By the end of the month, people who purchased in a new luxury development located 20 miles north of Miami are expected to get the green light to move in. In addition to amenities like private swimming pools and access to an onsite restaurant, spa and game room, each of the 132 condos will come with a truly unique feature: an in-unit sky garage, accessed via a first-of-its-kind glass automobile elevator system.
This might sound crazy, until you consider that the building is called the Porsche Design Tower, and that the buyers of units within it each own about 15 cars—at least one of them, naturally, a Porsche, said Gil Dezer, of Miami-based Dezer Development. "We decided to create something where the automobile was the focal point of the building," he said.
While it’s the first in the world to feature luxury automobile branding, this building won’t stand alone for long. Today, properties including the Bugatti styled villas in Dubai and the Aston Martin Residences in Miami are in the works. Others touting connections to luxury Italian fashion houses like Fendi, Armani, Missoni and Versace are also on the way.
More:Find Out How to Drive Your Aston Martin Car to Your Aston Martin Residence
While making the leap from cars (or clothes) to real estate might not seem like a natural brand extension, it actually makes good sense, said Allen Adamson, founder of New York-based Brand Simple Consulting. "There’s a luxury language that’s very well developed and specific, especially in the world of cars," Mr. Adamson said. "Because these brand images are so well defined, they quickly telegraph a specific luxury story to the potential audience, and make good linkages for real estate."
This means that developers can attract the right type of buyer because of what a brand’s name connotes, while the brands can simultaneously expand on their story, break through a crowded marketplace and connect with their target consumers. Both also get some free—and very valuable—marketing, especially if the collaboration works.
For these reasons, branded residential buildings are likely here to stay—and sure to spread to new international markets, in greater numbers—experts say.
For Mr. Dezer, who announced plans for the Porsche Design Tower in 2013, connecting his developments to a brand happened almost by accident, he said. It wasn’t until he worked on six residential towers with President-elect Donald Trump in Sunny Isles Beach between 2001 and 2008 that he saw the power of branding.
"Even in the financial crisis, we were very successful," he said, noting that the beachside location and quality product were important, but so was the Trump name. "I kind of got addicted to branding after that," he said.
More:Are Branded Developments the Future of South Florida Luxury?
When he heard Porsche was interested in getting into real estate, he pounced and has since picked up the master license for all future Porsche-branded buildings around the world. After he stayed in Dubai’s Armani Hotel, located in the iconic Burj Khalifa, and saw how thoroughly the property adhered to designer Giorgio Armani’s vision, he worked out a deal to develop the Residences by Armani/Casa, slated to open in late-2018, in Sunny Isles Beach, too.
Working with these globally recognized brands means a lot of free exposure, Mr. Dezer said, adding: "We don’t even advertise anymore."
For brands like British luxury sports car manufacturer Aston Martin, entering the real estate arena can mean a permanent imprint on an iconic building (in this case, one that will look like a sail), and the longstanding exposure that comes with it.
"We create beautiful cars for those who appreciate automotive fine art," said Aston Martin Vice President Katia Bassi in an email. "We are excited to extend our expertise in design and craftsmanship into a project of this caliber."
While Miami is currently the only U.S. city that has residential buildings with this type of brand affiliation, Middle East developers have pursued such collaborations in recent years as well. The Armani Residences in the Burj Khalifa, developed by Emaar Properties, are one example of this trend. Dubai-based Damac Properties are responsible for others, including buildings with Fendi Casa interiors in Dubai and Versace Home interiors in Beirut, Lebanon; Jeddah, Saudi Arabia; and now, London, England.
While individual flats in Damac’s AYKON London One have a touch of Versace, said Christian de Meillac, a sales consultant at Harrods Estates, the brand is mostly shown in common areas, like the pool and gym, where there’s a Versace printed punching bag.
More:Click to Take a First Look Inside Miami’s Latest Collection of Fashion-Forward Residences
Since launching the sales office about six months ago, "it’s gotten a very good response from buyers," Mr. de Meillac said, adding that about two-thirds of them are foreign, mostly from the Middle East or Far East. "I think we’re going to see more branded opportunities like this."
But while insiders are certain branded buildings are here to say, not everyone thinks that’s a good thing. The influx of branded buildings in Miami is often "a sign of weakness," said Mayi de la Vega, the CEO and founder of Miami-based ONE Sotheby’s International Realty, in an email. These branded buildings are often similar in style, unit size, amenities, services and even location. "The difference is simply in their marketing," she said, noting that, "as inventory increases in the market, developers are trying to get creative to lure buyers in."
Mr. Adamson, however, believes that any brand oversaturation problem will work itself out naturally. "There are probably only four or five luxury car brands strong and distinctive enough to add any value to real estate," he said. "If you stretch too far, you lose relevance and distinctiveness. The biggest risk is that you dilute the brand."
Here’s a look at other news from around the world compiled by Mansion Global:
The Italian Estate where Carla Bruni Grew Up is For Sale After Renovations
Long before she moved into the Élysée Palace, Carla Bruni spent her early years in a grand Turin mansion, situated on a 170-acre English-style park. The home is being marketed by Christie’s Real Estate (price upon request), and features 40 rooms, marquetry floors, restored frescoes in the hallways, and newly-added modern conveniences including an elevator and new heating system. (Architectural Digest)
More:Medieval Italian Castle with 80-Plus Rooms Going on the Auction Block
Geneva and Zurich Top the List of European Cities with the Highest Cost of Living
Glassdoor has released a report looking at cost and quality of living across Europe, weighing average incomes versus "how much money is needed to buy a standard basket of goods and services in different countries, including groceries, restaurants, transportation, utilities, and rent." Even though it has the highest rents in Europe, London only clocked in at No. 3 on the list, with Geneva—which is 3% more expensive to live in than New York City—taking the top spot, followed by Zurich, where costs for transportation and utilities are astronomical. Paris, Dublin, Oslo, and Stockholm, also made the list of Europe’s priciest cities. (Business Insider)
U.K. Housing Prices Saw an Unexpected Surge in October
U.K. housing prices surprised many experts by jumping 1.4% in October (compared to 0.3% in September), bucking the larger trend of a Brexit-related slowdown, according to a new survey from mortgage lender Halifax. The growth is thought to be the result of low mortgage rates and a lack of available housing stock, and an economist from IHS Markit said, "With the economy currently resilient, house prices may well rise modestly in the near term," though that could change in 2017 amid heightened economic uncertainty and shaky consumer confidence. (The Guardian)
China’s Major Cities Start To Show the Effects of Government Market-Cooling Measures
Sales volume has plunged across Chinese cities amid new government measures to slow down the nation’s runaway property market, with transactions in Beijing dropping 41% year-over-year last month, an 18% drop in Shanghai, and a 50% drop across smaller cities. In October, new property entering the market also dropped 61% year-over-year in Beijing, Shanghai, Guangzhou, and Shenzhen. Experts predict sales and construction will continue to slow as investment grows at a moderate rate, while sellers who are loathe to lower asking prices are at something of a standoff with sticker shocked buyers who are waiting for potential deals, and hampered by new, higher down payment requirements. (Bloomberg)
More:Hong Kong Unveils Higher Stamp Duty to Cool An Overheated Market
Sky-High Home Prices in Toronto Are Pushing Demand Into Adjacent Cities
Prices and demand in Toronto are so high that they’re driving buyers in droves to nearby towns and cities, such as Hamilton, where residential permits more than doubled in September to record values of C$204 million, or St. Catharines, where permits jumped to C$66 million, their highest number on record. Sales in Hamilton-Burlington also rose to a record high in October with inventory plunging, bringing the average price of a freehold home up 15% to an average of C$540,250. It’s still a significant bargain compared to Toronto, however, where the average price of a detached townhouse downtown spiked 22% in October up to C$1.3 million, and the average price for condos jumped 13% to around half-a-million dollars. (Business Times)
$23 Million Trump Tower Penthouse (just below Donald’s) Hasn’t Sold For a Year
As demand and values in Trump properties drop across New York City, an enormous $23 million penthouse in Trump Tower remains available after a full year on the market. Located just a few floors down from the president-elect’s own residence, the 3,725-square-foot condo was once rented out for $110,000/month to Michael Jackson and Lisa Marie Presley, and features a marble foyer, double living room, floor-to-ceiling windows with views of Central Park, and a paneled library. (6sqft)
More:Live Below Donald Trump for $23 Million
Price Chops Across the U.S. Market May Mean We’ve Hit Peak Housing Costs
Both sales and rental markets across the country are seeing more price cuts, according to new data from Trulia, which could be an indication that the years-long rise in housing prices may have hit its limit. Looking at data for the last year through September, Trulia found that 9.32% of rental listings nationwide saw price reductions (compared to 7.97% the previous year), with 10.66% of sales seeing price cuts (up from 10.14% the previous year). However, this is not the same as an overall decline in prices, and Trulia data scientist Mark Uh explains, "We are not arguing that home prices have been declining. It could be that landlords and sellers listed their properties too high the first time around. Perhaps it’s taking property owners a bit longer to sell or rent than you thought." The cuts could also be a sign that sellers and landlords are simply testing how high the market will go, and adjusting down from there. Still, Trulia found that in every month this past year, the share of listings with price cuts was higher than the same time the year before. (Forbes)
Prices in Australian Cities Hit by Resources Slowdown Are Nearing Their Bottom
The struggling markets in Australia’s so-called resource towns may be nearing their bottom, according to the new National Property Clock from Herron Todd White, which shows Perth, Darwin, Alice Springs, Gladstone, Mackay, and Rockhampton all nearing the bottom of the market, with Bundaberg, Emerald, South West Western Australia, and Townsville already having hit bottom. Of the areas that are on the rebound, Tasmania led the charge with an 11.2% rise in prices year-over-year. Hobart, Burnie, Devonport, and Launceston were also on the list of areas with prices now trending upward. (news.com.au)