The Rise of Branded Residences: A New Trend in Luxury Living

In recent years, the real estate landscape has witnessed a significant transformation, particularly in the realm of luxury living. One of the most notable trends is the emergence of branded residences, which combine the allure of high-end hotel amenities with the comforts of home. This trend is gaining traction globally, and Australia is no exception.

The Expansion of Branded Residences

According to a recent report by Knight Frank in collaboration with McGrath Real Estate, the branded residences sector has experienced remarkable growth. The number of branded residence schemes has surged from 169 in 2011 to an impressive 611 today, with projections suggesting that this figure could reach 1,019 by 2030. This growth is fueled by a rising demand for luxury living spaces that offer both exclusivity and convenience.

Branded residences are typically luxury apartments or condominiums that carry the name of a well-known hotel brand. They provide residents with access to a range of hotel-like services, including room service, concierge services, and recreational facilities such as pools and gyms. However, these residences are designed to maintain a level of privacy and separation from the bustling hotel environment, often featuring two adjoining towers-one for the hotel and the other for the residences.

The Appeal of Branded Living

The appeal of branded residences lies in their ability to offer a unique lifestyle experience. Residents enjoy the benefits of luxury hotel amenities while residing in a private space. This model has proven particularly attractive to affluent buyers looking to invest in properties that not only serve as homes but also as status symbols.

In Australia, one of the most prominent examples of this trend is the One Barangaroo development in Sydney, created by Crown Resorts. This project exemplifies the luxury and exclusivity associated with branded residences. Other notable developments include the Mondrian hotel and residences on the Gold Coast, which are part of Accor‘s expansion plans across the country.

Future Developments

The momentum for branded residences has accelerated significantly since 2023, driven by both consumer demand and developers’ eagerness to position themselves in the premium market. In Melbourne, for instance, developer Tim Gurner is set to introduce a major hotel brand to the Jam Factory development, expected to open in 2027. This reflects a broader trend where branded residences are becoming a significant asset within buyers’ property portfolios, as noted by Michelle Ciesielski, Head of Residential Research at McGrath Estate Agents.

A New Era for Commercial Leasing

In addition to the residential sector, the commercial real estate market is also experiencing noteworthy developments. A significant lease has been signed for 128,000 square meters at Goodman Group’s intermodal facility in Minto, New South Wales. This lease, secured by logistics giant Medlog for a duration of 15 years, marks a milestone as it is the first intermodal facility of its kind to be offered for lease in Sydney in recent years.

The facility, located at 9 Stonny Batter Road, comprises three freestanding warehouses, a two-level corporate office, and a substantial container-rated hardstand with stacking capacity. This development highlights the growing demand for logistics and transport facilities, particularly in a post-pandemic world where e-commerce and supply chain efficiency have become paramount.

The Surry Hills Sale

In another significant commercial real estate transaction, private investors Nick Kumar and Gajinder Paul are selling a prime site in Surry Hills, Sydney, with an estimated price tag of around $40 million. The nine-storey commercial building at 29-37 Bellevue Street currently houses the University of Southern Queensland and Canterbury College.

Each floor of the building spans 420 square meters and offers expansive views of the city and the Surry Hills neighborhood. With close access to public transport options, including light rail and bus routes, the property is well-positioned for future development. After two decades of occupancy by educational institutions, the site is ripe for refurbishment, presenting an attractive opportunity for potential buyers.

Conclusion

The rise of branded residences and the evolving landscape of commercial leasing reflect broader trends in the real estate market, driven by changing consumer preferences and economic conditions. As luxury living continues to gain popularity, developers are increasingly looking to create spaces that offer both exclusivity and convenience. Meanwhile, the commercial sector is adapting to meet the demands of a rapidly changing economy, particularly in logistics and transport.

As these trends unfold, they will undoubtedly shape the future of real estate in Australia and beyond, offering new opportunities for investors and residents alike.