According to 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 can be attributed to the availability of over 68,000 luxury units in the region.
Leading this trend is Vietnam, with 17,680 branded residential units across 59 properties. The average price of a branded residential unit in Vietnam is about US$350 psf. Thailand follows closely with 16,271 units across 65 properties, most of which 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.
However, Singapore takes the top spot for the highest prices in the region, with branded residences commanding US$2,140 psf. Japan follows behind with prices around US$1,935 psf.
Furthermore, C9 Hotelworks’ data shows that South Korea has seen a rapid growth in branded residences in recent years, with 3,026 units across 16 properties. Malaysia also shows promising numbers, with 6,014 branded residential units across 24 projects.
In the post-Covid-19 era, urban-locale branded residences take up 56% of the existing supply in Asia. These luxury urban projects are also dominating 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. Similarly, in Thailand, urban branded residences are priced around US$770 psf compared to US$430 psf in resort locations.
Approximately 31% of the market supply in Asia currently includes about 12,330 units across 80 developments affiliated with luxury hotel brands. According to Bill Barnett, managing director of C9 Hotelworks, this 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. It also assists developers in increasing their market share.
In recent years, there has been a growing trend of luxury lifestyle brands entering the branded residential market in the Asia Pacific region. Gianfranco Bianchi, general manager of Asia Pacific at The One Atelier, an international design consultancy, shares that they have partnered with several prestigious brands to create branded residences. These include Fendi Casa Residences by Armani in Miami, 888 Brickell by Dolce & Gabbana in Miami, Büyükyalı Residences in Istanbul, and the Karl Lagerfeld Villas in Spain.
While hospitality-affiliated branded residences provide top-notch services, fashion or design-branded residences offer a rare trophy home that embodies the namesake’s luxury aesthetic. Ananth Ramchandran, head of advisory and strategic transactions in hotels and hospitality (Asia) at CBRE, notes that property cooling measures have led many high-net-worth buyers in Singapore to consider trophy assets in nearby regional markets.
However, the relatively short travel time and availability of direct flights have made destinations like Phuket, Bangkok, and Bali, popular choices for Singapore-based buyers. According to Jason Thelen, senior director of sales and marketing at Sudara Residences, a Thai-based developer, Singapore has become their top regional market, accounting for over 45% of regional purchases.
The Ascott, a leading hospitality operator, is also tapping into the potential of the branded residential segment in Asia. Saowarin Chanprakaisi, vice-president of business development, shares that they believe in the strength of their brands like Ascott, The Crest Collection, and Oakwood Premier in the market. She adds that in order to maintain trust in the brand, it is important for branded residential operators to deliver consistent levels of service that will eventually translate into long-term value for the asset. Hence, The Ascott is actively seeking partnerships with developers who are interested in entering the branded residential market.