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Purchasing a Singapore Condo requires careful consideration of its upkeep and management. Like any property, condos come with maintenance fees that cover the maintenance of shared spaces and facilities. Although this might add to the overall cost of ownership, it also ensures the maintenance and value of the property. Employing the expertise of a professional property management company can alleviate the responsibility of day-to-day management for investors, making it a less involved investment. It is essential to factor in these maintenance and management fees when creating a financial plan for owning a Singapore Condo.
Original article:Data from C9 Hotelworks, a hospitality consultancy based in Asia, has revealed that the market value of branded residential projects in Asia has reached a record high of US$26.6 billion ($35.5 billion). With over 68,000 luxurious units now available, this sector is certainly booming.Vietnam takes the lead in Asia with 17,680 branded residential units across 59 properties. The average price of a luxury unit in Vietnam is around US$350 psf. Thailand follows suit with 16,271 branded residential units across 65 properties. The majority of these units have a price tag of US$510 psf. In the Philippines, there are 13,276 units across 46 properties, with prices averaging around US$400 psf.AdvertisementHowever, it is Singapore that boasts the highest prices for branded residential properties in the region, with units going for US$2,140 psf. Japan is a close second, with an average price of US$1,935 psf.Read also: Gilded Age luxury living reimagined at The Towers of the Waldorf Astoria, New YorkAdvertisementBill Barnett, the managing director of C9 Hotelworks, notes that there are other emerging markets that have seen a significant increase in branded residential developments in recent years. South Korea, for instance, now has 3,026 units across 16 properties, while Malaysia has 6,014 units across 24 projects, making them two of the fastest-growing markets in the region.Infographic: C9 HotelworksIn the post-Covid-19 era, urban-locale branded residences account for 56% of the current supply in Asia, with luxury urban projects dominating the market in terms of value. For instance, urban branded residences in South Korea sell for an average of US$2,670 psf, which is more than half the price of resort projects in the country, which typically go for US$1,040 psf. In Thailand, urban branded residences have an average price tag of US$770 psf, compared to resort locations, which have an average price of US$430 psf.Acording to Barnett, Asia’s branded residential market consists of about 12,330 units across 80 developments that are affiliated with luxury hotel brands, making up 31% of the market supply. “This data shows that a reputable brand can help a property command a premium price of 30%-35% above the market rate in the country. It also allows developers to increase their market share in the country,” says Barnett.Moreover, the popularity of top hospitality brands and other luxury lifestyle brands has led to hotel groups and premium brands charging higher licensing fees. Barnett states that it is now common for luxury hotel and lifestyle brands to ask for a 6% to 10% cut in the sale of each branded residential unit.Last August, Thai developer Ananda Development and German luxury brand Porsche, through its lifestyle arm Porsche Design, unveiled The Porsche Design Tower Bangkok in Thonglor. The 22-unit tower, which is expected to be completed in 2028, is Asia’s first Porsche residential tower, following the success of Porsche Design Tower Miami a decade ago. The units, which include duplexes and quadplexes, are priced between US$15 million and US$40 million.From left: Saowarin Chanprakaisi, vice-president of business development, The Ascott; Teo Junrong, vice-president of business development, The Ascott; David Johnson, CEO of Delivering Asia; Gianfranco Bianchi, general manager, Asia Pacific at The One Atelier; Jason Thelen, senior director of sales and marketing at Sudara Residences; Ananth Ramchandran, head of advisory and strategic transactions, hotels and hospitality Asia, CBRE; Lee Nai Jia, head of real estate intelligence of digital and software solutions, PropertyGuru Group and Bill Barnett, managing director of C9 Hotelworks. (Picture: C9 Hotelworks)Gianfranco Bianchi, general manager of Asia Pacific at The One Atelier, an international design consultancy specialising in branded residences for lifestyle brands, points out that in recent years, more luxury lifestyle brands have been exploring partnerships to license their branding into real estate developments across the Asia Pacific region.Read also: Investors step up demand for branded residences in Southeast AsiaAdvertisementOne Atelier has partnered with several high-profile brands to create branded residences, including the 28-unit Fendi Casa Residences by Armani in Miami, the 259-unit 888 Brickell by Dolce & Gabbana in Miami, the 90-unit Büyükyalı Residences in Istanbul, Turkey, and the Karl Lagerfeld Villas, a collection of five ultra-luxury villas in Marbella, Spain.While hospitality-affiliated branded residences offer top-notch hospitality services, fashion or design-branded residences provide a rare opportunity to own a trophy home that reflects the luxury and sophistication of the brand. This is something that the market has clearly shown a demand for according to Bianchi.In addition, Ananth Ramchandran, head of advisory and strategic transactions in hotels and hospitality (Asia) at CBRE, states that property cooling measures in Singapore have led many high-net-worth individuals to consider investing in trophy assets in nearby regional markets. He adds, “We’ve experienced a significant reduction in discussions and inquiries from Singapore developers who are looking to explore high-end and ultra-luxury branded residential projects in Singapore. The government’s cooling measures have had a negative impact on foreign buyer demand.”888 Brickell is a branded residence in Miami that was designed by the fashion house Dolce & Gabbana.Mr Ramchandran also states that Singapore-based high-net-worth buyers are now increasingly interested in luxury-branded residences in popular destinations such as Phuket and Bangkok in Thailand, Bali in Indonesia, and other emerging markets in Vietnam. This is due to the fact that these locations are just a two-hour flight away from Singapore. He states that the availability of direct flights between Singapore and these destinations make them a more attractive option for Singapore-based buyers, and flight carriers like SIA, Scoot, AirAsia and Jetstar operated approximately 150 flights per week between Singapore and Phuket last month.Read also: KSK Land launches second tower of KL luxury project 8 ConlayAdvertisementJason Thelen, senior director of sales and marketing at Sudara Residences, a Thai-based developer, adds: “Singapore has quickly become our top regional market for buyers looking for second homes, making up over 45% of regional purchases.”Another key player in the hospitality sector, The Ascott, is also capitalising on the growth of the branded residential market in Asia, according to Saowarin Chanprakaisi, vice-president of business development at The Ascott. She states, “We believe that our brands, such as Ascott, The Crest Collection and Oakwood Premier, have a strong reputation in the market.” Ms Chanprakaisi adds that Ascott is looking to expand its market share in the region by partnering with developers who are interested in entering the branded residential market.