How Luxury Brands Are Shaping Asia’s Real Estate Market

• Asia’s branded residential market has surged past £20.3 billion($26 billion), with 17,680 luxury units on sale in Vietnam at £275($350) psf.
• Singaporeans are leading the residential market on prices as high as £1,645($2,140) psf. Branded urban residences in Asia show high value and are popular investments.

The Asian region’s branded residential sector marks a major chapter in hitting a touch past the £20.3 billion ($26 billion) milestone as more than 68,000 luxury-filled properties are flooding the marketplace. The experience features the increasing luxury consumer appealing to such a residence provided with a duet of hospitality bigwigs and a big lifestyle marquee. Leading in this explosive sector, Vietnam has emerged as the premier hotbed of branded residential products in Asia.

Vietnam Leads the Pack with Affordable Luxury

Vietnam has broken all the ceilings in Asian-branded residences with 17,680 units nestled across 59 properties. Affordably priced luxury units, at an average of £275($350) per square foot (psf), strike one as the best choice; this makes Vietnam almost ideal for an investor hunting for luxury living and competitive pricing.

Thailand is not that behind; it has on offer 16,271 branded residential units over 65 developments, which it sells at£400 ($510) psf. The Philippines comes next in rank with 13,276 units in 46 properties, priced at £315 ($400) psf.

Singapore’s Equally Exorbitant Prices

While Vietnam and Thailand dabble with more accessible luxury, Singapore has come of age with Asia’s highest prices. Branded residential properties in the city-state typically command a whopping£1,645 ( $2,140) per square foot, making them some of the most exclusive, expensive and upscale in all of Asia. Following Singapore, Japan has average units priced at £1,490 ($1,935) psf, showing the prevalence of premium-estate recognition in that country.

Emerging Players

As the overarching hot regions are being saturated, South Korea and Malaysia are next in line to expand their branded residential portfolios. South Korea now boasts 3,026 branded units across 16 different properties, with urban products priced at £2,055($2,670) psf, which is more than double the cost of resort-branded residences selling at an average price of£800 ($1,040) psf.

Nestled between emerald mountains and the azure sea, Malaysia is forging ahead with 6,014 branded residential units spread across 24 schemes attracting a luxury former pool of buyers.

Urban Luxury Beats Resorts

Urban branded residences hold the edge in a post-pandemic setting by representing 56% of the entire market supply. These urban-based properties have large price tags compared to the resort affiliates.

Take an example from Thailand; a branded residence within the city sells for nearly £590 ($770) per square foot. This is 80% higher than the average that the resort-brand residence fetches at £330 ($430) psf. This is a request for some prime central properties that are spacious, convenient, and prestigious.

Brands Are Using the Luxury Driver

A luxury or hotel lifestyle brand truly adds value to its category. Hotel-branded residences now make up 31% of the market, having 12,330 units spread over 80 developments. These properties usually sell for 30%–35% more when compared to some non-branded properties,” said Bill Barnett, managing director of C9 Hotelworks.

Currently, several luxury hotel brands in the US have negotiated for significantly higher licensing fees, with the developer pocketing 6% to 10% while the brand takes a single-digit percentage. This shows the shift in demand for brands in luxury real estate as they become a key determinant of brand-name profit.

High-Profile Collaborations Capture the Limelight

The upsurge in interest in branded residences has seen big-name collaborations at the forefront. In August 2024, Ananda Development of Thailand joined Porsche to launch the Porsche Design Tower Bangkok, which marks the automotive giant entering into the branded residential housing of Asia, ten years after it was done in Miami. With an anticipated completion date in 2028, there are 22 luxurious condos in the tower, including 2-storey duplexes and 4-storey quadplexes, with selected prices ranging between £11.8 million ($15 million) and £31.5 million ($40 million).

Fashion and Lifestyle Brands Enter the Market

Among the heavyweights within fashion and lifestyle branding entering the arena of branded residences, fashion houses of the highest luxury include the One Atelier. It has been collaborating with other distinguished fashion brands across different parts of the globe to provide exclusive residential properties. Their portfolio constitutes:

• Fendi Casa Residences by Armani in Miami (27 units)
• 888 Brickell Avenue by Dolce & Gabbana in Miami (259 units)
• Büyükyalı Residences in Istanbul, Turkey (59 units)
• Karl Lagerfeld Villas in Marbella, Spain (5 ultra-luxury villas)

Gianfranco Bianchi, general manager of Asia-Pacific at The One Atelier, considers these real estate projects studied to be more than just great homes but “trophy assets” for further consideration, thus demonstrating the brand’s luxury aesthetic.

Singaporean Buyers Pilot Their Way Towards Regional Luxury Hubs

Since the latest property cooling measures diminished local purchase pressures, high-net-worth Singaporeans are showing faster interest from regional markets in search of second homes. Places such as Phuket, Bangkok, Bali, and Vietnam are other appealing destinations due to luxury offerings within a travel radius of Singapore.

Increased airline connectivity is further propelling the demand in these regions. Ananth Ramchandran, executive director of advisory and strategic transactions at CBRE Hotels and Hospitality Asia, said that around 150 weekly flights are operated between Singapore and Phuket by airlines such as SIA, Scoot, AirAsia, and Jetstar, which highly appeal to wealthy Singaporean buyers.

Nesting of Brands in the Hospitality Market

Luxurious hotel brands are breaking into branded residences. One leading serviced apartment operator, Ascott, has been active in expanding into this sector. Vice-President for Business Development, Saowarin Chanprakaisi, says the emotional attachment that buyers have towards a branded hospitality company gives them a special competitive edge.

“So far, we’ve seen an increasing interest from developers to have us as partners to make this branded residential market because they realise the long-term value that our brand brings,” she declared.

Branded Residences: The Future of Luxury Living

There is no doubt that the branded residential sector in Asia is prospering. There is a superposition of luxury brands, lifestyle luxuries, and collaborations, turning luxury real estate into a true investment opportunity. Therefore, with buyers chasing an ever-more-exclusive, service-orientated lifestyle, the concept of branded residences is here to stay and is operating at the lux end of the property market in Asia as standalone units that present actual homes but come imperatively with an aspiration of an existence.