For Tajara Leisure and Hospitality Group President and CEO Cyndy Jarabata, it is high time for more luxury brands to enter the real estate sector in the country to attract foreign market. She also discussed the importance of brands for luxury residences, buyer’s profile and their motivation to purchase branded residences, and developers’ guide at the recently concluded C9 Session held at Ascott Bonifacio Global City, Manila.
In her presentation, Jarabata indicated that brands do matter to buyers of luxury residences because the prestige reflects on their lifestyles. She explained that “when you're selling luxury branded residences, it's not just the price per square meter. We're talking about prestige and lifestyle per square meter; this is what buyers think and developers also think.”
She stressed that buyers who frequent a luxury development would likely notice a brand, motivating them to make an actual purchase of the property based on the brand’s reputation. Furthermore, they are considered cash buyers who are looking for long-term value. “They normally don't care about the price point. What they care about is what you expect in terms of the service,” said Jarabata.
Buyers, who are used to luxury living and paying a premium price, tend to look for residences that cater to their lifestyles with hotel-like amenities and services. She explained that “what you see in the hotels, mimics pretty much what they develop in terms of condos. The difference now is that it's more in tune being more homey. They have a full suite of services, a director of residential services, and a concierge waiting for everything that they need. Sometimes buyers who travel a lot just message the concierge when they come back to their home and call in for housekeeping.”
Luxury developments offer amenities such as the residents' lounge, 24/7 fitness center, in-residence dining and catering, private function rooms, and round-the-clock maintenance and repair services. There are also mahjong areas, and even a golf simulator just like in The Residences at The Westin Manila, as mentioned by Jarabata. “Some developments in island destinations have beach clubs with access to hotel services and amenities with signing privileges,” she added.
While luxury residences have a 30 percent premium price, Jarabata indicated that having a “brand drives sales.” Adding that hotels built next to residences mitigate risks in investment, and that brand familiarity among 80 percent of the buyers fetches a higher value and strong sales absorption.
In developing branded luxury developments, Jarabata mentioned brands, services, and location as top considerations. “There are some destinations that started adding residential developments because people do want to bring in families, they want wellness.”
In consideration of the market, “it is also important to have the right design mix, meaning you have to know whether you're building two, or three bedrooms, units that are bigger compared to what is in the market,” she explained.
While brands do bring sales, Jarabata said the showroom, launch events, and marketing plans are to be heavily considered. “The showroom is really the touchpoint in terms of communicating what you actually want to deliver. The launches and marketing for luxury are different so know your target market.”