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Branded Residences Fetch Premiums in Asia
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International News
18 Oct 18
clock 18-10-2018
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Branded residences are attracting significant premiums in Asian cities, with price differentials varying by up to 132% compared to generic luxury developments, according to Knight Frank’s latest global publication, Branded Residences Report: 2019.


In the last year, the highest premiums were seen in Bangkok at 132% above non-branded luxury residences, followed by Kuala Lumpur at 69%, Manila at 36% and Phuket at 8%. Price premiums are driven primarily by location and can vary within the same city.

For suppliers (supply side) of branded residences, motivators include market differentiation, brand enhancement and year-round income while for buyers (demand side), these include service, amenities, security and investment yield potential.

In the last year, the highest premiums were seen in Bangkok at 132% above non-branded luxury residences, followed by Kuala Lumpur at 69%, Manila at 36% and Phuket at 8%. Price premiums are driven primarily by location and can vary within the same city. For suppliers (supply side) of branded residences, motivators include market differentiation, brand enhancement and year-round income while for buyers (demand side), these include service, amenities, security and investment yield potential.

Liam Bailey, Global Head of Research at Knight Frank, says, “The branded residences sector globally is growing exponentially. Until the 1980s, branded residences were a scarce commodity. They can now be found in almost every major city and major holiday destinations. “Since a global residential benchmark was set at One Hyde Park, the London market has seen an increase in branded residences at the top end of the market. In Dubai, the emergence of branded residences like The Royal Atlantis mirrors the city’s transition from a holiday destination to a city in which to invest in a more permanent home.

“The Asian market for hotel-branded residences has seen strong growth, particularly in Thailand and Indonesia, with Asia now accounting for an estimated 30% of 400 developments globally. This trend is set to continue.”

Victoria Garrett, Asia Pacific Head of Residential at Knight Frank, says, “Asia’s fast-growing, ultra-wealthy population is fuelling demand for branded residences. These buyers favour branded residences which offer the convenience of high-quality services, delivered by a trusted brand and with the potential for capital appreciation.

“One example of this is One Barangaroo, Crown Residences in Sydney. As Australia’s first fully- integrated, six-star hotel branded residences, the project has received a very warm welcome from both domestic and offshore purchasers since sales commenced. Like The Royal Atlantis, ongoing interest is driven by a combination of its lifestyle offering, design and location.”

Kelvin Yip, Head of Residential Sales and Leasing / Project Marketing at Knight Frank Malaysia, says, “Branded residences are becoming popular in the capital city. The trophy asset, offering a high level of service, facilities and quality, continues to attract affluent end-users and investors. There are some 1,691 units of branded residences completed between 2014 and 1H2018 from schemes that include The Residences @ The St. Regis Kuala Lumpur, Banyan Tree Signatures Pavilion, Four Seasons Private Residences and The Ritz-Carlton Residences.

“More branded residences are scheduled for completion by 2021 and collectively they are expected to contribute more than 2,000 units to the existing stock. Notable upcoming schemes include The RuMa Hotel & Residences, YOO8 serviced by Kempinski at 8 Conlay and SO Sofitel Kuala Lumpur Residences by the Accor Hotels Group.”

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