CBRE, a global real estate consulting firm, has reported a significant increase in sales of well-received residential projects, defying economic downturns and the COVID-19 pandemic. The surge is attributed to the current preferences of high-end buyers who seek residences with world-class services and amenities, located in prime areas, featuring distinctive designs and high quality. Branded Residences meet all these criteria. Additionally, the potential for long-term rental income and profitability enhances the appeal of this type of project, as it is a key factor for this customer segment.

Ms. Atithya Kasemlawan, Head of Residential Project Sales at CBRE Thailand revealed that according to CBRE statistics, super-luxury condominium sales accounted for 27% of total residential project sales in 2021, with 84% of sold super-luxury condominiums being Branded Residences managed by five-star hotel chains. In contrast, other super-luxury projects had a sales share of only 16%. Notably, sales of Branded Residences increased by over 503% from the previous year due to rising demand amidst limited new supply, consumer trust in brand names, and prime locations, leading to record-high sales.

Currently, there are 19 super-luxury projects in Bangkok, with only 7 being super-luxury Branded Residences, which continue to attract interest from high-net-worth customers and investors. These projects have achieved higher sales than super-luxury projects not managed by leading hotel chains.

An analysis of customer and investor behavior in purchasing Branded Residences in 2021 by CBRE found that the majority of customers (44%) chose to invest for long-term rental returns or capital gains, while 33% purchased as a second home and 23% for personal residence. The Branded Residences sold by CBRE attracted 95% Thai customers and 5% foreign customers.

Ms. Atithya added, “Today’s luxury customers are not only meticulous in choosing projects based on location and product quality but also consider the convenience provided by long-term management from a five-star hotel brand. This gives customers confidence that the property will be maintained to world-class standards over time. For investors looking to rent out, Branded Residences with five-star hotel services are highly sought after in the rental market, making them a top choice for both Thai and foreign tenants due to their superior convenience compared to regular projects.”

Currently, the Branded Residences represented by the Residential Project Sales department at CBRE Thailand include the “Dusit Residences,” the only project in Thailand developed by a brand-owning five-star hotel, located within the Dusit Central Park project, a joint venture between Dusit Thani Group and Central Pattana. This mixed-use real estate project, valued at 46 billion baht, spans over 23 rai in the prime Core CBD area of Lumpini and Silom-Sathorn, providing easy access to major business districts and is opposite Lumpini Park, a large green space in the city center. This is a key factor attracting interest from both Thai and foreign target markets, and the project is now open for customer visits, receiving very positive feedback.

“For 2022, CBRE believes that super-luxury condominium projects, particularly Branded Residences, will continue to receive positive responses from both Thai and foreign customers seeking residences in business districts with five-star hotel service standards. This type of project offers value for both living and investment, addressing the needs of today’s customers,” Ms. Atithya concluded.