SINGAPORE – The branded residences market in Asia is soaring as buyers from across the world purchase second homes in “playground cities” or tropical resort destinations. Singapore buyers are leading regional buyers, fuelling the growth of the sector, driven by a domestic environment not conducive to investment in second or third homes given high taxation and stamp duty.
In a marketplace valued at USD 26.6 billion for a supply of 68,001 units, the top regional branded residences destination is Thailand, which commands 23.3% market share, according to the recently released C9 Hotelworks’ Asia Branded Residences Market Update, and where Phuket has the highest number of units at 4,771 across 26 developments.
Following Thailand is the Philippines with 17.3% share and South Korea with 11.6%. Singapore has a branded residences market value of USD 2.78 billion, but has the third highest per square metre value of USD 23,026 psm, behind Niseko and Seoul.
“The value of the Singapore branded residence market is significant,” said Bill Barnett, Managing Director of C9 Hotelworks. “But the headline here is the strong appetite of Singaporean buyers to buy in the region, buoyed by the confidence and service benefits international luxury brands bring to the table, and Thailand is the leading beneficiary.”
The growth is not lost on top regional developers, some of whom are establishing their own brands, such as Hong Kong’s Lang Kwai Fong Group. The conglomerate recently launched their second project in Phuket, the lifestyle-focused award-winning Sudara Residences, following the success of the pioneering exclusive Andara villa development.
“There’s a trust factor here,” said Ananth Ramchandran, Head of Advisory & Strategic Transactions, Hotels and Hospitality – Asia, CBRE. “Singaporeans take a lot of comfort in investing with recognised developers.”
Jason Thelen, Senior Director – Sales and Marketing at Sudara Residences added: “Singapore has quickly become our top regional market for buyers looking for second homes, making up over 45% of regional purchases.”
Ascott’s entry into the branded residences sector has also caught the attention of many industry observers. “Ascott has a long-standing reputation of operating serviced residences, hotels, resorts and co-living properties over the years,” said Saowarin Chanprakaisi, Vice President, Business Development, The Ascott Limited.
“As more developers enter the branded residences space, we look forward to partnering with them to deliver distinctive brand experiences homeowners look for through our Ascott, The Crest Collection, and Oakwood Premier brands.”
Luxury brands outside the international hospitality chains are also eyeing the sector, where automobile brands such as Bentley and luxury fashion brands including Dolce & Gabbana and Fendi Casa are entering the fray.
Brought to Asia by The One Atelier, having launched celebrated projects in Miami and Dubai such as 888 Brickell Dolce & Gabbana, Miami and Casa Canal with interiors by Fendi Casa, Dubai, the company is finding fertile ground in Asia.
Source: C9 Hotelworks