PETALING JAYA (Oct 16): Branded residences in Kuala Lumpur recorded a premium of 69% against non-branded luxury residences last year. This was the second-highest price premium seen among Asian cities, according to Knight Frank’s Branded Residences Report: 2019.
The highest premium seen in 2017 was in Bangkok, at 132% above non-branded luxury residences, followed by Kuala Lumpur at 69% Manila at 36% and Phuket at 8%.
Branded residences are attracting significant premiums in Asian cities and the price premiums are driven primarily by location and can vary within the same city, stated the real estate consultancy in a press release today.
Knight Frank Malaysia head of residential sales and leasing / project marketing Kelvin Yip said branded residences are becoming popular in Kuala Lumpur as trophy assets that offer a high level of service, facilities and quality. They continue to attract affluent end-users and investors, he added.
Yip revealed that there were some 1,691 units of branded residences completed between 2014 and the first half of 2018 from schemes that include The Residences @ The St. Regis Kuala Lumpur, Banyan Tree Signatures Pavilion, Four Seasons Private Residences and The Ritz-Carlton Residences.
“More branded residences are scheduled for completion by 2021 and collectively they are expected to contribute more than 2,000 units to the existing stock,” he said.
Notable upcoming schemes include The RuMa Hotel & Residences, YOO8 serviced by Kempinski at 8 Conlay and SO Sofitel Kuala Lumpur Residences by the Accor Hotels Group.
Knight Frank Asia Pacific head of residential Victoria Garrett noted that the fast-growing, ultra-wealthy population in Asia is fuelling demand for branded residences and these buyers favour branded residences that offer the convenience of high-quality services delivered by a trusted brand and with the potential for capital appreciation.
“One example of this is One Barangaroo, Crown Residences in Sydney. As Australia’s first fully-integrated, six-star hotel branded residences, the project has received a very warm welcome from both domestic and offshore purchasers since sales commenced. Like The Royal Atlantis, ongoing interest is driven by a combination of its lifestyle offering, design and location,” she said.
According to Knight Frank global head of research Liam Bailey, the global branded residences sector is growing exponentially and they can now be found in almost every major city and major holiday destinations today.
“The Asian market for hotel-branded residences has seen strong growth, particularly in Thailand and Indonesia, with Asia now accounting for an estimated 30% of 400 developments globally. This trend is set to continue,” he added. — EdgeProp.my
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