units at the Bangkok development range from US$15 million to US$40 million.
Gianfranco Bianchi, general manager of Asia Pacific at The One Atelier, an international design consultancy specialising in branded residences for lifestyle brands, noted that in recent years, more luxury lifestyle brands have been exploring partnerships to license their branding to real estate developments across the Asia-Pacific region. Some of the high-profile brands One Atelier has collaborated with include 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 in Marbella, Spain.
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 these brands synonymous with luxury living, says Bianchi.
Ananth Ramchandran, head of advisory and strategic transactions in hotels and hospitality (Asia) at CBRE, revealed that property cooling measures in Singapore have led to a decrease in interest from high-net-worth buyers in the country for branded residences. As a result, many are looking to nearby regional markets such as Phuket and Bangkok in Thailand, Bali in Indonesia, and emerging markets in Vietnam. These locations are usually just a two-hour flight from Singapore, making them more attractive to Singapore-based buyers.
According to Ramchandran, flight carriers such as Singapore Airlines, Scoot, AirAsia and Jetstar have completed about 150 flights per week between Singapore and Phuket last month.
Jason Thelen, senior director of sales and marketing at Sudara Residences, a Thai-based developer, added that Singapore has become the top regional market for buyers looking for second homes, making up over 45% of regional purchases. Hospitality operators, such as The Ascott, are also looking to tap into the future growth of the branded residential segment in Asia, says Saowarin Chanprakaisi, vice-president of business development at The Ascott. She believes that the emotional resonance of brands like Ascott, The Crest Collection and Oakwood Premier, have reputational strengths in the market.
Chanprakaisi adds that branded residential operators have to develop and maintain trust in the brand to deliver the level of service that ultimately translates into the long-term value proposition of the asset. As such, Ascott is seeking to expand its market share in the region by partnering with developers looking to enter the branded residential market.