Bangkok joins Dubai and Miami as top global playground cities
Ultra-luxury global consumer brands from the fashion and auto sectors are moving into the real estate space in Asia as a natural extension of their powerful brand-led businesses – resetting the map of international buyers who are crossing borders like never before.
The surge in investment from overseas buyers, who can be more accurately defined as collectors of limited-edition assets, is focused on global playgrounds, of which Bangkok has been identified as the latest member, alongside Dubai and Miami, with the recent unveiling of the Porsche Design Tower by Ananda Development.
The C9 Hotelworks’ Asia Branded Residences Report further unveiled the total supply value of developments in the region topping a staggering 904.7 billion Thai baht (approximately US$26.6 billion), a number led by Thailand destinations Phuket and Bangkok.
In a space traditionally dominated by hotel brands the branded residences market is exploding with a proliferation of luxury lifestyle brands creating what Chanond Ruangkritya, CEO & President of Ananda Development, called a massive influx of international buyers about Bangkok over the last three years, establishing it as a global playground city like Miami or Dubai.
“Porsche has a cult-like following and this is an international community seeking limited-edition products.”
C9’s Bill Barnett spoke about the emergence of a new age in parallel with the rising importance of the brand.
“It is the dawn of the new age of the collector as the sector moves from hospitality to brand. Fashion and auto brands are well equipped with how to handle luxury customers as they are used to limited releases sold at premiums and exclusive items. Brand loyal customers cross borders.”
C9’s research revealed that the development of branded residences in Asia has surged in the last four years, with double-digit growth of 11% per year with 180 projects comprising 43,100 units expected to be completed from 2025 onwards, nearly doubling the existing supply of branded residences in the region.
Thailand has the largest supply of branded residences in Asia (in terms of value), followed by the Philippines and South Korea. The largest pipeline of new projects, however, is in Vietnam. In terms of cities, Phuket is leading the way, followed by Manila and Bangkok.
Gianfranco Bianchi, General Manager of Asia Pacific at The One Atelier revealed patterns of strong interest in non-hospitality brands with buyers looking for one-of-a-kind products that offered an experience synonymous with that brand.
However, hoteliers feel that the service offered by hospitality is still a compelling draw. A sentiment that Leanne Reddie, Chief Development Officer for The Chedi Hotels & Resorts agrees with.
“People still want highly personalised service, this is a key value proposition.”
While Penny Trinh, Vice President of mixed-use Development at Marriott International was bullish on Marriott moving into standalone residents. The Ascott Limited marquee is also keen on branded residences as they look to deploy their luxury brands in the sector, said Saowarin Chanprakaisi, vice president of business development for The Ascott Limited.
