Branded Residences Asia Hit Record Market Value Us266 Bil More Fashion And Lifestyle Brands Entering

According to recent data from C9 Hotelworks, a hospitality consultancy based in Asia, the market value of branded residential projects in Asia has reached a new high of US$26.6 billion ($35.5 billion). This growth can be attributed to the availability of over 68,000 luxury units across the region.

Leading the pack in the number of branded residential units is Vietnam, with 17,680 units in 59 properties. With an average price of US$350 per square foot, Vietnam also boasts the most affordable branded residential units in Asia. Thailand follows closely behind with 16,271 units in 65 properties, with most units priced at US$510 per square foot. The Philippines ranks third with 13,276 units in 46 properties, priced at approximately US$400 per square foot.

However, Singapore boasts the highest prices for branded residences in the region, at an average of US$2,140 per square foot. Japan follows with an average price of US$1,935 per square foot.

C9 Hotelworks managing director Bill Barnett notes that there are also emerging markets where branded residences are gaining popularity, 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 dominate the market, making up 56% of the existing supply in Asia. These luxury urban projects also hold the highest market value. For example, urban branded residences in South Korea are priced at US$2,670 per square foot, while resort projects go for US$1,040 per square foot. Similarly, in Thailand, urban branded residences fetch about US$770 per square foot, while resort locations sell for US$430 per square foot.

The data also shows that having a reputable brand associated with a property can increase its market value by 30%-35% above the average price in the country, as well as attract a larger market share, according to Barnett.

The appeal of top hospitality and luxury lifestyle brands has led to an increase in licensing fees, with some brands asking for a 6%-10% cut in the sale of each branded residential unit. This trend has seen partnerships between luxury brands and real estate developers, resulting in highly sought-after properties.

For example, the Porsche Design Tower Bangkok in Thonglor, a collaboration between Thai developer Ananda Development and Porsche’s lifestyle brand Porsche Design, offers duplexes and quadplexes with prices ranging from US$15 million to US$40 million. The 22-unit tower, set to be completed in 2028, is the first in Asia, following the success of the Porsche Design Tower Miami.

Gianfranco Bianchi, general manager of Asia Pacific at The One Atelier, an international design consultancy specializing in branded residences for lifestyle brands, notes that more luxury lifestyle brands are entering the real estate market in the Asia Pacific region. The One Atelier has partnered with several high-profile brands to create branded residences, including Fendi Casa Residences, Dolce & Gabbana’s 888 Brickell, and Karl Lagerfeld Villas.

While hospitality-affiliated branded residences offer top-notch services, fashion or design-branded residences provide a rare opportunity to own a home that embodies the luxury and lifestyle associated with the brand. This has led to an increase in demand for branded residences among high-net-worth individuals, particularly those based in Singapore.

According to Ananth Ramchandran, head of advisory and strategic transactions in hotels and hospitality (Asia) at CBRE, cooling measures in Singapore have led to a decrease in interest from developers in the high-end ultra-luxury branded residential segment. This has resulted in Singaporean buyers looking for trophy assets in nearby regional markets, such as Phuket and Bangkok in Thailand, Bali in Indonesia, and emerging markets in Vietnam. With regular direct flights between these destinations and Singapore, they have become a popular choice for second homes.

Jason Thelen, senior director of sales and marketing at Sudara Residences, a Thai-based developer, notes that Singapore has quickly become their top regional market, accounting for over 45% of regional purchases. The Ascott, a hospitality operator, is also tapping into the growing branded residential market in Asia, with a focus on partnering with developers to expand their market share in the region.

Ultimately, the success of branded residences relies on maintaining trust in the brand and delivering exceptional service that translates into long-term value for the property. With the increased demand for luxury and lifestyle branded residences in the region, this segment is poised for continued growth and success.