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

Original article:Data from Asia-based hospitality consultancy C9 Hotelworks reveals that the market value of branded residential projects in Asia has reached a record high of US$26.6 billion ($35.5 billion). This translates to over 68,000 luxury units now available across the region.Vietnam leads the pack with 17,680 branded residential units spread across 59 properties. These units are priced at an average of US$350 per square foot (psf). Thailand follows closely behind with 16,271 branded residential units across 65 properties, with most of them priced at US$510 psf. The Philippines ranks third with 13,276 units across 46 properties, priced at around US$400 psf.However, Singapore boasts the highest prices for branded residences in the region, with units selling for US$2,140 psf. Next in line is Japan, where branded residential units typically fetch around US$1,935 psf.Read also: Gilded Age luxury living reimagined at The Towers of the Waldorf Astoria, New YorkAdvertisementAccording to Bill Barnett, managing director of C9 Hotelworks, there are also new emerging markets that have experienced a rapid increase in the number of branded residential projects in recent years. South Korea, for instance, currently has 3,026 branded residential units across 16 properties, while Malaysia has 6,014 units spread across 24 projects.Infographic: C9 HotelworksIn the post-Covid-19 era, urban-located branded residences make up 56% of the total existing supply in Asia. These luxury urban projects dominate the sector in terms of market value. For example, in South Korea, urban-branded residences sell for around US$2,670 psf, which is more than half the price of resort-branded residences that typically sell for US$1,040 psf. Similarly, in Thailand, urban-branded residences command an average price of US$770 psf, while resort-branded residences typically sell for US$430 psf.Asia’s branded residential market currently has around 12,330 units spread across 80 developments affiliated with luxury hotel brands, accounting for 31% of the total market supply. “Our data shows that having a reputable brand attached can command a premium of 30% to 35% above the market rate in the country. It also helps developers increase their market share,” says Barnett.Indeed, the appeal of top hospitality and lifestyle brands has prompted hotel groups and premium brands to demand higher licensing fees. It is now increasingly common for luxury hotel and lifestyle brands to ask for a 6% to 10% cut from the sale of each branded residential unit.Last August, Ananda Development, a Thai developer, and German automaker Porsche’s lifestyle brand Porsche Design, unveiled the ultra-luxury Porsche Design Tower Bangkok in Thonglor. The 22-unit tower, scheduled for completion in 2028, is Porsche’s first residential project in Asia, following the success of the Porsche Design Tower Miami a decade ago. The tower offers duplexes and quadplexes, with prices ranging from US$15 million to US$40 million.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, observes that in recent years, more luxury lifestyle brands have been exploring 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 AsiaAdvertisementOne Atelier has collaborated with several high-profile brands to create branded residences, such as 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 premium hospitality services, fashion or design-branded residences offer a rare status symbol that embodies the renowned design and luxury aesthetic that has made these brand names synonymous with lavish lifestyles today, explains Bianchi.Ananth Ramchandran, head of advisory and strategic transactions in hotels and hospitality (Asia) at CBRE, notes that property cooling measures have led many affluent Singapore-based buyers of branded residences to consider trophy assets in nearby regional markets.“We’ve noticed a significant drop in the number of discussions and enquiries from Singapore developers who are looking into high-end ultra-luxury branded residential projects in Singapore. Property cooling measures have considerably dampened the demand for foreign buyers,” he adds.Singapore-based high-net-worth individuals are increasingly looking at 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 Singaporean buyers,” he shares, and points out that in September, popular flight carriers like SIA, Scoot, AirAsia and Jetstar offered around 150 weekly flights between Singapore and Phuket.Read also: KSK Land launches second tower of KL luxury project 8 ConlayAdvertisementJason Thelen, senior director of sales and marketing at Sudara Residences, a Thai-based developer, concurs: “Singapore has quickly become our top regional market for buyers looking for second homes, making up over 45% of regional purchases.”Hospitality operators like The Ascott are also capitalising on the future growth of the branded residential segment in Asia, says Saowarin Chanprakaisi, vice-president of business development at The Ascott. “We believe that the emotional connection of our brands like Ascott, The Crest Collection and Oakwood Premier have loyal followings in the market.”“Branded residential operators need to establish and maintain trust in the brand’s ability to deliver the level of service that translates into the long-term value proposition of the asset,” she says. She adds that Ascott is eyeing an expansion in its market share in the region by partnering with developers who are interested in venturing into the branded residential market.

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