PH Ranks 2nd in Branded Residences Market Share A Boom for Luxury Real Estate?

PH Ranks 2nd in Branded Residences Market Share A Boom for Luxury Real Estate?

The Philippines has made a significant impact on the global luxury real estate market, ranking second only to Thailand among Asia's branded residences market. According to C9 Hotelwork's latest report, the Philippines' supply value of global luxury residence brands totaled $4.6 billion in December 2024.

Despite a slowdown in international tourism, economic growth in key cities such as Metro Manila, Cebu, Boracay, Davao, Palawan, and Bohol has driven demand for luxury residences. The report shows that Thailand holds the highest market share at 23.3 percent, followed by the Philippines at 17.3 percent, and South Korea at 11.6 percent.

The total supply value in the region was $26.6 billion across 68,001 units, with Malaysia, Vietnam, and India collectively accounting for 24.5 percent of total market share.

Market Value A Strong Second Place

In terms of market value, the Philippines ranked second at $4.6 billion, driven by growing urban and leisure destinations led by Metro Manila, which boasts 18 properties and 6,246 units.

The branded residences market has traditionally served the domestic and overseas Filipino workers (OFW) segments, but this has changed with elite, non-traditional hospitality brands establishing their presence for the first time. According to Bill Barnett, Managing Director of C9 Hotelworks, the influx of new global branded residences makes the Philippine real estate market more appealing to overseas buyers.

A New Era for Luxury Real Estate Diversification and Growth

Given the current domestic slump, diversity is needed versus relying purely on the domestic and OFW markets. Barnett notes that Thailand's success with ultra-luxury projects, which have usually been led by resort markets, could be replicated in the Philippines. Brands such as Porsche Design Tower Bangkok entered the market in 2024, commanding prices of $30,000 per square meter (sqm) and injecting new energy into the urban market.

As Barnett notes, Bangkok, like Miami and Dubai, is a playground city for wealthy collectors of unique real estate products. There is no reason why Manila could not also become a global playground city, given its regional access, entertainment, sports, gaming, and lifestyle.

A Bright Future Ahead Expert Insights

The Ascott Limited has expressed optimism on the sector's future, highlighting the strength of its brands over time. We are fully committed to the Philippines in the long term and believe the strengths of our brands — led by Somerset, Citadines, and Oakwood — will add confidence and services required by buyers of internationally branded residences, said Saowarin Chanprakaisi, Vice President for Business Development at Ascott Limited.

The future looks bright for the Philippine luxury real estate market, with global branded residences set to revolutionize the industry. As the sector continues to grow, it's clear that the Philippines is poised to become a major player in the global luxury real estate landscape.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.