This shift reflects a growing demand for high-end living experiences and a desire for exclusivity. The rise of branded residences in South Korea is driven by several factors, including:

* **Rising disposable income:** South Korea’s economy has experienced significant growth, leading to an increase in disposable income among its citizens. This allows individuals to invest in luxury goods and services, including high-end real estate.

Seoul has the highest built-up sales price across all regions, reaching USD28,713 per square meter this year. Nevertheless, branded residences have higher price premiums in resort destinations compared to cities. Jeju and Gangwon-do, two of the country’s emerging resort markets, have seen significant growth driven by increased tourism activity. The high accessibility from Seoul has spurred demand for secondary homes and investment properties in these areas. Branded residences with recognized affiliations are breaking market sales price records while maintaining an above-average sales pace as these properties are perceived to have higher investment value with less risk. Currently, branded residences in Jeju and Gangwon-do has 4 and 6 times higher built-up sales prices compared to market-wide averages, respectively.

Therefore, with more attractive rental management programs introduced by international hotel brands, we see branded residences continue to grow in demand in South Korea. Property prices in the existing market make branded residences competitive and a viable alternative asset class in the broader real estate sector. Download the South Korea Branded Residences Market Review 2024 here