Branded residential projects in Asia have reached a record market value of US$26.6 billion ($35.5 billion) according to data collected by C9 Hotelworks, an Asia-based hospitality consultancy. The luxury market currently offers over 68,000 units, with Vietnam taking the lead in the number of branded residential units with 17,680 across 59 properties. The average price for a branded residential unit in Vietnam is around US$350 per square foot (psf).Thailand is in second place with 16,271 branded residential units in 65 properties, with an average price of US$510 psf. Coming in third is the Philippines with 13,276 units in 46 properties, priced at an average of US$400 psf.Singapore has the highest prices for branded residences in the region, at an average of US$2,140 psf, followed by Japan at around US$1,935 psf. However, there are also emerging markets that have experienced rapid growth in the branded residential sector in recent years, such as South Korea with 3,026 units across 16 properties and Malaysia with 6,014 units in 24 projects, according to Bill Barnett, managing director of C9 Hotelworks.Infographic: C9 HotelworksIn the post-Covid-19 era, 56% of the existing branded residential supply in Asia is in urban locations, dominating the market in terms of value. In South Korea, urban branded residences are priced at an average of US$2,670 psf, while resort projects there typically sell for US$1,040 psf. Similarly, in Thailand, urban branded residences fetch around US$770 psf, compared to US$430 psf in resort locations.Approximately 12,330 of the 80 developments affiliated with luxury hotel brands in Asia make up 31% of the market supply, and according to Barnett, data shows that reputable brands can command premium pricing of 30%-35% on top of the market rate in a particular country. This is also a way for developers to increase their market share in a particular region.The appeal of top hospitality and lifestyle brands has also led to an increase in licensing fees, with luxury hotel and lifestyle brands now asking for a 6%-10% cut from 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. With only 22 units, prices range from US$15 million to US$40 million. This is the first Porsche residential tower in Asia, following the Porsche Design Tower Miami a decade ago.From left: Saowarin Chanprakaisi, vice-president of business development, The Ascott; Teo Junrong, vice-president of business development, The Ascott; David Johnson, CEO of Delivering Asia; Gianfranco Bianchi, general manager, Asia Pacific at The One Atelier; Jason Thelen, senior director of sales and marketing at Sudara Residences; Ananth Ramchandran, head of advisory and strategic transactions, hotels and hospitality Asia, CBRE; Lee Nai Jia, head of real estate intelligence of digital and software solutions, PropertyGuru Group and Bill Barnett, managing director of C9 Hotelworks. (Picture: C9 Hotelworks)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.Read also: Investors step up demand for branded residences in Southeast AsiaAdvertisementAdvertisementOne 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.Read also: KSK Land launches second tower of KL luxury project 8 ConlayAdvertisementAdvertisementJason 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.
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According to research conducted by C9 Hotelworks, a hospitality consultancy 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). This market offers over 68,000 luxury units, with Vietnam leading the way with 17,680 units across 59 properties. The average price for a branded residential unit in Vietnam is about US$350 per square foot (psf).Thailand takes second place with 16,271 branded residential units across 65 properties, with most units priced at US$510 psf. The Philippines is third on the list with 13,276 units across 46 properties, with prices averaging US$400 psf.However, in Singapore, branded residences command the highest prices in the region at an average of US$2,140 psf, followed by Japan at approximately US$1,935 psf. Interestingly, there are new and emerging markets in Asia where branded residential projects have seen rapid growth in recent years, including South Korea with 3,026 units across 16 properties and Malaysia with 6,014 units in 24 projects, according to Bill Barnett, managing director of C9 Hotelworks.Infographic: C9 HotelworksIn the current post-Covid-19 era, 56% of the existing supply of branded residences in Asia are located in urban areas, which dominate the market in terms of value. In South Korea, urban branded residences are priced at an average of US$2,670 psf, while resort projects typically sell for US$1,040 psf. Similarly, in Thailand, urban branded residences fetch around US$770 psf, compared to US$430 psf in resort locations.Approximately 12,330 units of the 80 developments affiliated with luxury hotel brands in Asia make up 31% of the market supply. According to Barnett, the data shows that a reputable brand can help a property command a premium pricing of 30%-35% on top of the market rate in the country, and it can also help developers increase their market share.The appeal of top hospitality and lifestyle brands has also led to an increase in licensing fees, with luxury hotel and lifestyle brands now asking for a 6%-10% cut from the sale of each branded residential unit. For example, Thai developer Ananda Development and German automaker Porsche, via its lifestyle brand Porsche Design, unveiled the ultra-luxury Porsche Design Tower Bangkok in Thonglor last August. With just 22 units, prices range from US$15 million to US$40 million. This is the first Porsche residential tower in Asia, following the Porsche Design Tower Miami a decade ago.From left: Saowarin Chanprakaisi, vice-president of business development, The Ascott; Teo Junrong, vice-president of business development, The Ascott; David Johnson, CEO of Delivering Asia; Gianfranco Bianchi, general manager, Asia Pacific at The One Atelier; Jason Thelen, senior director of sales and marketing at Sudara Residences; Ananth Ramchandran, head of advisory and strategic transactions, hotels and hospitality Asia, CBRE; Lee Nai Jia