South Korea Tops Asia’s Branded Residences Pricing Premiums In C9 Hotelworks Latest Report

South Korea’s luxury real estate market has evolved significantly, transitioning from traditional residential properties to innovative branded residences. The trend began in 2008 when The Ananti Hotel introduced a pioneering co-ownership model, targeting affluent buyers seeking luxury vacation homes and social prestige. This success spurred other domestic brands like Lotte and Hanhwa Resorts to follow suit, while international players such as Marriott, Banyan Tree, and Capella entered the market, adding investment appeal with structured rental programs.

Today, branded residences stand out as high-value investments within South Korea’s luxury real estate market. These properties often command a price premium of up to 4 times the market-wide built-up sales price. Seoul has the highest built-up sales price across all regions, reaching USD28,713 per square meter this year. Nevertheless, branded residences have higher price premiums in resort destinations compared to cities.

Jeju and Gangwon-do, two of the country’s emerging resort markets, have seen significant growth driven by increased tourism activity. The high accessibility from Seoul has spurred demand for secondary homes and investment properties in these areas. Branded residences with recognized affiliations are breaking market sales price records while maintaining an above-average sales pace as these properties are perceived to have higher investment value with less risk. Currently, branded residences in Jeju and Gangwon-do has 4 and 6 times higher built-up sales prices compared to market-wide averages, respectively.

Therefore, with more attractive rental management programs introduced by international hotel brands, we see branded residences continue to grow in demand in South Korea. Property prices in the existing market make branded residences competitive and a viable alternative asset class in the broader real estate sector.

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