Inside Mandarin Oriental 685 Fifth Avenue at New York. Photo: DSHVO
Almost a century since the first true branded residence – The sherry-Netherland hotel in Manhattan, opened its doors in 1927. The sector has grown rapidly, with more than 400 branded serviced residences across the globe and the majority are hotel brands.
Branded Residences is a luxury home that is associated with an established brand and offers the highest standard of quality, management and luxury services offered to the residents.
EDITION Residences by Marriott International. Photo: Marriott International
Though relatively new to Asia, they occupy a premium niche in residential property worldwide, with data from Knight Frank suggesting that branded residences usually cost an average of 25% to 35% more than a comparable non-branded home.
It’s not just the name that makes these properties worth more, however, the comfort and exclusivity they offer are compelling draws for potential buyers, especially those looking for second homes or even those who wanted to leave a great real estate legacy for multiple generations.
Property experts believe that branded residences will have a special niche because of their unique offerings as well as the attention to detail and quality service provided.
These products appeal exceptionally to high-net-worth individuals (HNWIs) with discerning tastes and who are willing to pay a premium for a luxury lifestyle.
Premiums against unbranded luxury residences are principally driven by the brand reputation, as well as the services offered.
The higher purchase price and rental premiums for branded residences can be attributed to their large size and high-end design, as well as exceptional amenities. It also offers convenience at a price tag, as such developments provide owners with personalised concierge services, top-notch hospitality and a full range of housekeeping services.
The traditional branded residences are generally Co-Located or Condo-Hotel development with integrated or linked residences.
They naturally benefit from the hotel brand of great quality, management and luxury services.
In essence, it offers the residents the comfort and permanence of home nonetheless with the full benefits and luxury of a five-star hotel.
In view of the fast-growing ultra-wealthy population in Asia has fuelled the demand for branded serviced residences that offer high-quality service and have the potential for capital appreciation.
Foreigners and expatriates who come from developed countries may actually find the pricing or rents of Malaysian branded serviced residences less expensive, as they are not priced in US dollars.
As the branded residences sector continues to flourish and expand rapidly, there will be more brands wanting to enter the market.
Although the market is currently dominated by hoteliers, we should expect to see non-hotel brands coming on board.
We already know of luxury automotive brands like Porsche Design Tower, Aston Martin Residences and Bentley Residences. We even have Walt Disney and celebrities like Pharrell Williams in discussions for their own branded residences.
But as the sector matures, more focus will be placed on creating unique experiences for homeowners. Concierge service may become a staple in all luxury developments, so branded serviced residences will have to be way innovative to stay ahead of the pack.
It will be exciting to see how the world of branded serviced residences and the luxury residential market change in the years to come.
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