Investing in a condo in Singapore has become a top choice for both local and foreign investors, thanks to the country’s strong economy, political stability, and exceptional standard of living. With a dynamic real estate market, Singapore offers a wealth of opportunities for investment, and condos are particularly appealing for their convenience, amenities, and potential for high returns. With Singapore Projects on the rise, this article will delve into the advantages, key considerations, and necessary steps involved in investing in a condo in Singapore.
Original Article:C9 Hotelworks, an Asia-based hospitality consultancy, has reported that the market value of branded residential projects in Asia has reached a record high of US$26.6 billion ($35.5 billion). There are currently over 68,000 luxury units available, with Vietnam leading the region in terms of the number of branded residential units at 17,680 across 59 properties. The average price of a branded residential unit in Vietnam is around US$350 per square foot (psf).Thailand follows closely in second place with 16,271 branded residential units across 65 properties. The majority of these units are priced at US$510 psf. The Philippines is next on the list with 13,276 units across 46 properties, with luxury properties in the country averaging around US$400 psf.However, it is Singapore that commands the highest prices for branded residences in Asia, with units priced at US$2,140 psf. Japan follows closely behind with prices averaging around US$1,935 psf.The managing director of C9 Hotelworks, Bill Barnett, says that there has been a rapid growth in the branded residence market in recent years for new markets such as South Korea, which has 3,026 units across 16 properties, and Malaysia, which has 6,014 units across 24 projects.Infographic: C9 HotelworksIn recent times, urban-located branded residences make up 56% of the existing supply in Asia, with luxury urban projects taking the lead in terms of market value. For example, urban branded residences in South Korea are typically priced at US$2,670 psf, which is more than half the cost of resort projects, which average around US$1,040 psf.In Thailand, urban branded residences also fetch higher prices at around US$770 psf, compared to US$430 psf in resort locations. This shows the appeal of top hospitality, and other luxury lifestyle brands have spurred hotel groups and premium brands to increase their licensing fees. It is now common for luxury hotel brands and lifestyle brands to request a 6% to 10% cut in the sale price of each branded residential unit.Thai developer Ananda Development and German automaker Porsche recently unveiled the ultra-luxurious Porsche Design Tower Bangkok in Thonglor last August. The 22-unit tower, which is set to be completed in 2028, is the first Porsche residential tower in Asia, following the Porsche Design Tower Miami which launched a decade ago. Prices for units in the tower range from US$15 million to 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)The general manager of Asia Pacific at The One Atelier, Gianfranco Bianchi, notes that in recent years, more and more luxury lifestyle brands have been exploring partnerships to license their branding into real estate developments across the Asia Pacific region. One Atelier has partnered with several well-known 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.Hospitality-affiliated branded residences provide top-of-the-line hospitality services, while fashion or design-branded residences offer rare trophy homes that reflect the design and luxury aesthetic that have made these brands synonymous with luxury lifestyles today, says Bianchi.Ananth Ramchandran, head of advisory and strategic transactions in hotels and hospitality (Asia) at CBRE, notes that property cooling measures have led many high-net-worth Singapore-based buyers of branded residential properties to consider trophy assets in nearby regional markets.“We’ve seen a significant decrease in the number of inquiries and discussions from Singapore developers looking to explore high-end ultra-luxury branded residential projects in the country. The harsh property cooling measures have dampened foreign buyer demand,” he adds.888 Brickell is a branded residence in Miami that was designed by the fashion house Dolce & Gabbana.Singapore-based high-net-worth buyers are now increasingly looking at luxury-branded residences in destinations such as Phuket and Bangkok in Thailand, Bali in Indonesia, and emerging markets in Vietnam. These locations are just a two-hour flight from Singapore.“The relatively short travel time and availability of regularly scheduled direct flights make it much more appealing to Singapore-based buyers,” he says. In the last month, carriers such as SIA, Scoot, AirAsia, and Jetstar completed around 150 flights per week between Singapore and Phuket.Sudara Residences senior director of sales and marketing, Jason Thelen, adds that: “Singapore has quickly become our top regional market for buyers looking for second homes, making up over 45% of regional purchases.”Hospitality operators such as The Ascott are also tapping into the future growth of the branded residential segment in Asia, according to Saowarin Chanprakaisi, vice-president of business development at The Ascott. “We believe the emotional resonance of our brands like Ascott, The Crest Collection, and Oakwood Premier have reputational strengths in the market.”“Branded residential operators must earn and maintain trust in the brand by delivering the level of service that will ultimately translate into the long-term value proposition of the asset,” she says. Ascott is looking to expand its share in the market by partnering with developers looking to enter the branded residential market.