The Asia Branded Residences Report revealed that the branded residences sector achieved a record-breaking supply value of $26.6 billion across the Asian region, comprising 68,001 units. C9 Hotelworks Managing Director Bill Barnett discussed the latest updates and insight into Asia's branded residences sector recently at the Ascott Bonifacio Global City Manila. The discussion was part of the C9 Sessions: The Growth of Branded Residences in the Philippines, hosted by C9 Hotelworks Branded Residences, a tourism and branded residences consultancy firm. 

In the panel discussion, Barnett joined industry leaders such as Tajara Leisure and Hospitality Group President and CEO Cyndy Jarabata, The One Atelier General Manager Gianfranco Bianchi, Nobu Hospitality Regional Director Asia Pacific Lee Lin, The Ascott Limited Vice Presidents for Business Development Saowarin Chanprakaisi and Vanessa Koo, and Delivering Asia CEO David Johnson.  

Barnett showed that Thailand leads the market with a 23.3 percent share, followed by the Philippines (17.3 percent) and South Korea (11.6 percent). As emerging markets, Malaysia, Vietnam, and India collectively account for 24.5 percent of the total market share.

He also noted Thailand's market value of $6.2 billion while the Philippines recorded $4.6 billion.

In terms of property size and value, Thailand has the highest number of units with 16,271 units across 65 properties at $5,478 per sqm, followed by the Philippines with 13,276 units in 46 properties at $4,326 per sqm, and South Korea with 3,026 units in 16 properties at USD11,456 per sqm.

“When we look at the Philippines, there are over 13,000 units for sale in the branded residences market. That's a big portion,” said Barnett.

He also observed the market growth of both urban and leisure destinations, with Metro Manila leading with 18 properties and 6,246 units, followed by Cebu, Boracay, Davao, Palawan, and Bohol. 

While the sector had been focused on the domestic and OFW markets, Barnett noted the entry of elite non-traditional hospitality brands eyeing the local market for the first time.

“The influx of new global branded residences is helping the Philippine real estate market appeal to overseas buyers. Given the current domestic slump, more diversity is needed versus relying purely on the domestic and OFW markets. Learn from Thailand,” he added.

Leading by example

Thailand's branded real estate has been traditionally led by resort markets. In 2022, Thailand’s wellness economy market recorded $34.6 billion, according to the report. “In an integrated resort-like Laguna Phuket, developed by the Banyan Group, 60 percent of their property buyers came first as tourists. They like the location and the product, so they end up buying the property. When we look at global trends, that's what's happening out there. Wellness tourism does drive, eventually, branded real estate sales. So that's an important lesson we can learn,” said Barnett. “In this country, this is something you can do. In terms of people working in hospitals, there are no finer people than in the Philippines. People coming in for medical and wellness also create lifestyle buyers. The urban flight (to tourist destinations) is a key indicator.”

He also showed the growing presence of branded residences launched by brands outside the hospitality sector in Thailand, citing last year’s entry of  Porsche Design Tower Bangkok into the urban market with a commanding price of $30,000 per sqm, an impetus to a global playground city. Automotive brands Bugatti, Lamborghini, Bently, Mercedes-Benz, and fashion brands Giorgio Armani, Versace, and Karl Lagerfeld had partnered with property developers in different cities.

“Bangkok, like Miami and Dubai, is a playground city for wealthy collectors of unique real estate products. There is no reason why Manila could not also become a global playground city given its regional access, entertainment, sports, gaming, and lifestyle,” added Barnett.

He also urged developers to look into the global migration of people around the globe, their motivation for buying properties, and in response, to scale up developments. “People are bringing in their grandparents and buying villas where they all live together. The parents buy houses and bring their kids to international schools. We see people retiring from North America. People move from border to border investing in property,” said Barnett.