Despite spluttering international tourism arrivals, the Philippines is a diva on the branded residence stage in Asia, recording second place in the region and drawing the attention of global luxury brands to the country.
In C9 Hotelworks’ Asia Branded Residences Report, the leading tourism and branded residences consultancy revealed a record-breaking supply value of USD26.6 billion across the region, comprising 68,001 units in total.
Thailand leads the market with a 23.3% share, followed by the Philippines (17.3%) and South Korea (11.6%). Emerging markets such as Malaysia, Vietnam, and India collectively account for 24.5% of the total market share.
In terms of market value, the Philippines is second only to Thailand too, recording a market value of USD 4.6 billion, said the report. The market is growing both in urban and leisure destinations, led by Metro Manila with 18 properties and 6,246 units, following which are of Cebu, Boracay, Davao, Palawan and Bohol.
The sector has traditionally been focused on the domestic and OFW markets but that is starting to change with elite non-traditional hospitality brands eyeing the market for the first time.
“The influx of new global branded residences is helping Philippine real estate market appeal to overseas buyers,” said Bill Barnett, managing director of C9 Hotelworks. “Given the current domestic slump, more diversity is needed versus relying purely on the domestic and OFW markets. Learn from Thailand.”
Branded Real Estate in Thailand has traditionally been led by resort markets, but with brands such as Porsche Design Tower Bangkok, coming in last year commanding prices of USD 30,000 per square metre, it has injected new energy into the urban market.
“Bangkok, like Miami and Dubai, is a playground city for wealthy collectors of unique real estate products. There is no reason why Manila could not also become a global playground city given its regional access, entertainment, sports, gaming and lifestyle,” added C9’s Barnett.
The Ascott Limited, one of the pioneers in international branded residences in the Philippines, with over 20 years of experience in the country, remains confident in the future of the market as it matures and grows.
“We are fully committed to the Philippines in the long term and believe the strengths of our brands – led by Somerset, Citadines and now Oakwood – will add the confidence and services required by buyers of internationally branded residences,” said Saowarin Chanprakaisi Vice President, Business Development, The Ascott Limited.