Investors turn to safe-haven branded homes

Non-hotel brands such as fashion houses and car companies have entered the space. 

Investors are eyeing branded residences, now a distinct safe-haven asset, as global stock market swings push investment toward tangible assets, analysts said. 

“One of the market’s biggest drivers is the increasing number of high-net-worth individuals across the region who see these properties as both a lifestyle choice and a solid investment,” Otto Twist, Southeast Asia director for international residential sales at Savills Singapore, told Real Estate Asia. 

Asia’s branded residence sector had a record supply value of $26.6b, comprising 68,001 units in 2024, according to C9 Hotelworks Co. Ltd. 

Thailand led the market with a 23.3% share, followed by the Philippines with 17.3% and South Korea with 11.6%. Malaysia, Vietnam, and India collectively accounted for 24.5% of the total, it said. 

Twist said some of the most active markets for branded residences in the region are Thailand, which continues to attract local and international buyers, and Japan and Vietnam. 

With 4,771 branded residence units across 26 developments, Phuket has the highest concentration amongst key destinations, followed by Manila and Bangkok. 

“Whilst luxury hotel brands still dominate, we are now seeing non-hotel brands such as fashion houses, car companies, and lifestyle brands enter the space,” he said via Zoom. 

Bill Barnett, managing director at C9 Hotelworks, said Thai property developer Ananda is working with Porsche to build the Porsche Design Tower, with units priced at $15m to $40m. 

“Beyond automotive, we are also seeing the growing presence of fashion and culinary brands such as Fendi, Armani, and Nobu entering the residential market,” he said in a Zoom interview. 

Whilst accounting for only 5% of the market, branded residences are very lucrative, Barnett said. “Licensing their brand for residential projects allows them to tap into new sectors and leverage their existing brand equity.” 

He noted that with multimillion-dollar properties, the associated license fees typically range from 5% to 10% of the sales, offering a significant revenue stream for the brand. 

To maximise market growth, non-hospitality brands should partner with experienced real estate developers and property management firms that understand the industry, Barnett said. 

“Having the right local expertise is crucial, ensuring that the brand’s values and aesthetics are consistently reflected throughout the project,” the analyst said. 

The supply of branded residences in Asia is expected to almost double starting this year, as 43,100 units across 180 projects are completed. 

Twist expects the branded residence sector to grow in the secondary and resort markets, characterised by personalised products, high-end concierge services, digital integration, and a focus on sustainability and smart living.