Thailand’s resort island Phuket has become a hot spot for branded residences in Asia-Pacific, a sign of its rising status as a wealth hub in the region, according to a report Monday from Savills.
The presence of branded residences has surged across the Asia-Pacific over the past decade. After Phuket, where there are around 15 residences attached to lifestyle brands and high-end hotels, Bangkok took second place followed by Da Nang and Hoi An in Vietnam and Bali in Indonesia, the real estate firm said.
As a share of global supply, the Asia-Pacific has seen a 216% jump in branded developments in the past 10 years. Across the most active markets in the region, projects in the pipeline are expected to increase the number of branded residences by 72% by 2030.
However, that pipeline varies. Emerging locations such as Da Nang, Busan in South Korea and Niseko in Japan are projected to see their numbers of branded schemes grow by more than 150% in the same time.
In those emerging markets, branded residences tend to fill a need for “high-quality and exclusive” primary homes, as opposed to the second homes and trophy assets that buyers seek in the more resort-oriented locations, Savills said.
“Compared with the Americas and EMEA [Europe, the Middle East and Africa], Asia-Pacific has the most diversity by chain scale within its hotel-branded offering, with schemes across all chain scales from luxury to midscale,” said Kelcie Sellers, associate at Savills World Research. “Unlike its global counterparts, luxury branded schemes account for less than 50% of total supply.”
Indeed, while luxury hotel brands only account for 44% of the total supply across the regions, brands across all levels and price points of hotel chains account for over 80% of total supply, the report found.
“Internationally mobile high-net-worth individuals,” who have flexibility in where they live and work, are expected to keep driving the development and popularity of branded residences, according to Savills.
Domestic demand for luxury branded residences, meanwhile, is likely to grow faster in emerging markets where the quality of existing stock does not meet buyer expectations.
