With the launching of the heavily anticipated Grand Marina luxury development earlier this year by Masterise Homes (a leading luxury real estate developer in Vietnam), the concept of Branded Residences was officially introduced into the Vietnamese real estate market. However, what we didn’t knew was that this concept has been around for quite some time.
In short, a Branded Residence is a residential property that is afilliated to a well-known brand (generally a hotel) and is available for purchase in the open market. Some popular hotel brands, such as Marriot International, have diversified their portfolio in the residential market and property developers have come to acknowledge the added value that such brands bring to their products.
Currently, Branded Residences can be more often found in the US & Asia specially in resorts and big metropolitan cities, however there is an undeniable global potential in other emerging markets across Europe and South America.
Benefits of Branded Residences
There is a reason why the concept has gain popularity over the last 20 years, Branded products offer a multitude of advantages to the buyers, the property developers & the brands themselves. Through brand association, buyers become more confident about their purchase due to the quality of service & product that such brand is recognized for.
Benefits for Developers:
- Well-known brands attract more customers
- Products can sell at higher prices
- Greater project exposure
- Built stronger relationships with customers & hotels
Benefits for Brands:
- Greater Brand Exposure
- Income from Sales, Management fees and licensing
- Built stronger relationships with customers & developers
Benefits for Buyers:
- State-of-the art services & facilities
- Higher rental yields
- Higher capital gains
- Reduce Investment risks
- Professionally managed
How does Branded Residences usually work?
The Brand (generally a hotel) grants a license to the developer to use their brand to market and sell their products. Such products can be purchased by individuals or entities for private use.
What fees are involved?
- License Fee: a small percentage (%) that the developer must pay to the brand.
- Management fee: paid by the owner, can be a mothly or yearly fee to access the services & facilities offered by the brand.
Types of Branded Residences:
- Condo hotel: Residences within the hotel
- Co-Located: Residences on the same site as hotel
- Standalone: Residences on separate site as hotel but within the same city as hotel
- Non-hotel: Branded Residences non associated with hotels.
Standard Services Offered:
- Access & use of facilities
- 24/7 security and concierge services
- Valet Parking
Branded Residences in Vietnam
Masterise Homes & Marriot International have brought the very first branded residential project to Vietnamese soil. The project, under the name Grand Marina, will be the largest branded residence under Marriot’s brand in the world. It will be an amazing opportunity for local and international buyers seeking for the next level of luxury living.
Project Fact Sheet:
|Location||Ton Duc Thang Street, Ben Nghe Ward, Ho Chi Minh City, Vietnam|
|Land Area||10 ha|
|Property Type:||Apartment, Shophouse, Commercial, Branded Residences|
|Status||Open for Sale|
|Price (Estimated)||15,000 USD/sqm|