Branded Residences are attracting significant premiums in Asian cities, with price defferentials varying by up to 132% compared to generic luxury developments.
A Branded Residence is any residential development where the developer partners with a premium brand to create a guarantee of quality and the promise of an exceptional living experience.
The cache surrounding these residences is “similar to having a starchitect (famous architect) behind a property,” said chief executive of real estate appraisal firm Miller Samuel, Jonathan Miller “It’s another form of luxury branding, and you can command higher prices by having this.”
The concept of Branded Residences dates all the way back to the 1920s, when the Sherry-Netherland Hotel on Fifth Avenue in New York City began offering serviced apartments for purchase alongside its prestigious hotel business. Since then, Branded Residences have become increasingly popular around the world, and have catered to the vast amount of globally mobile and affluent individuals.
The number of Branded Residences has skyrocketed to 170% worldwide, prompting an extraordinary decade of growth for the sector.
More than 420 luxury Branded Residences have dotted the globe to date, with many more being developed. Their promise of personalized service, various lifestyle benefits and extensive amenities – paired with the backing of internationally-recognized hospitality brands – makes their allure irresistible to the ultra-Wealthly.
BRANDED RESIDENCES AT A GLANCE
Source Savills Branded Residences Report 2020 then:
- 517 Schemes globally
- 76,000 residences
- The Branded Residences sector has grown 170% over the past 10 years
- 2020 another recort year with over 100 additional schemes
- 63% in an urban location
- Marriot is the largest player with 21% of schemes
- The US is home to 183 branded schemes, the most globally
- Top 3 cities by schemes
- Miami (32)
- Dubai (29)
- New York ( 25)
- By region, Middle East & North Africa is expected to see the largest growthe, with 156%
It is another form of luxury branding, and you can command higher prices by having this.
Historically, the branded residential sector has been focused in North America, which housed aver half of all schemes until 2015 and currently accounts for 40% of completed schemes. However, the pipeline indicates brands are continuing to expand geographically, and are specifically driven by growth in Asia Pacific. Today, Asia Pacific accounts for the largest share of pipeline schemes (25%. followed by the Middle East & North Africa (20%), and Europe (17%). compared to 16% in North America.
The cities with the most schemes today are Miami (32), Dubai (29) and New York (25). Dubai is forecast to become the largest city based on pipeline schemes.
Property markets have been influenced tremendously by brand involvement, and, compared to non-branded luxury offerings in similar areas, price premiums have increased dramatically.
Most importantly, because they are often in demand, Branded Residences have proven to retain their value. Thanks to the reliable, consistent and extensive operating data available, the sector’s performance can be benchmarked, offering peace of mind to buyers.
Offering the level of care and attention ultra-high net worth buyers require those with USD$30 million or morel, coupled with stellar five-star services, buyers are assured a seamless transition to their customary lavish lifestyles. Everything from concierge facilities to housekeeping to room service is of the utmost quality, attracting luxury-conscious consumers to Branded Residences.
The backbone of the sector is still the well-established luxury market, but other chain scales are on the rise. The Branded Residential sector continues to be dominated by luxury brands. and luxury hotelier brands account for 77% of complete schemes.
New non-hotelier brands have also entered the market. Famous names from the world of art, fashion, design, cars and even individual celebrities are partnering with Branded Residences. Opportunity for these brands to expand their brand profile, diversify their business is now afforded thanks to Branded Residences.
The latest openings highlight how diversified the sector has become, and, how brands are quickly seizing the opportunity offered. Proven to be a successful formula, brands can confidently enter new territories. We expect this trend to continue.
2 branded residences at Vietnam
Masterise Group is currently the first developer in Vietnam with 2 real estate branded residences projects:
- Grand Marina Saigon – No. 2 Ton Duc Thang, Ben Nghe Ward, District 1, Ho Chi Minh City
- One Central Saigon – 01 Pham Ngu Lao, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City
Currently, both these projects are accepting reservations with the project selling price from 15,000 usd – 25,000 usd / m2. Interested customers can contact the Masterise Group sales department for more information as well as support and advice.