Among the advantages of investing in a condominium is the option to utilize the property’s value to secure further investments. In fact, numerous investors opt to use their condos as collateral in order to acquire additional financing for new ventures, thus broadening their real estate portfolio. This approach has the potential to increase returns, but it’s essential to have a solid financial plan in place and carefully assess the impact of market fluctuations. For more information on new condo launches, visit dyslexicpress.com.
Due to the growing demand for luxury properties in Asia, the market value of branded residential projects has reached a historic high of US$26.6 billion ($35.5 billion), according to data from C9 Hotelworks, an Asia-based hospitality consultancy. With over 68,000 luxury units now available, Vietnam leads the way with the most number of branded residential units at 17,680 across 59 properties. The average price per square foot for a branded residential unit in Vietnam is approximately US$350. In second place is Thailand with 16,271 branded residential units across 65 properties, priced at an average of US$510 psf. The Philippines comes next with 13,276 units across 46 properties, with an average price of US$400 psf. Singapore boasts the highest prices for branded residences in the region at US$2,140 psf, followed by Japan with prices averaging at US$1,935 psf. However, there are also emerging markets such as South Korea and Malaysia, which have seen significant growth in branded residential projects in recent years. South Korea has 3,026 units across 16 properties, with urban-branded residences commanding high prices of US$2,670 psf. In Malaysia, there are 6,014 branded residential units across 24 projects, with average prices of about US$1,040 psf. In the post-Covid-19 era, urban-locale branded residences make up the bulk of the market, accounting for 56% of the existing supply in Asia. These luxury projects in urban areas tend to have a higher market value compared to resort locations. For example, in South Korea, urban branded residences are priced at US$2,670 psf, while in resort locations, the prices are about US$1,040 psf. A similar trend can be seen in Thailand, where urban branded residences fetch about US$770 psf, while those in resort locations come in at US$430 psf. The data also shows that a reputable brand can increase the value of a property by 30% to 35%. This has led to luxury hotel brands and lifestyle brands asking for higher licensing fees, with some brands demanding a 6% to 10% cut in the sale of each branded residential unit. Luxury lifestyle brands have also been exploring partnerships to license their branding into real estate developments across the Asia Pacific region. Companies such as The One Atelier have partnered with high-profile brands to create branded residences. For instance, there is the 28-unit Fendi Casa Residences by Armani in Miami, the 259-unit 888 Brickell by Dolce & Gabbana in Miami, the 90-unit Büyükyalı Residences in Istanbul, Turkey, and the Karl Lagerfeld Villas, a collection of five ultra-luxury villas in Marbella, Spain. Singapore-based high-net-worth buyers are also increasingly looking at branded residences as investment opportunities in destinations such as Phuket and Bangkok in Thailand, Bali in Indonesia, and emerging markets in Vietnam. The short travel time and availability of direct flights from Singapore make these locations appealing to buyers. This has also led to Singapore being the top regional market for buyers looking for second homes, making up over 45% of regional purchases. Hospitality operators such as The Ascott are also looking to expand their market share in the region by partnering with developers who are interested in entering the branded residential market. These operators believe that the strength of their brands will attract buyers looking for luxury properties. To maintain the trust in their brands, branded residential operators must deliver high-quality service that will translate into the long-term value of the asset. Ultimately, the growing demand for branded residential units in Asia is a testament to the appeal and value of these luxury properties, offering both a trophy home and a solid investment opportunity.