How does water add luxury to a property

We investigate why any pool adds luxury to the price of a property – whether it’s a lake, ocean or river. The allure of water and living next to one makes it fun to come home. These bodies of water definitely add luxury to any dwelling.

From the tranquility of St Tropez to the panorama of Phang Nga Bay, and from the bustling waterways of Singapore to the iconic Sydney Harbour, waterfront addresses are among the most sought after worldwide. Almost everyone has the fantasy of living near a beach, ocean, lake, or waterway, especially in the midst of a fun vacation on a sparkling sunny day. For some, living near or next to water is magical. It engages our imaginations and all our senses – the passionate anticipation of first arriving at the waterfront, the fresh scent of water in the air, the salt on the lips, the cool breeze across the face, the screeching call of the seagulls crashing on the breakwater.

Premium for waterfront properties

It is therefore not surprising that the prices of waterfront homes are high. There are considerations that the buyer or investor must take into account before embarking on a landing. What kind of waterfront properties will suit your lifestyle needs – a lake house, a beach house with soft sand, or a waterfront condo? Will you be using the property full-time or only part-time? Some waterfront properties have strong cyclical demand, while others have year-round demand. Waterfront properties tend to rent at higher rates than inland properties. Hence, you should look to be able to rent it out easily if you only spend part of your time there. Don’t get distracted by the water.

You will need to inspect the property carefully to ensure that the property meets the standards. You should also look for any additional costs (compared to internal investment) and hidden costs. Flood insurance may be necessary. High maintenance costs are expected to keep the property looking charming and in good condition due to the high humidity and salt content. What is the history of the coastline? The environment is subject to change, especially with climate change affecting sea levels. Has the coastline changed significantly over time? Your waterfront property is just great because it is on the water. It will lose its luster when it is half a kilometer away from the water after ten years. Who will manage the property for you if it is not in use? Can it be added to the rental property pool to earn rental income when not in use? What are the costs and revenue share? Is the administrative agent reputable and able to reduce vacancies? Suddenly, the idea of ​​owning a piece of paradise overlooking the sea seemed to require a lot of work.

Brand Association

Branded Residence is a premium residential project that is associated with a high quality brand and caters to end users and investors. The main themes surrounding a branded residence are the focus on design, services, high-end amenities and architecture. The concept of branded housing is believed to have begun in the 1920s with the Sherry-Netherland Hotel in New York which successfully operated its side-by-side serviced apartment. Until the 1980s, when the Four Seasons Hotel successfully sold its condominium units on Four Seasons Place, the brand’s association position became significant. Hotel brand residences, a subset of branded residences, have evolved rapidly and grown into a global footprint. These branded residences can be either condominiums within a hotel that is set aside for sale, or an entirely residential property that is managed by a hotel brand for services and maintenance as well as rental management.

The hotel brand waterfront residences took off in Asia in 1988 when Aman launched its first resort in Phuket, The Amanpuri. The private residential villas were originally launched for less than $1 million USD. Today, her indicative value is estimated to be in excess of $10 million USD. Since 1998, more than 20 hotel-brand residences have been launched across Southeast Asia, nearly half of which are located in waterfront locations in Phuket and Koh Samui in Thailand, Bali in Indonesia, Da Nang and Phu Quoc Island in Vietnam, and Palawan in Vietnam. Filipinos.

It’s all about the brand

Branded waterfront residences allow residents to benefit from the use of hotel services, amenities, amenities and security. It is becoming more and more popular with investors who want to own a piece of paradise but don’t use the property all the time. These investors are attracted by the high-quality design and services associated with a trusted hotel brand, and use the property, for example, for four weeks a year. For the rest of the year, the hotel operator leases the property on his behalf. They are buying into the hotel brand’s ability to manage their properties and earn a share of the revenue. However, there is not only the benefit of reaping income from the property but also potential capital gains from resale. The private location plus a good brand that manages the property certainly makes the property more enjoyable and sought after, brings a premium, and can be easier to resell. With branded waterfront hotel residences taking off in some of the most sought-after vacation destinations, we can expect these properties to become even more desirable as a vacation home and as an investable asset.

coastal attraction

Featuring two branded waterfront residences, one right on the beach and one on the lakeside, MontAzure on Kamala Beach, Phuket, Accor launched the first MGallery residences in Thailand within this mixed-use development. Soneva, innovators of luxury and environmentally sustainable resorts, has developed three such resorts in the Maldives (Soneva Fushi and Soneva Jani) and Thailand (Soneva Kiri). Banyan Tree, which has long operated award-winning waterfront spas, has offered residences at some of its resorts for sale. International hotel brands have also begun to offer hotel-managed waterfront lodgings in response to growing demand globally. The likes of the Four Seasons, The Ritz-Carlton, Mandarin Oriental, and even the luxury fashion house and jeweler Bvlgari are just some great examples.

While you can never guarantee your investment, a branded waterfront property managed by a hotel is an investment with a view, and it’s probably something to bet on.
Read more about Leung Bun Ho’s insights here.

Leung Boon Ho, CEO of Arcadia Consulting Pte Ltd
Boon Hoe is the founder and CEO of Arcadia Consulting Pte Ltd, a real estate advisory and real estate brokerage firm focused on the marketing of luxury residences as well as cross-border investment brokerage. With a track record of over 20 years in project management and marketing of premium properties in Singapore and major cities in Malaysia, Indonesia, Thailand, Vietnam and Cambodia, Boon Hoe advises clients from the acquisition stage, strategic planning to marketing, implementation and divestment.

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