After three years in Dubai, Japanese investor Tsubasa Yozawa returned last year to what he calls his ideal home in central Bangkok: a 66th-floor Ritz-Carlton residence at King Power Mahanakhon, one of Thailand’s tallest skyscrapers.
From his perch high above the Thai capital, the 42-year old not only enjoys a panoramic view of the city skyline, but of a booming luxury property market he believes is Southeast Asia’s next big thing.
“Dubai still has the tax advantage,” Yozawa told Nikkei Asia. “But overall, Bangkok stands out in many ways, both for my family’s comfort and as an investment destination.”
His bet is paying off. Since buying his freehold luxury condo for about THB 70 million (or roughly USD 2 million at today’s rates) in 2015, its value has risen by over 70% in baht, he said.
Encouraged by the returns and relative affordability, Yozawa has been on a buying spree in Thailand, spending more than THB 280 million (USD 8 million) to snap up five more properties in landmark developments like the One Bangkok complex and the Dusit Thani Bangkok.
“There are more developers raising prices, but I see even greater room for growth,” Yozawa said.
Over the last few decades, North America has led the modern concept of these so-called branded residences, typically licensed by global hotel brands and built by local developers. But new projects are moving eastward and Southeast Asia is becoming one of the hottest markets.
Asia accounted for 21% of the 1,526 projects globally in 2024, with Southeast Asia comprising 12%, according to Savills Global Residential Development Consultancy (GRDC). While North America had the largest share at 25%, GRDC head Rico Picenoni noted that the momentum “is shifting to Asia,” adding that “it would not be unrealistic for this region to rival North America in activity over the next ten to 12 years.”
Among those putting more focus into Southeast Asia is Toronto-based Four Seasons, which operates six residential projects in the region, including the riverside property in Bangkok it opened in 2020. Chris Meredith, group head of residential, said the brand expects to double its private residences portfolio in Southeast Asia over the next five to ten years, partly “driven by increasing interest in branded luxury residences.”
The trend comes on the back of more affluent local buyers and a sharp rise in the region’s high net worth individuals. By 2028, real estate agency Knight Frank forecasts a 38.3% surge from 2023 in Asians with a net worth of at least USD 30 million, exceeding the pace of the Middle East at 28.3%, and North America at 25.7%, with Malaysia, Indonesia, and Vietnam all projected with over 30% growth.
Bill Barnett, managing director of C9 Hotelworks, a Phuket-based consultancy, also points to a “global migration” of investors following the Covid-19 pandemic, many embracing remote work and early retirement. “We’re seeing an influx of North American retirees, and it’s becoming a much more serious business,” he said.
However, the regional market is becoming increasingly crowded, with competition heating up as nontraditional players enter.
Branded residences in Southeast Asia have their roots in Thailand, where Indonesian Adrian Zecha, founder of Aman Resorts, launched the Amanpuri resort in Phuket in 1988. Singapore’s Ho Kwon Ping later started the Banyan Tree brand at the same beach resort.
Today, Thailand dominates the regional market, boasting 12,656 launched units worth USD 6.2 billion and accounting for 32% of total supply in Asia, according to C9 Hotelworks, with newer projects emerging in its capital. Between January and September, Chinese nationals were the top condo buyers with a 40% share of total transactions by foreigners, according to the Real Estate Information Centre (REIC). However, these also included mid-market residences.
Industry players say Thailand’s recent efforts to attract skilled professionals and wealthy foreigners, particularly from the US, China, Russia and Singapore, through long-term resident visas and privilege cards offering residency and tax incentives have contributed to the rise in property transactions. “The city has a high number of repeat visitors, many of whom may become property investors or end-users,” said Artitaya Kasemlawan, head of residential sales projects at CBRE Thailand.
“Thailand is where Aman’s story began with the opening of our first property,” chairman and CEO Vladislav Doronin told Nikkei Asia. Together with a local developer, the Nai Lert Group, the luxury brand is slated to open its THB 6 billion (USD 171.4 million) residential and hotel project in central Bangkok this April.
Situated within a 110-year-old park, owners of Aman Nai Lert Bangkok residences will have access to the amenities of the 52-suite hotel, including its wellness spa, dining venues, cigar bars, and even its own medical clinic. Doronin said the 34 residential units are “almost sold out.”
Southeast Asia, which Doronin described as a “key region” for the brand, accounts for over 10% of its global residential portfolio, with “several projects” to be announced this year.
For hotel chains like Aman, branded residences are increasingly becoming a vital revenue stream. Unlike hotels, which depend on fluctuating occupancy rates, they can generate more stable income from licensing and management fees. Industry players say hotel license fees typically range from 2% of sales for standard brands, and can exceed 5% for luxury brands, with ultraluxury brands commanding up to 10%.
“Hotel brands are keen to retain their luxury travelers through residential offerings,” said Xander Nijnens, Asia Pacific head of advisory and asset management at JLL’s Hotels & Hospitality Group, while allowing “developers of luxury hotels to benefit from the upside of selling associated branded residences.”
With Thailand’s high household debt weighing on the mass segment—the number of transactions fell 5.2% in 2024 from a year earlier overall and the value dropped 6.3%, local developers are increasingly pivoting to the luxury market. During its earnings briefing in February, Sansiri president Uthai Uthaisangsuk said the company sees most demand in the premium segment.
Companies have also been courting non-hotel brands, capitalizing on their deep-rooted customer loyalty. In October 2024, Raimon Land announced a partnership with French crystal maker Baccarat to build an ultra-exclusive residence in central Bangkok, with just four estates priced from THB 880 million (USD 25.1 million).
One of the most talked-about projects in the country is Porsche’s residential tower in Bangkok’s upscale Thong Lo area. Slated to complete in 2028, the 95-meter-high tower will comprise 22 units priced USD 15–40 million. The residence, which has already garnered interested buyers, is the first in the region after similar initiatives in Miami and Stuttgart.
“There’s a lot of interesting opportunities right now, especially in Asia,” Porsche Lifestyle Group CEO Stefan Buescher told Nikkei. He highlighted Thailand’s appeal, citing the country’s “incredibly vibrant” community of Porsche collectors and the relative ease of acquiring land compared to markets like Tokyo.
Buescher noted that the tower’s design has also taken in requests from fans, including a spiral ramp for cars located in the middle of the building, leading directly to customizable garages for owners. “For them, money isn’t the issue—it’s all about the experience,” Buescher said, adding that the company is now exploring additional projects in Southeast Asia.
Even as Thailand has long been the region’s branded residence hub, clusters are emerging elsewhere on the back of rapid economic growth. C9 Hotelworks data shows Vietnam, when including those in the pipeline, tops the region with 17,680 units, while the Philippines is catching up rapidly.
Nobu Hospitality, the Japanese restaurant and hotel chain, partnered with Viet Capital Real Estate to build a hotel and residential project in Vietnam’s central beach resort of Danang, its first resort in Southeast Asia. Slated to complete by 2027, the 43-story beachfront tower will have 264 residential units and 200 guest rooms.
Adelina Wong Ettelson, global head of residences marketing at Mandarin Oriental, said the group is planning to quadruple its dozen residential portfolios to 50 projects globally by 2033, including properties in Danang and Bai Nom in Vietnam, as well as one on the Indonesian resort island of Bali. “As a brand, when you compare us with others, it is really critical for us to be here [in Southeast Asia],” she said.
According to Knight Frank, prime residential price growth in Manila outpaced the region in 2024, rising 17.9% from the previous year, driven by strong demand from both locals and foreigners. The city outperformed Singapore and Bangkok at 3.6% and 1.4%, respectively. Banyan Group is building a luxury residence in Manila, its first in the Philippines.
Yet, industry players warn that buyers must also conduct due diligence on developers and management contracts, especially as first-time buyers tend to feel easily assured by the brand name. There are risks that brand owners might suddenly pull out if developers fail to adequately fund the management and maintenance of facilities.
“Not every developer gives an informed choice,” said Jason Thelen, senior director of sales and marketing at Sudara Residences, noting that some projects have switched management even before construction has been completed. “Phuket is fairly good on the scale of Southeast Asian destinations, but some markets are known for more predatory practices than others.”
Barnett of C9 Hotelworks said he is starting to see more “speculative” developments coming into some markets like Bali and Phuket. “I know we’re at the top of the cycle when I see developers promising 10–15% annual returns,” Barnett said. “That’s not sustainable.”
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.