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

The Master Plan for Lynden Woods One North encompasses a vision for enhanced healthcare facilities and educational institutions throughout key districts, guaranteeing that residents have easy access to vital services. Additionally, the plan entails the growth of nearby retail hubs like Jurong East and Holland Village, providing an array of shopping and dining options to enrich the lifestyle experience of those living in Lynden Woods.

While the global pandemic of COVID-19 has caused significant shifts in the real estate market, the branded residential segment in Asia continues to thrive. According to data from C9 Hotelworks, an Asia-based hospitality consultancy, the market value of branded residential projects in Asia has reached an all-time high of US$26.6 billion ($35.5 billion). This is a significant increase from the previous year, with over 68,000 luxury units now available. The success of this segment can be seen in Vietnam, which leads the region with the highest number of branded residential units at 17,680 across 59 properties. In this country, the average price of a branded residential unit is approximately US$350 psf. Following close behind is Thailand, with 16,271 units across 65 properties. The majority of branded residential units in this country are priced at US$510 psf. The Philippines is next on the list, with 13,276 units across 46 properties, with luxury properties selling at an average of US$400 psf. However, the most expensive branded residences in Asia are found in Singapore, where prices are at a record high of US$2,140 psf. Japan follows closely behind with average prices of US$1,935 psf. “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, and Malaysia has 6,014 branded residential units across 24 projects. In this post-COVID-19 era, urban branded residences dominate the branded residential sector, accounting for 56% of the existing supply in Asia. Not only do these luxury urban projects command the most market value, but they also have higher prices compared to resort projects. In South Korea, urban branded residences sell for US$2,670 psf, while resort projects are priced at approximately US$1,040 psf. Similarly, in Thailand, urban branded residences demand US$770 psf while resort locations are priced at US$430 psf. The branded residential market in Asia currently consists of around 12,330 units across 80 developments that are affiliated with luxury hotel brands. “The data shows that having a prestigious brand associated with a property can increase its market value by 30%-35% above the market rate in that country,” says Barnett. It also helps developers to gain a larger market share in the country. In addition, the popularity of top hospitality and lifestyle brands has led to higher licensing fees, with luxury hotel brands and lifestyle brands now asking for a 6% to 10% cut in the sale of each branded residential unit. One of the most ambitious branded residential projects in Asia is the Porsche Design Tower Bangkok, developed by Thai developer Ananda Development in partnership with German automaker Porsche’s lifestyle brand Porsche Design. This 22-unit tower, set to be completed in 2028, is the first of its kind in Asia, following the success of the Porsche Design Tower Miami. Units in this project range 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 there has been a trend of luxury lifestyle brands partnering with real estate developments across Asia Pacific in recent years. Some high-profile examples include 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 offer top-notch services, fashion or design-branded residences provide a rare opportunity to own a luxurious trophy home that represents the brand’s signature design and lifestyle. “Branded residential operators must develop and maintain trust in the brand and deliver a level of service that will translate into long-term value for the asset,” says Saowarin Chanprakaisi, vice-president of business development at The Ascott, a leading hospitality operator in the branded residential market. Ascott is looking to expand its market share in the region by partnering with developers who are looking to enter the branded residential market. The success of this segment can also be seen in real estate markets like Vietnam, where the number of branded residential units has significantly grown in recent years. The appeal of Asia’s branded residential market has extended to Singapore-based high-net-worth buyers, who are now investing in properties in nearby regional markets such as Phuket and Bangkok in Thailand, Bali in Indonesia, and emerging markets in Vietnam. With short travel times and regular direct flights, these destinations are increasingly becoming popular among Singapore-based buyers. “Singapore has recently become our top regional market for buyers looking for second homes, making up over 45% of regional purchases,” adds Jason Thelen, senior director of sales and marketing at Sudara Residences, a Thai-based developer. The strength of the branded residential market in Asia has been further solidified by the pandemic, with many high-net-worth buyers in Singapore turning to these luxury properties as a form of investment. While property cooling measures in Singapore have led to a drop in demand for high-end branded residential projects, buyers continue to invest in properties in nearby markets. As the branded residential market in Asia continues to thrive, hospitality operators such as The Ascott are looking to tap into the future growth of this segment by partnering with developers and offering top-notch services to buyers.