Driving sales: Thai real estate shifts gears with fashion and wellness brands

Thailand’s real estate developers are expanding beyond familiar hotel brands into the realms of iconic automotive, fashion, and wellness labels, as they seek identities that resonate with luxury property buyers.

Listed property group Ananda made global headlines with their ultra-luxury offering, Porsche Design Tower Bangkok, with eye-catching prices reaching 1 million Thai baht per square metre (approximately US$33,000 per square metre). The absolute unit pricing of this offering ranges from 495 million to 1.3 billion Thai baht (about US$15 million to US$40 million), marking a new high in the market.

Thailand is now the leader in Asia for branded real estate, with 106 billion Thai baht in properties for sale or under development, according to a newly released report by hospitality consulting group C9 Hotelworks, titled Thailand Branded Residences Market Review 2024.

Power behind the brand

Ananda CEO Chanond Ruangkritya explained the power of branded real estate, especially the motive of attaching a big name such as Porsche.

“Thais understand how brands can drive premium pricing. We chose Porsche, a brand that ignites passion among our high-net-worth buyers, to differentiate ourselves in a competitive marketplace. For us, it’s about pushing prices and standing out from the crowd.”

C9’s research highlights that in 2020, Aman Nai Lert Bangkok set a new standard for ultra-luxury branded residences, establishing itself as the premier product in the market. The project was able to double median market prices at the time, attracting a solid base of foreign buyers.

Explosive sector growth

Since then, Thailand’s branded residences market has surged. The country now boasts 46 branded real estate projects, comprising 10,081 units. Of these, 67% are located in resort destinations, with Phuket leading the way at 41%, while 33% are in Bangkok.

The median price in Bangkok is 279,600 Thai baht per square metre, significantly higher than in resort areas, reflecting the capital’s land premium.

Changing tides: Targeting overseas buyers

As the branded real estate landscape evolves, more developers are seeking the right mix of brands and products to attract buyers, particularly in Bangkok. With tightening credit conditions for domestic buyers, a sluggish economy, and an oversupply of completed units from large real estate groups, developers are increasingly targeting overseas buyers.

This shift is fueling the need for differentiation beyond hotel-branded properties. Today, we are seeing an expanded brand landscape across Thailand’s real estate market.

New entries include the luxury lifestyle community Tri Vananda in Phuket, which has partnered with global wellness brand La Prairie, and Gardens of Eden, an integrated project that features award-winning architect Martin Palleros, all to gain a competitive edge and elevate pricing.

Looking ahead: Branded real estate growth

In the coming years, Thailand’s popularity among wealthy property investors and those seeking full-time or second homes is expected to grow. Attractive advantages, such as foreign ownership allowances in condominiums, a wide array of long-term visas, and the continued global migration of high-net-worth individuals, provide a strong foundation for future growth.

As more global players enter the arena, the battle of the brands in Thailand’s real estate sector is expected to intensify.

To view more about the report, you can download the C9 Hotelworks Thailand Branded Residences Market Review 2024 to learn more.