By Beatriz Marie D. Cruz, Reporter
PROPERTY advisory firm C9 Hotelworks expects that more developers will shift their focus to branded residences due to their increasing market potential and the underwhelming performance of mid-market condominiums.
“I think developers are going to be forced to move into other products because, at the end of the day, you’re going to induce demand because developers have to find earnings,” Bill Barnett, executive director of C9 Hotelworks, told BusinessWorld on the sidelines of an event on Feb. 4.
“If they’ve got this surplus of mid-tier condos, how are you going to get sales? So, they have to move to other products and niche locations. So, I find this a positive thing for the Philippines.”
The Philippines has the second-highest market share of branded residences in Asia at 17.3%, according to C9 Hotelworks’ latest Branded Residences Market Review. It trails only Thailand (23.3% market share) and leads South Korea (11.6%).
According to property consultancy firm Leechiu Property Consultants, developers are likely to work on branded residence projects to appeal to the high-net-worth market.
More luxury villas and larger condominium units are also expected to dominate the branded residences market, Mr. Barnett said.
Ripe markets for branded residences include Bonifacio Global City, Cavite, Bohol, and Palawan, he added.
“[In the] post-COVID [era], we see more multi-generational travel,” he also said. “In every market we work in, size is getting bigger because you have people who spend more time in their holiday house.”
As of December last year, the Philippines recorded around 13,276 units of branded residences across 16 properties, with a value of $4,326 per square meter.
Having more branded residence projects would help increase the value of developer properties, Saowarin Chanprakaisi, The Ascott Ltd. vice-president for business development, said on the sidelines of the event.
“For the Philippines’ market itself, where the real estate market has a lot of supply, to stand out from the existing supply offerings, having a brand collaborating with your project will make your values outstanding from the rest.”
Asia’s branded residences sector has a supply value of $26.6 billion, comprising 68,001 units in total. Of these, 30,461 units are located in urban areas, while 37,540 are in resorts.
Around 96% of branded residences in Asia are condominiums, while 4% are villas, according to the report.
Likewise, 12,330 units across 80 developments in the region are affiliated with luxury hotel brands, representing 31% of the total supply in the primary market.
By total supply, Wyndham Hotels & Resorts led with 10,941 units.
From 2025 onwards, about 43,100 units across 180 projects in Asia are expected to be completed, C9 Hotelworks said.
