Australia’s appetite for luxury apartments to follow global trend of branded residences

McGrath Estate Agents signals an expansion in Australia’s fledgling branded residences sector as partner Knight Frank launches a new annual publication, The Residence Report. The global report focuses on luxury residential development and includes a survey on the emergence of branded residences.

The global branded residences sector has experienced strong, sustained growth, with the number of schemes rising from 169 in 2011 to 611 today and a forecast 1,019 by 2030. Momentum has accelerated since 2023, fuelled by growing demand for branded living and developers’ appetite for premium positioning.

Australia’s most notable example of the concept is One Barangaroo in Sydney. Developed by Crown Resorts, it was the first true example of a branded residence in Australia.

Adam Ross, Associate Director of Prestige and International Sales at McGrath Estate Agents, Knight Frank’s Residential Partner in Australia, said the branded residence sector is still in its infancy in Australia. “We have seen strong interest among developers to deliver branded schemes as well as huge demand from buyers off the back of the Crown Residences sales at One Barangaroo in Sydney.

“While an emphasis remains on providing a range of services and amenities to serve wealthy but time-poor individuals, developers are investing in globally renowned architects, place makers and interior designers to create an identity for their project, community and the surrounding environment,” said Mr Ross.

Design is a critical part of the creation of a brand, as it enhances the quality of the final product and helps potential purchasers identify with the development.

“Not all sites are large enough to accommodate fully integrated hospitality-lead hotel branded schemes, however” he added. “In cases where they’re not big enough, we’re seeing the emergence of developers delivering high-quality, large, lateral living spaces in boutique schemes. Location, walkability, security, design and level of finish are all paramount in resonating with the luxury buyer.”

The market for prestige developments in Australia, whether branded or not, continues. Markets like South-East Queensland are primed for large, well-designed luxury apartments. The Penthouse Collection at Skye by Pikos on Kangaroo Point is likely to set a new benchmark in Brisbane with prices ranging from $15.5 million to $20 million. It offers a selection of oversized residences ranging from 324sqm to 697sqm of internal living spaces with generous roof terraces that accommodate beautifully landscaped private pools and alfresco dining areas.

Mr Ross said that while other markets around the world are fairly mature in terms of branded residences, they are still in their early stages in Australia, and there-in lies the opportunity.

The Residence Report states more than a dozen global hotel brands are considering Australia. Key projects have stalled and now in holding patterns citing land and construction costs but green shoots are emerging.

“In South-East Queensland, we have developers and international hotel operators both racing towards having schemes completed and open by the 2032 Brisbane Olympics,” said Mr Ross. “The sites are there, the desire and demand are there – the only uncertainty lies with finding builders with space on the books to deliver. The race is on! “

Head of Residential Research at McGrath Estate Agents, Michelle Ciesielski said, “There’s growing demand in Australia, but nothing comparable to One Barangaroo has been greenlit yet. For developers, it’s that ideal combination of timing, cost and the right site.

“When we look around the world, branded residences have become quite a significant asset within a buyers’ property portfolio,” she added. “It now goes beyond delivering a solution for developers to make their schemes feasible and luxury hotel brands building loyalty amongst their wealthy clients.”

The Global Branded Residence Survey 2025 found that branded apartments have grown from 27,000 in 2011, to more than 162,000 projected by 2030.

The branded sector is projected to keep expanding supported by increasingly geographic diversity and Australia is certainly part of this story.

There is also the entry of car, fashion, sport and watch labels.

“Today, hotel serviceability only forms part of the branded residence concept,” said Ms Ciesielski. “As this market has evolved, developers have widened their scope with brand collaboration with increasingly more being delivered with non-hotel brands.

“Although, there is stellar opportunity and value uplift in delivering for the long haul, not just the launch, and hotels do this exceptionally well. Currently 83 per cent of existing branded residences are hotel brands and it’s not surprising this is forecast to only dip to around 80 per cent in the future.”

Analysis by Knight Frank suggests there is enough depth in the Australian market to sustain an expansion into the supply of luxury homes. According to Knight Frank’s The Wealth Report, Australia ranked ninth globally for 2025 with 43,000 individuals worth at least $15 million.

Melbourne is forging into the branded residence sector with two projects underway. Seafarers by Riverlee is a 1 Hotels project under construction with apartment prices up to $18 million. Gurner Group plans to bring a major hotel brand to its Jam Factory development, expected to open in 2027.

On the Gold Coast, another brand concept, the Mondrian Residences, sold all 84 apartments within six months of launching off the plan in 2021. The Residence Report shows the Gold Coast ranking in the top ten global cities for exceptional growth in luxury residential markets in the five years leading to Q2 2025. It has seen a 34.2 per cent increase in property value underpinning the upper end of the market.