The branded residences sector is set for dramatic growth in Asia Pacific, serving the demands of the region’s growing cohort of wealthy buyers.

“According to Savills Global Residential Development Consultancy, the leading advisors on branded residences globally, more than 180 new branded residences will be built between now and 2032”, bringing the region’s total to over 360 projects. Much of the new supply will come in holiday destinations such as Vietnam and Thailand, but there is a growing number of projects in cities favoured by the region’s rich.

Otto Twist, Southeast Asia Director, International Residential Sales at Savills Singapore, says: “Asia will add more ultra-high net worth individuals than any other region in the coming years, boosting demand for luxury properties associated with leading brands.”

What is a branded residence? They are for-sale residential properties which are affiliated to and operated and managed by a globally-recognised brand. This is typically a luxury hotel brand, such as Mandarin Oriental or Ritz Carlton, and properties are often developed as part of a wider mixed-use project with a co-located hotel. However, some projects are standalone and now not always affiliated with a hotel brand.

Branded residences are usually a partnership between a brand and a developer. The brand grants a licence to the developer to market and sell residences under their brand name. The key to branded residence is service. Base services comprise concierge and the use of hotel amenities (if affiliated to one), or in some cases, dedicated amenities. On-demand services, at additional cost, can range from housekeeping to pet care.

“Wealthy buyers are looking for top-notch amenities and services, with the assurance that a well-regarded luxury brand is looking after them,” says Twist.

For developers, branded residences offer them a chance to associate with respected brands and to not only tap into the brands’ expertise in design but also their network and audience. “Branding a project offers so much upside for developers, if nothing else it’s a way of offering a point of differentiation in competitive markets” says Louis Keighley, Head of Global Residential Development Consultancy at Savills.

“There are significant premiums that can be achieved through branding a development combined with some equally impressive absorption rates made possible by the global reach and network these brands have.” The premium achieved in the APAC region for a branded development is 31% above the equivalent non-branded product.

Singapore’s Banyan Group is the leading operator in the region, with residences under such brands as Banyan Tree, Cassia and Angsana brands, followed by international hotel giants Accor and Marriott.

While most completed and pipeline developments in Asia Pacific are resort-based, more than one-third (36%) of the development pipeline comprises urban developments, demonstrating that Asian buyers are looking for more than just holiday homes.

For example, the number of branded residences in India is set to more than double between now and 2032 and most of these will be in urban locations, primarily in larger cities such as Mumbai and Delhi NCR. India’s growing population of high net worth individuals sees such residences as potential primary homes.

Nonetheless, the bulk of the region’s growth will come in two markets, Vietnam and Thailand, which have more than 75 new branded residences in the pipeline between them. Fast-growing Vietnam will account for the bulk of these and will overtake Thailand as the leading Asian location for branded residences by 2032.

Further reading:
Branded Residences – Asia Pacific

Contact us:
Otto Twist