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Branded Residences Growth in Asia Surges as Second-Home Buyers Flee Domestic Market

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Reading Time: 2 minutes

The branded residences market in Asia is soaring as buyers from across the world purchase second homes in “playground cities” or tropical resort destinations. Singapore buyers are leading regional buyers, fuelling the growth of the sector, driven by a domestic environment not conducive to investment in second or third homes given high taxation and stamp duty.

In a marketplace valued at US$26.6 billion for a supply of 68,001 units, the top regional branded residences destination is Thailand, which commands 23.3 percent market share, according to the recently released C9 Hotelworks’ Asia Branded Residences Market Update, and where Phuket has the highest number of units at 4,771 across 26 developments.

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Following Thailand is the Philippines with 17.3 percent share and South Korea with 11.6 percent. Singapore has a branded residences market value of US$2.78 billion, but has the third highest per square metre value of US$23,026 psm, behind Niseko and Seoul.

“The value of the Singapore branded residence market is significant,” said Bill Barnett, Managing Director of C9 Hotelworks. “But the headline here is the strong appetite of Singaporean buyers to buy in the region, buoyed by the confidence and service benefits international luxury brands bring to the table, and Thailand is the leading beneficiary.”

The growth is not lost on top regional developers, some of whom are establishing their own brands, such as Hong Kong’s Lang Kwai Fong Group. The conglomerate recently launched their second project in Phuket, the lifestyle-focused award-winning Sudara Residences, following the success of the pioneering exclusive Andara villa development.

“There’s a trust factor here,” said Ananth Ramchandran, Head of Advisory & Strategic Transactions, Hotels and Hospitality – Asia, CBRE. “Singaporeans take a lot of comfort in investing with recognised developers.”

Jason Thelen, Senior Director – Sales and Marketing at Sudara Residences added: “Singapore has quickly become our top regional market for buyers looking for second homes, making up over 45 percent of regional purchases.”

Ascott’s entry into the branded residences sector has also caught the attention of many industry observers. “Ascott has a long-standing reputation of operating serviced residences, hotels, resorts and co-living properties over the years,” said Saowarin Chanprakaisi, Vice President, Business Development, The Ascott Limited.

“As more developers enter the branded residences space, we look forward to partnering with them to deliver distinctive brand experiences homeowners look for through our Ascott, The Crest Collection, and Oakwood Premier brands.”

Luxury brands outside the international hospitality chains are also eyeing the sector, where automobile brands such as Bentley and luxury fashion brands including Dolce & Gabbana and Fendi Casa are entering the fray.

Brought to Asia by The One Atelier, having launched celebrated projects in Miami and Dubai such as 888 Brickell Dolce & Gabbana, Miami and Casa Canal with interiors by Fendi Casa, Dubai, the company is finding fertile ground in Asia.

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Booming Demand for Luxury Branded Residences Boosts Sales at Meliá Phuket Karon Residences

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Reading Time: 3 minutes
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Phuket is booming. Thailand’s leading resort island has long been a dream destination for the world’s travellers, 8.4 million of whom flocked to its shores last year. Now, this idyllic destination’s popularity is also driving rising interest from affluent investors seeking new lifestyles in paradise, with a surge in demand for internationally-branded luxury residences in the island’s idyllic locations, especially along the stunning sunset coast.

 

According to a recent report by C9 Hotelworks, the total value of new branded residence supply in Phuket has now reached THB 80 billion (approx. USD 2.3 billion) – a historical high. In one of the island’s most eye-catching projects, Mishari Group Ltd, the prestigious international property developer, has partnered with Meliá Hotels International, the highly acclaimed European hotel group, to create Meliá Phuket Karon Residences, a breath-taking new hillside project which comprises 68 elegantly-appointed residences and shares the five-star facilities of the neighbouring 138-key Meliá Phuket Karon Hotel. The total value is THB 4.5 billion.

 

Eco-Sensitive Luxury Meets Post-Pandemic Lifestyle Trends

Nestled in 6.4 hectares of lush jungle, overlooking Karon Beach – Phuket’s longest stretch of golden sand – and the turquoise waters of the Andaman Sea, with a protected nature reserve covering 50% of the total area, Meliá Phuket Karon Residences is perfectly suited to the emerging lifestyle trends of the post-pandemic era. Empowered by a rise in global and digital connectivity and the “work-from-anywhere” movement, many urbanites are now seeking new lives away from the city, so this low-density, sustainable design will attract a new generation of eco-conscious professionals. C9 Hotelworks notes that the Phuket branded residences market has experienced a significant uptick in construction since the end of the pandemic. A total of 2,102 new units were added to the market from 2021 to 2023 – a 179 percent jump compared to the previous three-year period.

 

Strategic Blend of Premium Condos and Ultra-Luxury Pool Villas

Another factor that puts Meliá Phuket Karon Residences at the forefront of Phuket’s real estate boom is the project’s strategic combination of high-end accommodation types. The development features a total of 52 one- and two-bedroom condominium-style Ocean View Residences (56 to 88.5 square metres) and 16 three- and four-bedroom Ocean View Pool Villas (320 to 490 square metres), each of which features an elevated 9.5-metre-long outdoor infinity pool.

 

Condominiums, which form 59% of the total Phuket market, have recorded an average unit price point of THB 11.7 million, while the median price for villas is THB 120 million. Despite villas representing only 6 percent of the available supply, they account for 41 percent of the total value, according to C9 Hotelworks. Meliá Phuket Karon Residences spans both of these important segments, allowing it to cater to the needs of premium and ultra-premium investors alike.

 

Five-Star Services Attract Strong Interest from Savvy Investors

All owners at Meliá Phuket Karon Residences will enjoy a wealth of five-star services managed by Meliá Hotels International, including an 800-square metre forest spa, bars and restaurants, a beach club, and a nature park. Karon Beach is just five minutes away by a dedicated shuttle service, and residents are offered the use of a 70-foot, four-bed Sunseeker boat with a capacity for 20 to 30 people.

 

With such strong demand for branded residences in Phuket, it is little surprise that international interest in Meliá Phuket Karon Residences has been high. As of May 2024, 60 percent of the condos and pool villas have already been pre-sold. A Meliá-managed rental pool will be available for residence owners. Development is already well underway; all units are expected to be fully completed by March 2025. Prices at Meliá Phuket Karon Residences start from THB 8.5 million (S$316,266).