As global migration increases, Thai developers are looking to attract foreign buyers. Thailand is the leader in Asia in branded real estate with THB106 billion worth of properties for sale and under development.
Thailand’s property developers are looking beyond hotel brands to iconic automotive, wellness, and fashion labels in order to create identities that resonate with luxury buyers. Ananda’s Porsche Design Tower Bangkok attracted global attention with its ultra-luxury price of USD 33,000 a square meter. The unit price of this offering ranges between USD 15 and USD 40 million (THB495 million to THB1.3 billion), a new market high.
The power of the brand
Chanond Ruangkritya said that Thais understand the power of brands to drive premium pricing. Porsche is a popular brand among high-net-worth customers. We chose this brand to differentiate ourselves on a competitive market. “For us, it is about pushing prices and being different from the rest.”
C9’s research shows that Aman Nai Lert Bangkok will be the most sought-after product on the market in 2020. The project was able double the median market price at the time and attract a solid base foreign buyers.
The sector is experiencing explosive growth
Since then, Thailand has seen a boom in the branded residences sector. Bill Barnett of C9 Hotelworks reports that Thailand has 46 branded real-estate projects, totaling 10,081 apartments. “Of those, 67% are located at resort destinations.
Phuket is the leader with 41% while 33% are in Bangkok. Barnett noted that the median price in Bangkok was THB 279 600 psm. This is significantly higher than resort areas and reflects the capital’s land premium.
Changing tides: Targeting overseas buyers
As the branded property landscape evolves, developers are looking for the right combination of brand and product, especially in Bangkok. Developers are increasingly targeting overseas buyers due to tightening credit terms for domestic buyers, the sluggish economic climate, and the oversupply of finished units from large realty groups.
This shift fuels the need for differentiation outside of hotel-branded properties. “Today we are seeing a brandscape expanded across Thailand’s property market. New entries include Tri Vananda Phuket, a luxury lifestyle project that has partnered with global wellbeing brand La Prairie, as well as Gardens of Eden – an integrated project featuring award-winning designer Martin Palleros.
Looking ahead: Continued Growth in Branded Real Estate
Thailand’s popularity is expected to increase in the next few years among wealthy property investors, as well as those looking for full-time residences or second homes.
Attractive benefits, such as foreign-owned condominiums and a wide range of long-term visas are key to future growth. The battle of brands in Thailand’s property sector is expected intensify as more global players enter.
