APAC branded residence growth outperforms global markets

The region could potentially go head to head with North America over the next decade.

According to a recent report by Savills, market share is gradually shifting to Asia Pacific where the number of branded residences is expected to increase by 180% over the forecast period until 2031.

This growth is outpacing the wider Americas region by 20 to 40 percentage points, with the Americas accounting for more than 50% of branded residences globally until 2015.

Here’s more from Savills:

With Vietnam, Thailand and India ranked globally in the top ten and collectively exhibiting almost 200% growth over the forecast period, the region has considerable potential to rival North America over the next 10 to 12 years based on the extrapolated growth trajectory, despite growing market share from the Middle East and Africa.

While Asia Pacific accounted for almost one-quarter of branded residences globally from 2018 to 2020, it subsequently began conceding market share to the Middle East and Africa and, more moderately, to Europe. Notwithstanding this, markets such as Japan, South Korea and Australia are exhibiting potential to recover much of that market share.

Meanwhile, Indonesia and Malaysia are exhibiting stagnant growth from an otherwise historical contribution to the region, and if growth returns to these two markets, then this would further bolster growth in the region.

The potential for Asia Pacific is amplified by the expected growth in wealth as the region is forecast to grow faster than any other region in the world. Once again contending with North America, the rapid rise of wealth in Asia signals a fundamental shift in financial power. With three of the top ten countries for wealth inflow, Singapore, Japan and Australia are markets that may be poised for further development of branded residences, with the former two representing popular destinations for Asian nationals.