The branded residence segment is experiencing strong growth in Vietnam, positioning the country as one of the most dynamic markets in Southeast Asia. This trend is driven by the rising number of high-net-worth individuals, increasing interest from international investors, and the expansion strategies of global hotel brands.

Within this model, brand affiliation is expected to create clear differentiation, enhance overall value, and support sales performance compared to conventional real estate projects. In practice, branded residences can generate a “brand premium” of between 10% and 30% compared to similar products in the same segment, depending on location, scale, brand, and execution quality. In addition, brand value is expected to accelerate sales velocity and strengthen a project’s competitive positioning in the market. 

Table of content 1. Vietnam ranks among the top four global branded residence markets 2. A shift from resort destinations to urban areas 3. Risks and challenges in branded residence investment 3.1 Higher Management Fees 3.2 Misalignment Between Brand Promise and Delivery 3.3 Wide Spectrum of Brands and Structures 4. Looking Ahead

1. Vietnam ranks among the top four global branded residence markets

Based on total existing supply and projects under development, Vietnam is now among the world’s top four branded residence markets, surpassing Thailand in the number of projects, marking a notable shift from previous years when Thailand led the region. 

2. A shift from resort destinations to urban areas 

Currently, most branded residence projects in Vietnam remain concentrated in coastal destinations, unlike more mature markets where this segment is primarily located in major cities. However, this trend is evolving. Among projects under development, urban branded residences account for around 60% of total supply, a sharp increase from 28% of completed stock. This highlights a clear shift towards major cities such as Ho Chi Minh City and Hanoi. 

Mauro Gasparotti, Senior Director, SEA at Savills Hotels, believes, “We are just starting to see the emergence of urban branded residences in HCMC and Ha Noi. We expect this segment to grow significantly in the coming years, as developers increasingly look to differentiate their products and justify higher pricing. However, the anticipated risks are similar to what we experienced with the condotel sector. While we will see several well-designed, carefully planned, and high-quality projects, we will also see many semi-improvised developments. In these cases, the branded residence concept may be used primarily as a marketing tool to accelerate sales, without truly delivering a product that meets the expected standards.” 

However, he also highlighted potential risks: in some cases, branded residences are merely “labelled” for sales purposes rather than representing a genuine commitment to delivering additional value compared to conventional real estate products. Buyers should therefore carefully assess execution quality and long-term value before making decisions.  

3. Risks and challenges in branded residence investment 

3.1 Higher Management Fees 

Branded residences typically come with higher management fees due to strict brand standards and premium service requirements. While management fees for standard high-end residential projects range from VND 20,000 to 40,000 per square metre, those for branded residences can be four to five times higher, driven mainly by staffing costs, additional services, and brand compliance requirements. 

3.2 Misalignment Between Brand Promise and Delivery 

Another risk lies in inconsistencies between initial sales commitments and the actual delivered product. This is particularly common among developers new to the branded residence segment who may lack experience in design and amenity planning, affecting overall consistency and operational quality. 

3.3 Wide Spectrum of Brands and Structures 

Global hotel groups continue to dominate the branded residence segment due to their scale, operational expertise, and diverse brand portfolios. As of the end of 2025, there were approximately 910 branded residence projects in operation worldwide, with the top 10 hotel groups managing nearly 45% of total supply. 

At the same time, the growing demand for personalised living experiences has driven interest in luxury brands beyond hospitality, particularly in fashion and design, such as Elie Saab, Fendi, and Versace, as well as even supercar brands. Partnership structures are also becoming more diverse, ranging from management agreements and brand licensing to more flexible branding arrangements. 

Uyen Nguyen, Associate Director at Savills Hotels, adds, “The choice of brand is critical. In some cases, the brand is used more as a marketing tool than as a true operational backbone. If not executed properly, this can lead to underperformance and reputational risks for developers and brand licensors.” 

4.  Looking Ahead 

As the market continues to mature, competitive advantage will no longer rely solely on associating with an international brand, but rather on consistent execution and the ability to deliver a high-quality living experience aligned with brand standards. 

For both developers and buyers, the long-term success of branded residences will increasingly depend on execution capability, operational sustainability, and the tangible value delivered, rather than branding alone.