Illustrative image (Photo: danviet.vn) Branded residences, as a property sector, have proved to beincredibly resilient in the face of global uncertainty and change. The sectorhas not only survived the disturbance but continues to thrive. Over the past 10years, it has grown by over 150%, Savills reported.
Savills Branded Residences shows that Dubai, South Florida, andNew York are the top three locations for branded residences globally this year,based on their supply of completed and pipeline schemes.
By volume of pipeline, the United States, the United ArabEmirates, Vietnam, and Mexico are forecast to add the largest number of schemes– more than 30 in each country, in the future.
Vietnam is leisure and business destination, and both tap into awide range of international demand. The high net-worth individual (HNWI)population in Vietnam has expanded by 86% in the last five years. Theburgeoning middle- and upper-classes in the country also present furtherpotential for branded residences.
Mathew Powell, Director of Savills Hanoi said: “During theeconomic turmoil, buyers will look for the property with long-term investmentpotential, this is also an advantage of branded residences.
"International brands bring their own quality assurance:through design, service, amenities, but also through reputation. Therefore, itis good time for branded residences development to the global experiences thatbranded residences bring.
“Vietnam market for branded residences is continuing to expand,especially Vietnam urban and resort market with a very strong potential.
"There is live interest for brands to enter into new marketsand look for new locations to grow their portfolios not only in the resortdestinations but also in major urban centres. The collaboration with brandsalso helps developers with better recognition.
"On the demand side, there’s a lot of demand for three- andfour-bedroom apartments which provide extra space for families. Having saidthat, we also see a lot of interest for two-bedroom units from young familiesand couples, as well as buyers that are using the residence as their secondhome.
Younger customer base, affluent, globally-mobile individuals willcontinue to drive demand for branded residences.”
He also stressed the associated risks of poorly planned projects.The failure to hand over projects on time or with the expected financialcommitments has impacted the appetite for the second home market.
According to Oxford Economics forecasts, the highest growth interms of number of high-income households over the next five years is projectedin the Americas, Asia Pacific, the Middle East and European regions. Theselocations expect some of the new high-net-worth buyers to be looking forprimary residences and second homes in branded schemes. According to Savills,the future hotspots include some of the cities that are going to see astrong rise in wealth, such as Jakarta, HCM City, Beijing and Shanghai.
Domestic demand for luxury branded residences is likely to growfaster in emerging markets (where the base point is low), such as HCM City,where the quality of the existing stock is unlikely to meet the requirementsfor high-quality fit-out and services by new HNWI. In these markets there willbe opportunities for urban upscale products as well as luxury products forbrand-loyal, well-travelled customers./.
VNA
