Branded residences fetch premiums in Asia

Branded residences are attracting significant premiums in Asian cities, with price differentials varying by up to 132 per cent as 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 per cent above non-branded luxury residences, followed by Kuala Lumpur at 69 per cent, Manila at 36 per cent and Phuket at per cent. 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.

Speaking about the report, Shishir Baijal, Chairman and Managing Director, Knight Frank India, says, “Branded residences cater to the aspirations of the discerning home-buyer who looks far beyond the functional quotient of the residential property. Such home-buyers look for unparalleled exclusivity and bespoke amenities and services. Characterised by themes such as high fashion and luxury hospitality, this segment has made significant inroads in cities like Mumbai, Pune, Bengaluru and the NCR. With more and more buyers being discerning about the location, neighbourhood and gentry, branded residences have definitely carved a niche for themselves in India and will continue to have their specific buyers.”

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.

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