Philippines among hotspots for branded residences in Asia

MANILA, Philippines —  Emerging markets in the Asia-Pacific region, including the Philippines, have become global hotspots for branded residences due to their affordability and growth prospects, according to a global real estate consultancy.

In its latest Asia-Pacific outlook report, Knight Frank said that Asia currently houses nearly 200 branded residence developments, around 20 percent of the global supply.

Knight Frank said it anticipates a substantial increase of 43,100 units through 180 upcoming projects from 2025 onwards, nearly doubling the region’s supply of branded residences.

It added that this growth is expected to be led by emerging markets, particularly Vietnam, Thailand and the Philippines, with a total number of units at roughly 18,000, 16,300 and 13,000, respectively.

“Emerging markets, encompassing Vietnam, Thailand, Philippines, Malaysia and Indonesia, have blossomed into global hotspots for branded residences,” Knight Frank said.

“Due to comparatively more affordable prices and higher growth prospects, properties in these destinations appeal to international investors seeking secondary homes,” it added.

Knight Frank said it estimates the average proportion of foreign buyers of such projects in Vietnam and Thailand to be 15 percent in 2024, up from 10 percent in 2019.

Aside from affordability, Knight Frank noted that another primary factor behind the surging demand for these exclusive properties can be attributed to the rapid growth of the local ultra-high-net-worth individuals (UHNWI) population.

Knight Frank said the current count of almost 18,000 UHNWIs in these countries is projected to reach slightly over 25,000 by 2028, reflecting an impressive 45.2 percent growth rate that surpasses the Asia-Pacific average of 37.3 percent.

Additionally, strong economic performance, bolstered by stable business environments and advantageous taxation frameworks, has also significantly contributed to attracting wealthy people to establish their businesses in these emerging markets, further stimulating growth in various sectors, including luxury real estate, according to Knight Frank.

“The multifaceted nature of branded residential developments, encompassing a variety of locations, types, brands and designs, remains a key attraction for this distinct property category. This rich assortment, combined with the dependability, exclusivity and security they guarantee, play a vital role in upholding the sector’s thriving growth trajectory,” Knight Frank said.

In an earlier report, Thailand-based hospitality consultancy firm C9 Hotelworks said that the Philippines has the second largest supply of branded residences in Asia, with a market share of 17.3 percent in the supply of branded residences in the region.

The report noted that Wyndham Hotels & Resorts leads the total supply of branded residences with 10,941 units, followed by The Ascott Limited, the Banyan Group and Marriott International.

“Among key destinations, Phuket has the highest number of units, totaling 4,771 units across 26 developments, followed by Manila and Bangkok,” the report said, noting that Manila has over 4,000 branded residences units.

C9 Hotelworks said the branded residences market in Asia is valued at $26.6 billion, comprising 68,001 units in total.