Data from an Asia-based hospitality consultancy, shows that the market value of branded residential projects in Asia has hit a record US$26+ billion, with over 68,000 luxury units now available.
Vietnam leads Asia in the number of branded residential units, with 17,680 across 59 properties. The average price of a branded residential unit in Vietnam is about US$350 psf. Thailand takes second place with 16,271 branded residential units across 65 properties.
The first Porsche Design Tower in Asia was launched last year, with units selling from US$15 million to US$40 million. (Picture: Ananda Development)
Most branded residential units there are priced at US$510 psf. The Philippines is next on the list, with 13,276 units across 46 properties. These luxury properties are priced at about US$400 psf.
However, branded residences in Singapore command the highest prices in the region, at US$2,140 psf. They are followed by branded residences in Japan, where prices are about US$1,935 psf.
“There are also new markets where branded residences have grown quickly in recent years — South Korea, which has 3,026 units across 16 properties and Malaysia, where there are 6,014 branded residential units across 24 projects,” says Bill Barnett, managing director of C9 Hotelworks.
Infographic: C9 Hotelworks
In the post-Covid-19 era, urban-locale branded residences take up 56% of the existing supply in Asia, and 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, more than half the cost of resort projects, which typically sell for US$1,040 psf in that country. Likewise, in Thailand, urban branded residences fetch about US$770 psf compared to US$430 psf in resort locations.
Asia’s branded residential market includes about 12,330 units across 80 developments affiliated with luxury hotel brands and accounts 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,” says Barnett.
The appeal of top hospitality brands and other luxury lifestyle brands has also spurred hotel groups and premium brands to ask for higher licensing fees, he says, adding that it is increasingly common for luxury hotel brands and lifestyle brands to arrive at the negotiating table asking for a 6% to10% cut in the sale of each branded residential unit.
Last August, Thai developer Ananda Development and German automaker Porsche, via its lifestyle brand Porsche Design, unveiled the ultra-luxury Porsche Design Tower Bangkok in Thonglor. The 22-unit tower, which will 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.
Gianfranco Bianchi, general manager of Asia Pacific at The One Atelier, an international design consultancy specialising in branded residences for lifestyle brands, notes that in recent years, more luxury lifestyle brands have explored partnerships to license their branding into 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.
While hospitality-affiliated branded residences provide top-notch hospitality services, fashion or design-branded residences offer a rare trophy home that conveys the namesake design and luxury aesthetic that have made such brand names synonymous with luxury lifestyles today, says Bianchi.
Ananth Ramchandran, head of advisory and strategic transactions in hotels and hospitality (Asia) at CBRE, says property cooling measures have led many high-net-worth Singapore-based buyers of branded residences to consider trophy assets in nearby regional markets.
“We’ve experienced a significant reduction in terms of the discussion and inquiries from Singapore developers to explore high-end ultra-luxury branded residential projects in Singapore. Developers are severely discouraged from stepping into this high-end segment because property cooling measures have dampened foreign buyer demand,” he adds.
888 Brickell is a branded residence in Miami that was designed by the fashion house Dolce & Gabbana.
Singapore-based high-net-worth buyers are also increasingly eyeing luxury-branded residences in destinations such as Phuket and Bangkok in Thailand, Bali in Indonesia, and emerging markets in Vietnam. These locations are typically just 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,” he says and adds that last month, flight carriers like SIA, Scoot, AirAsia and Jetstar completed about 150 flights per week between Singapore and Phuket.
Jason Thelen, senior director of sales and marketing at Sudara Residences, a Thai-based developer, adds: “Singapore has quickly become our top regional market for buyers looking for second homes, making up over 45% of regional purchases.”
Hospitality operators such as The Ascott are also tapping into the future growth of the branded residential segment in Asia, says Saowarin Chanprakaisi, vice-president of business development at The Ascott. “We believe the emotional resonance of our brands like Ascott, The Crest Collection and Oakwood Premier have reputational strengths in the market.”
“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,” she says, adding that Ascott is looking to expand its market share in the region by partnering with developers who would like to enter the branded residential market.
By Timothy Tay
