The Four Seasons Private Residences on Charoen Krung Rd in Bangkok.

This year will see a doubling in the number of branded residences in Bangkok as more developers compete in this lucrative segment to cater to the needs of high-net-worth customers.

The number of branded residences in Bangkok will double to six projects. There will be 146 units at The Residences at Mandarin Oriental Bangkok, 335 units at the Four Seasons Private Residences Bangkok, and 133 units at the Banyan Tree Residences Riverside Bangkok completed this year, all of them located on the banks of the Chao Phraya River.

In 2019 and 2020, the number of luxury branded units will multiply threefold to over 1,300 units due to the completion of the three projects in 2019, followed by the 2020 completion of 231 units at The Residences at Sindhorn Kempinski Hotel Bangkok on Soi Langsuan.

One of the key selling points of a branded residence is the brand itself. Buyers believe that the brand endorses the quality of the project and creates an impression that the brand owner has done the required due diligence before agreeing to allow a developer to use its brand name. Buyers also want the conventional hotel style, with the common area management of an international brand and concierge services.

However, the brand itself is not an automatic guarantee of success. There needs to be the right combination of brand, location, design, and specifications. Once completed, the reputation will depend on not just the product itself, but also the quality of service and experience created by it.

Some branded residences are located together with their hotel counterpart, which enables services not usually provided in a normal condominium. Such examples include hotel facilities that are available for personal use, as well as residential facilities; a valet service that can park a resident's car in the private parking lot; and restaurants that offer partner discounts or provide room service to residents.

Other examples of attractive hotel services of branded residences are the availability of concierge services, including a standby trainer at the gym, who is ready to give advice to residents who may want to exercise. Branded residence staff can even prepare boxed food delivery with proper table settings, complete with hotel cutlery, or simply serve fruit, tea, coffee, and other beverages - all of which come at a cost of the higher common area fees or pay-as-use basis.

Buyers are willing to pay premium prices above other high-end unbranded developments in similar locations because of perceived quality and level of service associated with branded residences, as well as the benefit of exclusivity since there will only be one development with that particular brand.

After all, high prices would mean that there is only a small group of high-net-worth individuals, a mixture of both Thais and non-Thais, who want and can afford this property type.

CBRE believes that there is a demand for branded residences with a small number of units for exclusivity, located in a desirable location and with the presence of a well-known brand from a leading hotel operator.

Aaron Aerni Kuvanun is a senior analyst at Research and Consulting, CBRE Thailand. He can be reached at bangkok@cbre.co.th Facebook: CBREThailand LinkedIn: CBRE Thailand LINE@: CBRE Thailand Twitter: @CBREThailand and website: www.cbre.co.th