The rise of ultra-luxury branded residences – Thailand and Vietnam are catching up with Dubai, Miami and New York for fancy hotel-managed apartments, as five-star living becomes a global trend
- InterContinental Residences Halong Bay and Four Seasons Banyan Tree are among the new hotel-branded properties bringing luxury living to the Asia-Pacific
- Second only to the US globally, Thailand is an especially popular choice for Hong Kong buyers, touting the Angsana Beachfront Residences and Phuket’s Banyan Tree Grand Residences
This season’s big luxury housing trend? Branded residences continue to gain favour with developers and buyers, with the sector growing by 230 per cent over the past decade.
The numbers are all there. Today, there are 580 schemes globally, operating almost 100,000 units between them. The market is forecast to exceed more than 900 schemes by 2026, doubling the current supply, according to research by Savills.
More brands are also competing in this space, rising from 69 in 2011, to 133 in 2021.
North America, the birthplace of branded residences, still accounts for most of the global supply – with almost 200 schemes, it has more than the next seven largest country-level markets combined.
However, other regions, particularly Asia-Pacific and the Middle East, are gaining ground. Thailand and the United Arab Emirates are the second- and third-largest country markets in Savills’ research, with 42 and 39 completed schemes respectively.
Nipping at the heels of table-leading cities Dubai, Miami and New York, Phuket and Bangkok follow in the fourth and fifth spots respectively, with Da Nang, Vietnam, rising up the ranks.
Stuart Reading, senior vice-president of group property development for Banyan Tree Group, whose portfolio includes Angsana Beachfront Residences and Banyan Tree Grand Residences in Phuket, says Thailand has always been popular, especially among buyers from Hong Kong. “The pandemic has resulted in people rethinking their lifestyle and work preferences, such as living in less densely populated locations and the ability to work from home,” he said.
“With rising inflation, financial markets at record peaks, the weaker Thai baht and the quality of life on offer, real estate in Phuket remains a very attractive and affordable option compared to the high prices and cost of living in cities such as Hong Kong.”
Riyan Itani, head of global residential development consultancy at Savills, says existing hoteliers are developing new residential brand concepts and bolstering their residential development teams.