Understanding the regulations and restrictions regarding property ownership in Singapore is crucial for foreign investors. While the purchase of Singapore Condo is generally permissible for foreigners, stricter ownership rules apply to landed properties. The ABSD, set at 20% for first-time property buyers, is an additional cost that foreign buyers must bear. Nevertheless, the stability and growth potential of Singapore’s real estate market remain alluring to foreign investors.
According to data from C9 Hotelworks, an Asia-based hospitality consultancy, the market value of branded residential projects in Asia has reached an all-time high of US$26.6 billion ($35.5 billion). This is due to the availability of over 68,000 luxury units in the region.
Leading the way in branded residential units is Vietnam, with 17,680 across 59 properties. The average price for a branded residential unit in Vietnam is approximately US$350 per square foot (psf). Thailand comes in second with 16,271 units in 65 properties, with most priced at US$510 psf. The Philippines follows with 13,276 units in 46 properties, priced at around US$400 psf.
However, branded residences in Singapore command the highest prices in the region at US$2,140 psf, followed by Japan at US$1,935 psf.
“There are also emerging markets where branded residences have seen rapid growth in recent years, such as South Korea with 3,026 units across 16 properties and Malaysia with 6,014 units in 24 projects,” says Bill Barnett, managing director of C9 Hotelworks.
In the post-Covid-19 era, urban-branded residences make up 56% of the existing supply in Asia. These luxury projects in urban locations dominate the market in terms of value. For example, urban branded residences in South Korea are priced at US$2,670 psf, which is more than half the cost of resort projects, typically priced at US$1,040 psf. Similarly, in Thailand, urban branded residences fetch an average of US$770 psf, while those in resort locations sell for around US$430 psf.
Asia’s branded residential market currently comprises about 12,330 units in 80 developments affiliated with luxury hotel brands, making up 31% of the market supply. “The data shows that a reputable brand can help a property command a premium price of 30% to 35% above the market rate in the country. It also helps the developer gain a larger market share in the country,” says Barnett.
The appeal of top hospitality and lifestyle brands has also led to an increase in licensing fees, with luxury hotel and lifestyle brands now asking for 6% to 10% of the sale of each branded residential unit.
Last August, Thai developer Ananda Development and German automaker Porsche, through its lifestyle brand Porsche Design, launched the ultra-luxury Porsche Design Tower Bangkok in Thonglor. The 22-unit tower, set to be completed in 2028, is the first Porsche residential tower in Asia, following the Porsche Design Tower Miami which debuted a decade ago. Prices for the duplexes and quadplexes range from US$15 million to US$40 million.
Gianfranco Bianchi, general manager of Asia Pacific at The One Atelier, an international design consultancy specialising in branded residences for lifestyle brands, notes that more luxury lifestyle brands have been exploring partnerships to license their branding into real estate developments in the Asia Pacific region in recent years.
The company has worked with several high-profile brands to create branded residences, including the 28-unit Fendi Casa Residences by Armani in Miami, the 259-unit 888 Brickell by Dolce & Gabbana in Miami, the 90-unit Büyükyalı Residences in Istanbul, Turkey and the Karl Lagerfeld Villas, a collection of five ultra-luxury villas in Marbella, Spain.
While hospitality-affiliated branded residences offer top-notch hospitality services, fashion or design-branded residences provide rare trophy homes that embody the luxury aesthetic of these brands. Ananth Ramchandran, head of advisory and strategic transactions in hotels and hospitality (Asia) at CBRE, says cooling measures in the property market have led many high-net-worth Singapore-based buyers to consider trophy assets in nearby regional markets.
“We have seen a significant decrease in the discussion and inquiries from Singapore developers to explore high-end ultra-luxury branded residential projects in Singapore,” he says, adding that developers are now discouraged from entering this segment due to the cooling measures which have dampened foreign buyer demand.
Singapore-based high-net-worth buyers are now increasingly looking at luxury-branded residences in destinations such as Phuket and Bangkok in Thailand, Bali in Indonesia, and emerging markets in Vietnam, which are just a two-hour flight away.
“We have observed an increasing number of regularly scheduled direct flights between Singapore and Phuket, making it a more attractive location for Singapore-based buyers,” says Ramchandran.
Jason Thelen, senior director of sales and marketing at Sudara Residences, a Thai-based developer, adds that “Singapore has quickly become our top regional market for buyers looking for second homes, making up over 45% of regional purchases.”
Hospitality operators like The Ascott are also tapping into the growing demand for branded residences in Asia, says Saowarin Chanprakaisi, vice-president of business development at The Ascott. “We believe that our brands such as Ascott, The Crest Collection and Oakwood Premier have a strong reputation in the market.”
She adds that branded residential operators must build and maintain trust in their brand to ensure that they can deliver the level of service that translates into the long-term value of the asset. As such, The Ascott is looking to expand its market share in the region by partnering with developers to enter the branded residential market.