Branded residences set for global boom

In Asia, Vietnam and Thailand are emerging as hotspots for premium housing.

The global market for luxury homes developed in partnership with premium consumer brands is poised for significant growth, with 900 projects currently in the pipeline, according to property analysts.

In Asia, Vietnam and Thailand are emerging as hotspots for branded residences—properties developed with lifestyle or luxury brands not traditionally associated with real estate, such as Porsche, Aston Martin, or fashion labels. 

“Globally, there are currently about 700 to 800 branded residences either completed, selling, or being marketed,” Benjamin Grint, global director of sales and partnerships at Bangkok-based consultancy Brand Atlas, told Real Estate Asia on the sidelines of the Global Property Expo in Singapore in July. “That’s the total over the past 50 years, with around 900 currently in the pipeline.”

The growth of branded residences in Southeast Asia is accelerating, he said, citing projects such as the Porsche Design Tower in Bangkok and the regional expansion of developments by Four Seasons, The Ritz-Carlton, Mandarin Oriental, W Residences, and Nobu.

Branded residences in Asia hit a record value of $30.7b in the first half, covering 38,893 units across 178 projects, according to a report by C9 Hotelworks Ltd. Asia had 67,353 units across 283 projects in the pipeline.

The Phuket-based hospitality consultancy said Asia’s branded residence market grew 10% annually in the past five years, with 57% of projects co-located with hotels.

In Southeast Asia, Grint sees a boom in branded residences, which often feature upscale amenities and hotel-style services, in Vietnam, Thailand, and Singapore. “Southeast Asia is going to be a real hub for branded residences.”

Vietnam leads Asia in the branded residence pipeline with a 27% share of active and announced projects, while Thailand has 21%, C9 Hotelworks said.

James Puddle, head of international residential for Southeast Asia at Jones Lang LaSalle, Inc., said branded residences are “increasing by the minute” in Southeast Asia, including Singapore. Data from C9 Hotelworks’ June report showed that Singapore had four branded residences with 1,309 units.

He cited rising interest in branded residences among younger high-net-worth Singaporeans. “They’re really intrigued by branded residences and are looking all over the globe,” he told Real Estate Asia at the Global Property Expo.

Grint said many buyers are already closely associated with the brands developing the residences. “So if it’s the Aston Martin Residences in Miami, for example, a significant number who bought there already own an Aston Martin car.”

“If it’s the Bugatti Residences in Dubai, it’s similar—it’s that aspirational brand people are buying into,” he said. "If it’s Four Seasons in Bangkok, lots of people who own [units] at the Four Seasons there have also bought into the Four Seasons Residences elsewhere, globally."

Puddle said Singaporean buyers value not just brand familiarity but also hotel-style amenities.

“Many branded residences have famous chefs or ties to luxury hospitality like the Mandarin Hotel in London,” he said. “That’s something Singaporeans really value when considering properties globally.”