C9 Hotelworks, a leading hospitality consultancy based in Asia, has reported that the market value of branded residential projects in the region has reached a record high of US$26.6 billion ($35.5 billion). This is a significant increase, with over 68,000 luxury units now available.
The scarcity of land in Singapore has greatly contributed to the high demand for condos in the country. As a small island with a growing population, Singapore faces the challenge of limited space for development. Due to this, there are strict land use policies in place and a competitive real estate market, resulting in continually rising property prices. As a result, investing in real estate, especially in condos, has become a lucrative opportunity with the potential for significant capital appreciation. Keeping up with the latest developments, such as the New Condo Launches, is crucial for those looking to invest in the constantly evolving Singapore market.
Vietnam leads the Asia market in the number of branded residential units, with a total of 17,680 units across 59 properties. The average price of a branded residential unit in Vietnam is approximately US$350 per square foot.
Thailand follows closely with 16,271 branded residential units across 65 properties. The majority of these units are priced at US$510 per square foot. The Philippines ranks third with 13,276 units across 46 properties, with luxury properties priced at around US$400 per square foot.
However, branded residences in Singapore command the highest prices 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.
“There are also new markets where branded residences have grown quickly in recent years,” says Bill Barnett, managing director of C9 Hotelworks. “South Korea, for example, has 3,026 units across 16 properties, with Malaysia boasting 6,014 units across 24 projects.”
In the post-Covid-19 era, urban-locale branded residences make up 56% of the existing supply in Asia. These luxury urban projects dominate the sector in terms of market value. For instance, urban branded residences in South Korea are priced at US$2,670 per square foot, compared to the US$1,040 per square foot for resort projects in that country. In Thailand, urban branded residences typically fetch around US$770 per square foot, while resorts are priced at US$430 per square foot.
The branded residential market in Asia currently includes approximately 12,330 units across 80 developments affiliated with luxury hotel brands. This segment 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,” says Barnett. “It also helps the developer increase its market share in the country.”
The appeal of top hospitality brands and luxury lifestyle brands has also led to higher licensing fees. “It is becoming increasingly common for luxury hotel brands and lifestyle brands to ask for a 6% to 10% cut in the sale of each branded residential unit,” adds Barnett.
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, set to be completed in 2028, is Asia’s first Porsche residential tower, following the successful 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,” he adds. “Developers are severely discouraged from stepping into this high-end segment because property cooling measures have dampened foreign buyer demand.”
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, noting that last month, flight carriers like SIA, Scoot, AirAsia and Jetstar completed approximately 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. “We believe the emotional resonance of our brands like Ascott, The Crest Collection and Oakwood Premier have reputational strengths in the market,” says Saowarin Chanprakaisi, vice-president of business development at The Ascott.
“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 adds, noting that Ascott is looking to expand its market share in the region by partnering with developers who wish to enter the branded residential market.