Thailand has emerged as the frontrunner in Asia’s branded real estate market, with a remarkable surge in demand surpassing USD 5.7 billion. This upward trend is highlighted in the latest report by C9 Hotelworks, titled “Thailand Branded Residences Market Review 2024,” which reveals that the market features THB 106 billion in properties currently for sale or in development.
Expanding Brand Landscape
The introduction of high-profile projects, such as the Porsche Design Tower Bangkok, underscores the trend of Thai developers embracing international luxury brands. As global migration increases, these developers are strategically targeting foreign buyers. The Porsche Design Tower, developed by Ananda, has set a new benchmark in luxury living, with prices reaching USD 33,000 per square meter (approximately THB 1 million psm) and overall unit prices ranging from USD 15 million to USD 40 million (THB 495 million to THB 1.3 billion).
The Allure of Brand Power
Ananda’s CEO, Chanond Ruangkritya, emphasizes the significance of brand influence in this sector: “Thais recognize that strong brands command premium prices. We chose Porsche to engage high-net-worth individuals and to distinguish ourselves in a competitive market. Our aim is to elevate prices and stand out effectively.”
C9’s research indicates that the Aman Nai Lert Bangkok project, launched in 2020, set a new standard for ultra-luxury branded residences, doubling median market prices and attracting a solid base of foreign investors.
Surge in Market Activity
Thailand’s branded residences market has experienced explosive growth, now featuring 46 branded projects with a total of 10,081 units. Bill Barnett, Managing Director of C9 Hotelworks, notes that 67% of these projects are located in resort areas, primarily Phuket, which alone accounts for 41% of the market. In contrast, Bangkok holds 33% of these properties, with a median price of THB 279,600 psm, reflecting the capital’s premium land values.
Shifting Focus Towards International Buyers
As the branded real estate landscape evolves, developers are adapting their strategies to attract international buyers, particularly in Bangkok. Given the tightening credit conditions for domestic purchasers and a sluggish economy marked by an oversupply of completed units, many developers are refocusing their efforts on overseas markets.
The luxury community Tri Vananda in Phuket has teamed up with the prestigious wellness brand La Prairie, while the Gardens of Eden project, designed by renowned architect Martin Palleros, showcases the push for differentiation beyond traditional hotel brands. Barnett explains, “We are witnessing a broader brand landscape within Thailand’s real estate sector, driven by the need for competitive advantages and increased pricing.”
Future Outlook: Growth on the Horizon
Looking ahead, Thailand’s appeal to affluent property investors and individuals seeking second homes is expected to continue growing. The country’s favorable conditions, including foreign ownership allowances for condominiums, a range of long-term visas, and the influx of high-net-worth individuals, lay a solid foundation for sustained market expansion.
As more global brands enter the Thai real estate arena, the competition among these luxury labels is anticipated to escalate, further enhancing the country’s status as a leader in branded real estate in Asia.
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