With Thailand accounting for most of the incoming supply expected to be completed by 2025
The growing success of hotel branded residences in Asia is predicted to evolve into a Class A real estate asset, particularly now that the region is accountable for over a third of the global stock, according to the study published by C9 Hotelworks.
Key metrics used in the Asia Hotel Branded Residences Update were based on 79 developments with 16,130 units set to be completed by 2025 across the entire region. As for premier locations for upscale through luxury tier hotel branded properties, Thailand had the highest number of incoming supply at 29 percent, followed by Vietnam and the Philippines.
The research also discovered that Mainland China accounted for more than 57 percent of sold-out projects in first-tier cities, which revealed their considerable presence in luxury branded developments.
Chinese developers have also shifted their focus outside of the country, though they still added some projects locally for yield-oriented buyers. These investors are buoyed by the negative market sentiment in a flat domestic market, which prompted them to search for more lucrative opportunities abroad, armed with a sales pitch strengthened by the presence of global hospitality brands.
The demand for branded residence has become a balance between leisure or resort destinations, which makes up 58 percent of the marketplace, as well as urban locations, which constitutes 42 percent and still rising.
C9’s study also highlighted the fact that luxury property buyers now prefer to purchase ultra-high-end condominiums in central business districts compared to traditional single-family homes in the suburbs because of the rapid urbanisation in Asia.
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