TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

C9 Hotelworks Releases New Branded Residences Report

Category: Hotels, Posted:11 Oct 2017 | 14:11 pm

Asia’s property developers are jumping into bed with hotel groups as branded residences flourish. 

Southeast Asia’s real estate love affair between property developers and hotel brands is morphing into a feeding frenzy. With nearly 100 mainstream hotel residence projects and over 21,000 units completed, the next three years is set to take the sector into bold new territory.

According to C9 Hotelworks new SE Asia focused Hotel Residences Market Trends (between 2018 and 2020) new completed units will represent a massive 83% rise over existing supply. The Top 5 pipeline project locations in order of volume are Danang, Phuket, Kuala Lumpur, Bali and Bintan.

Looking at changing trends, if we’d roll back the clock 18-24 months, urban projects were part of a shifting landscape, but today investment buyers are back heavily in resort destinations, especially Vietnam. Market-wide average sales price per square meter in the region (excluding Singapore) is US$5,713 in urban areas and US$3,207 in resort destinations.

Examining the geographic source of property buyers, Thailand’s more mature market is deeper with foreign purchasers, while Indonesia and now Vietnam are tracking an onslaught of domestic demand, back of a skyrocketing consumer class.

As for the attraction of hotel branded real estate C9 Hotelworks latest research reflects that market-wide premiums of recognized hospitality groups range between 25-35% versus independent properties. Chains that are most active includes Marriott, Banyan Tree, Hyatt, Melia, Minor and Mövenpick along with brands that have used hotel residences to spur their pipelines such as BHM Asia and Alila.

Despite the growth storyline, there is a a warning sign for both developers and property buyers over the onslaught of projects offering high levels of guaranteed returns over sustained periods. Danang is one location that has all the signs of a recipe for disaster with recurring returns being promoted at 10.5% on a long-term basis.

Compounding the outlook is the strong take up in the domestic segment with purchasers leveraging debt at extraordinary levels. If returns fail to materialize at the promoted numbers, developers will be unable to fund returns, buyer will forfeit units to banks and market values could evaporate. It could be a perfect storm and wider regulation for consumers over guaranteed returns across Southeast Asia is sorely needed.

To download the report CLICK.

 

Other News

Read more

Go Ahead. Get Your Ya-Ya’s Out

Category: Tourism, Posted:17 Jan 2021 | 06:00 am Close your eyes. Go ahead. Remember a time when you were young. The magic as a kid, taking blankets, sheets, or even boxes and creating a fantastical tent or unique crazed getaway in the house. Letting your imagination go wild and take you on a journey to incredible places. Or pitching a tent in the […]
Read more

Is Thailand Ready For Legalized Gambling?

Category: Tourism, Posted:16 Jan 2021 | 13:38 pm Topping Thailand’s economic news are comments by the Prime Minister that he is willing to consider opening up gambling, according to the Bangkok Post. With the Thai economy struggling at funding an economic recovery process that has been under extreme duress by Covid-19, the question now will the pandemic be an accelerator of a long-lasting […]
Read more

Phuket’s World Class Creative Mad Metal Men

Category: Tourism, Posted:15 Jan 2021 | 09:15 am The Underwood Art Factory with its crazy, cool, innovative metal sculptures and fabrication is one of the island’s best global exports to some of the leading design hotels around the globe. Founder John Underwood’s long-term work with renowned design guru Bill Bensley has seen his work showcased in countless iconic locations and properties. The Underwood […]