What is the real estate equivalent to Hermès’ Kelly, Fendi’s Baguette, Chanel’s Classic Flap, Dior’s Lady Dior, and Gucci’s Jackie? While some buyers invest in these designer classics with a nod to Carrie Bradshaw’s famous quote, “I like my money right where I can see it…hanging in my closet,” others are turning to a style statement of a different kind: designer homes.
The global branded residence market has grown 176% in the last decade, and Asia is at the forefront of this growth. Per Robb Report Thailand, there’s US$30.7 Billion up for grabs, with Thailand capturing the lion’s share in the region. But what’s behind this demand, and what does its power players have to say?
Unlocking New Doors and Attracting a Broader Audience
Branded residences have typically catered to an ultra-luxury segment, i.e. UHNWI (ultra high net-worth individuals), but developers are exploring ways to extend this concept. But does this mean these residences are becoming “mass market”? Not quite. “Mid-tier hospitality brands are entering the space with more accessible price points and more flexible brand requirements, which may suit the risk appetite of certain developers,” explains Kai Siang Cho, Senior Vice President, Advisory and Asset Management, Hotels & Hospitality Group at global real estate firm Jones Lang LaSalle.
Meanwhile, developers are taking a modular approach in configurations, specifications, and ownership models to make it accessible to a broader audience. “[Think] smaller units designed for a specific demand, like young professionals, or mixed-use developments incorporating different price tiers within the same complex. [Alternatively, a fractional ownership model] provides partial access to luxury properties. This strategic shift recognises the growing affluent middle class, particularly in emerging markets, who desire the branded lifestyle but at more attainable price points.”
Ultimately, brand names hold their weight in gold, and buyers are looking for hotel-like experiences (and amenities) in their future homes. “Affluent buyers are increasingly seeking a luxury resort-style living experience, where they own a private home that blends five-star hospitality with private ownership. [It’s not only] a place to stay, but also to acquire these branded residences as collectible properties, recognising their strong long-term value,” shares Micah Tamthai, Chief Operating Officer of Minor Lifestyle and Real Estate, whose company owns the Anantara and Four Seasons hotel brands in Asia.
Adelina Wong Ettelson, Global Head of Residences Marketing, Mandarin Oriental Hotel Group, shares this same sentiment, but also acknowledges how demographics have evolved, necessitating a different approach that straddles design and function. “Today’s buyers are well-traveled, design-conscious, and increasingly multigenerational; they’re looking for turnkey residences that offer an essence of the destination, a focus on wellness, and seamless lifestyle. Many view a Mandarin Oriental residence not just as a home, but as an extension of the brand experience they know and trust.“
Seeking the City or the Sea?
The branded residence market is also segmented based on resort and urban properties. When asked whether buyers are flocking to one or the other, Cho explains that it is dependent on the individual buyers’ investment goals. “Urban properties attract those seeking primary or secondary homes in prime city locations like Bangkok or Shanghai. These investments offer security, stability, and alignment with the lifestyle represented by the brand.” Resort properties are more nuanced, and offer a dual benefit of being both a vacation home and an investment opportunity that subsidise ownership costs. “These developments typically feature structured rental programs with capital appreciation potential. Most resort property buyers opt to place units in rental pools since permanent residence demand is limited in these locations.”
How Luxury Fashion and Hospitality Collaborations Are Impacting Branded Residences
We’ve seen how these collaborations have made their mark on hotel brands, but what does this look like when a buyer is scouting for a new home? “Fashion houses offer powerful brand recognition and distinctive design aesthetics that create more design-forward properties with unique identities,” Cho says. He predicts that these collaborations will grow the branded residence sector but not necessarily overtake established hotel brands as these partnerships can result in challenges from an operational perspective, such as sales support and service delivery. “Collaborations with hotel operators can address these concerns, but the economies must make sense — especially for co-branded products. Developers need to charge higher premiums to cover fees for both brands, and the market must have sufficient depth to absorb this premium-priced supply.”
Cultural Sensibilities Drive Future Market Potential
According to Real Estate Asia, the region’s branded residence market grew 10% annually in the past five years, with 57% of projects co-located with hotels. It’s not only new buyers that are behind this demand, but also hotel groups and developers being strategic in identifying future market potential.
“Cultural authenticity is central to our approach. We maximise the unique charm of each destination in both our resorts and residences to enhance the experiences of our owners, [and] each property is designed to reflect its strong sense of local identity,” says Tamthai of Anantara’s residences. These cultural sensibilities aren’t only used to scout new locations, but are also applied to design elements. For example, at Mandarin Oriental’s Da Nang property, the team worked closely with a Master Feng Shui expert to ensure the site and design align with principles of harmony and prosperity, creating a true sanctuary for future residents. “Across all of our projects, we collaborate with local artisans, architects, and cultural advisors to thoughtfully integrate regional design cues and spiritual elements. This approach allows us to create residences that are not only luxurious, but also deeply connected to the place and the people they serve,” explains Ettelson.
On the developer side, one notable observation is multi-generational travel, which is common (and growing) among Asian families. “We see families preferring larger suite type accommodation during their vacations. This trend is particularly strong in resort destinations where accommodations [consist of] spacious layouts, multiple bedrooms, and diverse amenities.” adds Cho. “From a developer perspective, [this presents an opportunity for] branded residential products…either as secondary holiday homes or as an investment product with a rental programme in place.”
Levelling the Branded Residences Playing Field
A recent research report released by global real estate service firm Jones Lang LaSalle reveals that Thailand currently represents 23% of Asia Pacific’s total existing supply of branded residences as of Q1 2024, followed by China and Indonesia. However, by 2026 and beyond, we expect to see other countries catch up — specifically Vietnam with a projected 46% of future supply. However, it’s not without its challenges. “Vietnam is registering a large future supply largely due to projects being delayed or stalled due to a combination of factors ranging from construction delays, delays in obtaining authority approvals, and challenges in obtaining project financing.”
Turning Pipe Dreams Into Pipelines
At this year’s Branded Residences Forum Asia, it was revealed that from 2025 onwards, the existing supply of branded residences in the region will double. So what are brands doing to stand out in this competitive space, and what trends can we expect to see?
Technology and sustainability are two common threads that Anantara residences are building into their pipeline of new properties. “Branded residences are a key pillar of Minor International’s growth strategy, reflecting the increasing importance of experience-led living and value creation through luxury residential offerings. Future developments will continue to focus on sustainability, deeper wellness integration, and advanced digital concierge platforms. These innovations will ensure that Anantara continues to redefine what it means to live in a luxury resort environment, offering unparalleled comfort, convenience, and a profound connection to place,” shares Tamthai.
Meanwhile, Mandarin Oriental will continue to expand its global portfolio, with 12 properties currently operating, 20 under development, and four in Southeast Asia. Expanding with intention is at the core of this growth, adds Ettelson. “We’re growing with purpose and care, and plan to reach 50 residences by 2033. We’re focused on destinations that reflect who we are as a brand: places that value culture, design, and a true sense of luxury. Every residence reflects our Asian heritage and a deep commitment to hospitality, thoughtfully designed to bring our legendary service into everyday life.”
