Fashion and auto brands drive Asia’s $26.6 billion branded residences boom, with Bangkok emerging as a global playground city.
Ultra-luxury global consumer brands from the fashion and auto sectors are moving into the real estate space in Asia as a natural extension of their powerful brand-led businesses – resetting the map of international buyers who are crossing borders like never before.
The surge in investment from overseas buyers, who can be more accurately defined as collectors of limited-edition assets, is focused on global playgrounds, which Bangkok has been identified as the latest member – alongside Dubai and Miami – with the recent unveiling of the Porsche Design Tower by Ananda Development.
The C9 Hotelworks’ Asia Branded Residences Report further unveiled the total supply value of developments in the region topping a staggering USD 26.6 billion, a number led by Thailand destinations Phuket and Bangkok.
In a space traditionally dominated by hotel brands the branded residences market is exploding with a proliferation of luxury lifestyle brands creating what Chanond Ruangkritya, CEO & President of Ananda Development, called “a massive influx of international buyers” in relation to Bangkok over the last three years, establishing it as a “playground city” like Miami or Dubai. “Porsche has a cult-like following and this is an international community seeking limited-edition products,” he added.
C9’s Bill Barnett said: “It is a dawn of the new age of the collector as the sector moves from hospitality to brand. Fashion and auto brands are well equipped with how to handle luxury customers as they are used to limited releases sold at premiums, exclusive items. Brand loyal customers cross borders.”
C9’s research revealed that development of branded residences in Asia has surged in the last four years, with double-digit growth of 11% per year with 180 projects comprising 43,100 units expected to be completed from 2025 onwards, nearly doubling the existing supply of branded residences in the region.
Thailand has the largest supply of branded residences in Asia (in terms of value), followed by the Philippines and South Korea. The largest pipeline of new projects however, is in Vietnam. In terms of cities, Phuket is leading the way, followed by Manila and Bangkok.
Gianfranco Bianchi, General Manager – Asia Pacific at The One Atelier added that he was seeing a strong interest in non-hospitality brands with buyers looking for one-of-a-kind products that offered an experience synonymous with that brand.
However, hoteliers feel that the service offered by hospitality is still a compelling draw.
Leanne Reddie, Chief Development Officer for The Chedi Hotels & Resorts, said: “People still want highly personalized service, this is a key value proposition.” While Penny Trinh, Vice President – Mixed-Use Development at Marriott International was bullish on Marriott moving into standalone residents. The Ascott Limited are also keen on branded residences as they look to deploy their luxury brands in the sector, said Saowarin Chanprakaisi, Vice President – Business Development for The Ascott Limited.