Branded residences gaining stronger foothold in Asia Pacific: Savills
Around 27 percent or a majority of branded residential projects under construction globally are now located in Asia Pacific, according to a new Savills report.
The region currently holds a total of 120 completed, operational branded residential schemes. China and Thailand account for seven percent and six percent of schemes globally, making them the world’s second and third biggest country markets, respectively.
The US remains the largest single country market, with 130 schemes or 32 percent of the global total.
New York, Miami, Dubai and Bangkok are the world’s biggest urban markets for branded residential schemes with each having at least 15 projects.
Led by Marriot International brands, hoteliers currently compose 85 percent of all schemes, but non-hotel brands are gaining ground. Operating in 34 countries, YOO Worldwide is currently the single biggest non-hotel brand by number of schemes (currently at 52) and one of the top three brands in Asia Pacific alongside Shangri La and Banyan Tree.
“We see huge opportunities for growth in Asia. We really feel the market is ready for our unique brand of design,” said James Snelgar, partner and head of business development of YOO Worldwide, in a statement.
Established in 1999 by property entrepreneuer John Hitchcox and designer Philippe Starck, YOO works with a team of celebrity designers, including Jade Jagger and Kelly Hoppen, to create distinctive designer-branded residences that bring visibility to projects.
Along with the United Arab Emirates and Mexico, Indonesia expects the largest pipeline of branded residential projects outside the US, tipping off emerging markets’ appetite for branded prestige.
“Branded residences can offer a solution to residents in emerging markets with immature residential property sectors. They offer comfort, security and familiarity,” Savills noted in its report.
On the flipside, brands face diminishing premiums in saturated markets, with recent evidence from New York suggesting that branded schemes are actually trading at a discount to non-branded stock.
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