How do you view the potential of branded residences in Vietnam?

As the developer of the largest portfolio of branded residences in Vietnam, we certainly believe in the potential of the sector. And brand owners like Marriott International and Elie Saab agree, having done their due diligence before deciding to extend their footprint to the branded residential sector in Vietnam.

When Masterise Homes first decided to bring this concept to Vietnam at Grand Marina Saigon, our research showed that the market would quickly absorb our products as they cater to the demand of High-Net-Worth-Individuals (HNWIs) for finer living or a timeless asset.

Multiple sales launches have proven that the transaction value of branded residences is absolutely within the amount that families on stable and high incomes in Vietnam are willing to spend or invest in real estate. Customers who seek the best in life are prepared to splurge and pamper themselves and their family in world-class services and amenities.

Another group of customers are driven to Grand Marina Saigon by their demand for a valuable trophy asset, much like a token of success and social status but with timeless value. Branded residences have been around for nearly 100 years and grown exponentially in the last decade. Associated with prestigious global brands, they have commercial value across the globe and have shown resilience against downturns and economic crises.

We have a lot of research backing us up. For example, Savills World Research listed Vietnam as among markets with the largest pipeline, of more than 30 projects, in their Branded Residences 2022 report. Savills also said it expects Ho Chi Minh City to be among the future hotspots of branded residences, as it is going to see a strong rise in wealth. Knight Frank, meanwhile, forecasted strong rise in the HNWI and UHNWI population in Vietnam in The Wealth Report 2022.

In theory, a branded residence is a highly liquid product. What is the reality in Vietnam?

One of the key selling points of branded residences is the living experience, whether it is the beautifully crafted space that embodies the haute couture brand’s DNA or the services and amenities operated by the hotelier. For a young branded residence market like Vietnam, it might take some time and a few completed projects for customers to understand and appreciate the differences between a branded residence and a regular non-branded residence that justify the price premium.

And in all fairness, compared to equivalent residential products, branded residences attract higher sales velocity due to the appeal of brands. And for our projects, this statement has been holding true.

We have had great sales results in both Vietnam and international markets such as Singapore and Hong Kong (China). The Ritz-Carlton Residences, Hanoi in particular sold out its domestic stock within a day. Testimonials from buyers pointed out one of the motivations for their purchases is the brand, which endorses product quality and provides services and operates amenities in hotel-branded residences. Customers have experienced services and amenities at JW Marriott hotels and Ritz-Carlton resorts during their vacations and want to make it their everyday experience. And as our projects are approaching completion, customers are even more eager to have first-hand experience of these branded residences.

As a developer, what is the most important factor in developing branded residences in Vietnam?

It is two-fold. One is to pick the right brand partner, which requires a clear understanding of your targeted brands and their DNA and an in-depth concept, positioning, and vision for the project. Different developers may prioritize different criteria when choosing a brand, including local / regional presence, brand awareness, and buyer demand, etc. Masterise Homes has selected brands based on how much value-add they bring to customers.

Two is delivering on your promises to the brand and particularly your customers. As a pioneer in the branded residence sector in Vietnam, Masterise Homes has made it our responsibility to materialize the “branded residence” concept, bringing its outstanding quality and experience to life. This is the reason why we are building mock-up units and show villas, and creating lifestyle events to bring customers closer to the branded experience that awaits them at these branded residences. Our world-class development partners and brand owners have been working closely with us to review and ensure the standards of our products, so there are numerous layers of quality control for customers’ peace of mind. We are very excited for these branded residences to be completed and offer the most outstanding luxury living there is in Vietnam.

What are the challenges or obstacles when developing branded residences in Vietnam, especially legal issues?

With Vietnam’s branded residence sector still in its early stages of development, developers must take an educational approach and explain the concept to customers, communicate the difference between a branded and non-branded luxury project, and justify the price premium using evidence from other markets. This becomes easier as branded residences approach completion. Customers will be able to physically experience and confirm what they have been told. In the near future, when our projects come into operation, they will be the strongest evidence for the outstanding value of branded residences.