Why appeal of upscale branded residences remains undiminished amid the coronavirus pandemic

With the segment recording 170 per cent growth in the last 10 years, top brands like Versace, Armani and Porsche have lent their names to exclusive projects

In Beijing, such exclusive developments command an average premium of at least 40 per cent, and around 30 per cent in Shanghai

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Guests visit a show suite of Waldorf Astoria’s The Towers in New York. The luxury condominium residences are expected to be completed in 2022. Photo: Xinhua

Published: 7:30am, 18 Nov 2020Updated: 7:48am, 18 Nov 2020

Demand for branded residential property will pick up after the temporary setback from the Covid-19 pandemic as investors will be willing to pay top dollar for such developments because they offer exclusivity and privacy, two things that matter a lot to the rich, say analysts.

And there is a reason for such optimism – the segment which typically involve a partnership between a developer and a luxury hotel brand or a prestigious brand – has registered 170 per cent growth over the last 10 years. And with its popularity taking off in recent years, high-end fashion labels such as Versace and Armani and luxury carmaker Porsche have lent their names to exclusive projects.

“It comes as no surprise that the effects of Covid-19 have upset the branded residential sector in a similar fashion to that seen across global real estate markets,” said Riyan Itani, head of international development consultancy at Savills.

“Luxury buyers have understandably been more reluctant to invest in holiday homes and the travel limitations brought on by the pandemic have certainly negatively impacted sales in 2020.”

Since the world’s first branded residence – The Sherry-Netherland, overlooking New York’s Central Park opened its doors in 1927, the number of brands under the category has risen to 130, and is forecast to reach almost 160 by 2025, according to Savills.

The Sherry-Netherland in New York is the world’s first branded residence. Photo: Shutterstock Images