What are branded residences? A unique product type that you need to know
The rise of branded residences signals the ushering in of a new age of sophisticated consumers with high luxury lifestyle expectations
In fact, this type of property product class has been around for some time. Since the founding of the first branded residence in 1927, the Sherry-Netherland hotel in Manhattan, there are now over 400 branded residences around the world. However, strong renewed interest in this product type has only been apparent over the past few years, signalling the ushering in of a new age of sophisticated consumers with high luxury lifestyle expectations.
The positive correlation between demand for branded residences and wealth creation
Demand for branded residences is directly correlation with wealth creation (according to Knight Frank’s Branded Residences Report 2019). With the rise of the worldwide mega-wealthy population by 18% in the five years up to 2017 and the 40% forecast increase in the next five years, growing demand for brand residences is expected.
Summary of the benefits of branded residences:
- Quality & maintenance guarantee: assurance that buyers will get a quality product delivered by a trusted brand in turn enhancing the value of the asset
- Hands-off approach: owners are assured that their property is safe, maintained and secure while they are away.
- Product differentiation: the presence of a brand increases the visibility of the product when attracting affluent tenants and neighbours or future re-sale buyers.
- Price premiums: both purchasers and tenants are willing to pay more to purchase or reside in a quality product.
- Services: added-value all-round services such as room-service, housekeeping and concierge enhance the living standards of residents
The concept of branded residences has evolved to include a wider range of definitions outside of hotel group associations. Non-hotel brands are growing in the branded residences sector but still remain relatively small in comparison, including car companies like Porsche and Aston Martin, and fashion houses, such as Versace, Armani and Missoni.
YOO - the single largest brand of any type by number of projects
With over 50 residential developments completed and operating globally, interior design firm “YOO” has overtaken hoteliers to become the single largest brand of any type by number of projects. Founded in 1999, YOO was established by John Hitchcox in partnership with internationally recognized designer Philippe Starck. YOO enlists a revolutionary mix of visionary design talent – Philippe Starck, Marcel Wanders, Jade Jagger, Kelly Hoppen MBE, Steve Leung, Sussanne Khan and YOO Studio.
Branded residences are attracting significant premiums in Asian cities, attracting wealthy end-users who strive to obtain these highly sought-after trophy assets. In particular, branded residences in Kuala Lumpur recorded 69% price premiums against non-branded luxury residences.
YOO8 Serviced by Kempinski in Kuala Lumpur City Centre (KLCC)
YOO has launched its latest design project in the heart of KLCC, YOO8 Serviced by Kempinski. It features unique fully furnished branded residences crated by world-renowned interior designer, Kelly Hoppen for YOO, with 5-star hospitality serviced by Kempinski Hotels. The development is set to be the world-tallest spiraled twin towers upon completion, a magnificent architectural feat.
At YOO8, the residences comprises of one- to three-bedroom apartments ranging from 700 to 1,300 sq.ft. with an average price per sq.ft. of HK$6,030. Luxury properties in KLCC are still relatively affordable compared to other Southeast Asian cities like Singapore and Bangkok, with the same international level of quality and service. To learn more about this one-of-a-kind project, kindly click on “Related International Projects” below.