Viet Nam is an expanding economy with a growing middle class and an increasing number of billionaires, high-net-worth individuals (HNWI), and wealthy individuals looking to invest in property. In this article, we discuss some of the leading brands globally and some of the brands and products emerging in the Vietnamese market, catering to the growing demands from Viet Nam’s super-rich.
Leading Brands
Over the past decade, there has been significant diversification amongst branded residences globally. This has resulted in a shift from a market dominated entirely by hotel brands to a combination of hotel and non-hotel or lifestyle brands. In Viet Nam however, all the current branded schemes are operated by hospitality brands.
In terms of parent groups, Marriott continues to be a market leader, a position that it has held since 2002. Interestingly
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Source: Savills Research and Savills Global Residential Development
Globally, Accor ranks fifth by number of complete properties in 2021, up from sixth place in 2020. The company has expanded its presence in the sector significantly in recent years and has a significant pipeline. This growth is expected to push it into second place, behind Marriott, when factoring in pipeline supply. As of January 2022, Accor was a leading supplier in Viet Nam.
Non-US brands such as Emaar and Banyan Tree have risen to become global contenders. As more residents of regions outside North America and Europe move up the wealth ladder, there will be increasing demand for branded products that can cater to their needs. This is clear in VietNam where the number of branded schemes is expected to increase substantially between 2022-2024.
The Banyan Tree Group is a leading international group with resorts, hotels, residences and spas. With over 30 years of experience, this well-established premium brand has operations in 28 countries. After Banyan Tree’s success with its first Vietnamese branded residence, Laguna Lang Co Central in Hue, it is working with Madison Land on a new project in Ho Tram. Angsana Residences Ho Tram will provide five-star villas in a complex that prioritises green spaces and luxury living through its design and services. Villa owners will also receive a Banyan Tree membership, which gives them global access to the group’s facilities and services.
Urban Branded Residences
Globally, Marriott continues to be a market leader, a position that it has held since 2002. With its long-standing position as a market leader, it is known for its high-quality services, facilities, and properties. While the group already operates several hotels in Viet Nam, it has teamed up with Masterise Homes to launch its first branded scheme in Viet Nam. Grand Marina Saigon will not only be Marriott’s largest branded residence, but it is also the first urban branded residence in Viet Nam.
Urban branded residences differ in that they are positioned in cities and urban areas. This is unlike most of the existing branded real estate which is in resort locations like Da Nang, Kien Giang, and Quang Nam.
Grand Marina Saigon marks a new chapter for branded real estate in Viet Nam and is a rare investment opportunity at the heart of District 1; this project will be both a national and global landmark for branded real estate. It will also provide luxury services and facilities, to make owners feel like they are on vacation, despite living in the middle of Viet Nam’s largest city.
Mr Troy Griffiths, Deputy Managing Director, Savills Viet Nam said: “ Urban Branded Residence will be an interesting segment for the Vietnamese market. This is as Vietnamese people are willing to pay more for branded real estate because of the prestige, luxury lifestyle and safety of the investment. The partnership between Materise Homes and Marriott International will improve the standards of residential real estate in the Vietnamese market, promoting the development of ultra-luxury housing products such as in New York, London, and Dubai. We will see more urban branded real estate enter the market. In the next few years, we will see the launch of Grand Marina Saigon and projects by The Ritz-Carlton, also a Marriott brand, in Ho Chi Minh City and Ha Noi."
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