London-based Yoo, one of the world's biggest residential design companies, is opening an office in Bangkok in a bid to expand its business throughout Southeast Asia.
Yoo has 80 projects in 34 countries, including upcoming projects in Phuket and Bangkok's Thong Lor area. The company has an office in Hong Kong, but the Bangkok office will focus more heavily on Southeast Asia as a region.
"We have considered opening an office for quite some time in Bangkok, as it's the hub of Southeast Asia," said Andrew Pang, Yoo's managing director for Asia-Pacific. "Being here in the market is critically important for us to grow."
Essentially branded residences are a growing real estate sector as designers partner with retail developers to create a "brand" residence sold at a premium to buyers. Yoo partners with celebrity designers to add credibility and value to the brand.
Other examples of branded residences include a 60-storey tower in Florida by Porsche featuring lifts for cars.
The company designs rooms and common areas in condominiums, co-working spaces and hotels. By attaching its brand, or the name of a famous interior designer, Yoo can help developers sell out new residences, and at a much higher markup.
"We believe our approach to design will resonate in this regional market," said James Snelgar, head of international business development at Yoo. "We expect huge business growth in the next five to 10 years as we expand into other spaces like hotels and co-living spaces."
According to research firm Savills, Yoo has the largest market share in non-hotel branded residences and has the largest number of branded projects, even more than Marriott's Ritz-Carlton and Four Seasons. Yoo holds 13% of total branded-residence projects worldwide.
Branded residences see a price premium of more than 31% compared with similar non-branded products. For example, premiums for Ritz-Carlton branded residences at MahaNakhon tower exceeded more than 80% over non-branded competitors.
Yoo plans to open a hotel in Phuket called Yoo2 by 2020. The branded property in Thong Lor, Khun by Yoo, will be finished some time this year and is currently set at the highest price per square metre in one of Bangkok's toniest neighbourhoods.
The company is also working on projects in Kuala Lumpur and a number of residences in Hong Kong.
"We work closely with developers to develop designs that are suitable to local tastes and cultures," Mr Pang said. "Thong Lor is a perfect area for our style of designs."