Branded residences take Asia by storm

Insight: So-called branded residences, built by local developers but licensed by global hotel groups, are moving east: though the concept started in the US, it is rapidly spreading across Asia. The region accounted for a fifth of the 1,500+ such projects launched globally last year, according to estate agent Savills. Thailand dominates, with over 12,000 units – usually luxury apartments in tower blocks – worth some US$6.2 billion. However, the Philippines, Malaysia, India and, above all, communist Vietnam are developing branded residences at a furious pace.

Impact: Part of the boom is due to an influx of first-world retirees looking for a sunnier place to live. Even more, however, it speaks to the rapid growth in Asia’s wealth since it is high-net-worth Chinese, Japanese, and Koreans that are snapping up condos in Hanoi and Manila. In all of these markets, there is also an ongoing transition from public to private housing – and developers need to get the mix right between aspirational vs affordable housing, or they will see property markets soften further. For the big hotel groups, meanwhile this is a chance to broaden their brand and collect handsome fees without much capital outlay. No wonder this segment is attracting new players: the latest residences in Bangkok are being built for Baccarat and Porsche.

$9 billion

This is the boost to Japan’s economy from cherry blossom season, which is officially set to start on March 23rd in Tokyo this year. The estimate from Kansai University takes into account consumer spending on food, drink and transport as well as tourists coming specifically for ‘sakura’ viewing.

Insight: With its long-running takeover of domestic rival Asiana now complete, Korean Air – which unveiled a new logo and livery this week – is now larger than both Japan Airlines and All Nippon Airlines in terms of passenger capacity. Japan’s two main airlines are responding: JAL is launching a business partnership with Garuda Indonesia, while ANA has launched new routes to European cities, including Stockholm, Milan and Istanbul. Meanwhile, Cathay Pacific reported double-digit revenue growth for last year, though lower ticket prices and mounting fuel and staff costs squeezed profits.

Impact: The global airline industry has had a slow and painful recovery from the pandemic and only returned to profit in 2023, according to IATA, its trade body. Gradually, however, underlying travel demand is reasserting itself – and nowhere more so than in Asia, where IATA expects annual passenger growth of 5.1% compared to 3.8% globally. Despite the presence of many low-cost airlines, Asia’s national flag carriers still tend to dominate their markets and own the lion’s share of slots at the key airports. This augues well for their prospects over the next few years.  

Insight: Goodbye to its signature Toyota Crown Comfort taxis in iconic primary reds, greens, and blues. Hong Kong is revamping its taxi fleet by introducing taxis operated by five different companies—named “Joie,” “Big Boss,” “Syncab,” “Amigo,” and “Big Bee”—each with its own distinct color scheme. Over half of the new fleets will be EVs, potentially supplied by Chinese manufacturers, reflecting the city’s push to modernize its taxi industry, as well as reduce carbon emissions. 

Impact: New York’s yellow cabs, London’s black Hackney carriages, and Hong Kong’s Toyotas in reds, greens, and blues—taxis are vital to a city’s identity and represent part of its cultural heritage. The shift from traditional taxis to the colorful alternatives marks a significant change in Hong Kong's urban landscape. While the fares are expected to be higher than those of existing operators and ride-hailing firms, increased competition in Hong Kong’s taxi industry could help enhance customer satisfaction. Furthermore, the move towards EVs also underscores Hong Kong’s focus on sustainable transport and may indicate closer economic and technological ties with mainland China. 

Insight: This past week, China’s leaders have concluded the Two Sessions meetings, where the country’s top legislative and advisory bodies deliberated on the country’s growth target, spending priorities, and economic policies among other topics. 

Impact:  Amidst domestic and international challenges, the takeaways from this year’s Two Sessions offer cautious optimism to the private sector and investors as China aims to ramp up consumption and drive technological innovation.   

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