Real Estate
The price of fame
Global celebrities are lending their star power to luxury residences around the world From Manila to Mainland China, some of the region’s biggest property developers have been tapping the magic of famous celebrities to help market their latest products. Collaborations between famous personalities and brands to promote products is of course nothing new, but celebrity involvement in the real estate market has become a noticeable trend in recent years. “It’s an effective advertising tool,” says global property tycoon and billionaire Donald Trump. “These people are recognisable and that is valuable. It also personalises the product.” Marketing and selling real estate is never an easy task. Similarly, purchasing a high-end property is no small matter even for the moneyed, so it probably helps when a project has a familiar name that potential consumers can relate to before they make that purchase. “Celebrity endorsers, nowadays, fulfil a function very similar to that in the past,” notes Michael Prieler, associate professor in the School of Communication at Hallym University in South Korea, who has done extensive research on media content and social phenomena across Asia and the United States. “First of all, they attract attention, and secondly, they have a certain image that products want to benefit from. In other words, a likeable celebrity who has the image of a luxury lifestyle might be used for an advertisement for luxury homes in the hope that his or her image transfers to the product,” he explains. “In the age of social media, however, celebrities are ever more present, which makes them even more important and effective.” But what makes a celebrity qualified to endorse a real estate product? After all, fame and name recall alone is not a sure-fire recipe to successfully market a product. “It’s personalising a product or a place. The top qualities [of an endorser]would be to embody what the product promises,” according to Trump. “In my case, we are a luxury brand and I have a lifestyle that indicates affluence and quality. It’s a good match and it works. I’ve been very successful with branding and making the brand clear as well as specific is important to consider. A brand ambassador is representing the brand and must be aware of that at all times.” Trump himself is currently endorsing several properties in Asia, although he is not actually a stakeholder. These include the Trump Towers in Manila, Philippines and Pune, India, and a luxury residential development in the United Arab Emirates, DAMAC Properties’ Trump Golf International Dubai, which is set to open in late 2015. Branded developments, on average, get higher premiums than non-branded properties. According to an analysis by property advisory firm Knight Frank, such properties are priced 31 percent higher than non-branded counterparts. There are other developers that have entered into licensing agreements with established names like Trump, but others have opted for a different approach. “The nature of endorsements vary depending on a developer’s requirements,” according to Henry Barrameda, public relations manager for projects at one of the leading luxury developers in the Philippines, Century Properties, which partnered with American socialite Paris Hilton for its Paris Beach Club project inside the Century City master development in Makati. “Some tap celebrities as spokespersons so they are asked to go the rounds of social media and mainstream media, while others are merely faces to represent the brand,” he says. “There are also others who take on a more entrenched role in the development, such as Ms Hilton with the Azure Urban Resorts Residences. She was actively involved in the Paris Beach Club’s design. In this way, she has a relatively deeper stake in the development.” Hilton agrees: “I travelled all around the world. I’ve been to the most incredible places—Ibiza, South of France, Fiji—so I basically took all my favourite aspects out of all those different locations and put it all in the Paris Beach Club.” Elsewhere in the region, Kuala Lumpur developer Alpine Return Sdn Bhd had taken a different approach. The 50:50 joint venture company, which is backed by Symphony Life Berhad (previously known as Bolton Berhad) and United Malayan Land Berhad (UM Land) has selected world-renowned designer Jimmy Choo as brand ambassador for its upscale, mixed-use Star Development project in the Malaysian capital. It did not license the celebrity’s name during the designing stage; instead, Choo was asked to look at the under-construction property, and this, supposedly, convinced him to endorse it. “Jimmy Choo came by to view the property model; we extended an invitation to him to be Star Development’s ambassador and very kindly, he obliged,” says Alan Koh, chief operating officer at Alpine Return. “It was not easy to find the right person to be our ambassador, but it all fell into place quite naturally.” The 65-year-old Malaysian-born designer, who is now based in the United Kingdom, is an “excellent example of a celebrity endorsement,” according to Professor Prieler. “He is not only a famous celebrity, he also symbolises other characteristics: he is trustworthy; he has an expertise—after all, he is a famous designer, so he should know if a luxury home is well-made—and he is highly respected. Even people who have achieved a lot in their own lives still respect him for his unique success abroad. And last but not least, he resembles some members of the target audience, especially the older ones.” In certain markets, such as Japan, luxury products like luxury residences are usually endorsed by older male celebrities, who give a certain amount of integrity. “Age certainly plays a role, especially depending on the target group of the advertisements,” Professor Prieler says. “Older celebrities are more credible in promoting luxury products and can also be admired by younger as well as older people, while some younger celebrities have credibility issues with older consumers.” In Greater China, one of the biggest real estate markets today, older male endorsers also tend to be more common. “There are specific images in the endorsers that are sought that are gender-specific. For men, it tends to be suave, mature men in their 40s and 50s, like Jiang Wen, a director, and actors like Chen Daoming and Hong Kong star Tony Leung,” says Jessica Lu, an analyst at China Market Research Group (CMR). Leung, for instance, was hired by the Shimao Group to promote its deluxe apartment complex called the Shimao Riviera Garden, which was also marketed to US buyers. “For women, the image tends to be someone who is successful on the one hand but on the other is also known for having a kind, virtuous image,” says Lu. “In both cases, though, it’s necessary that the endorser has a reputation for having a loving family.” Trump Towers Manila, Century City “Developers have used celebrities to promote their properties for some time now, but the main difference lately has been in how they have used stars,” adds Lu. “Ten to twenty years ago, when having celebrity endorsers was newer, only one or maybe two properties in a single city were endorsed, which made those developments stand out more. It was a clear signal of the prestige of a residence, and you saw effective use of slogans like ‘Be a neighbour of Jet Li’, for example.” High-end developments in China’s Tier 1 cities like Shanghai and Beijing are usually endorsed by world-famous names, such as crossover Chinese stars Jackie Chan and Zhang Ziyi, as well as top Hollywood actors like Matt Damon or Leonardo DiCaprio. In comparison, Lu notes that Tier 2 cities generally use regional stars for endorsement deals. A different case has been observed in some parts of Southeast Asia. In a recent study conducted in the Philippines, it was found that while a similar numbers of male and female celebrities put their names to properties around the region, luxury homes in the Philippines tend to be represented by big-name females. “Perhaps we can say it is because both genders generally respond positively to females,” says Century Property’s Barrameda. Azure Urban Resorts Residences Within two months of the announcement of Hilton’s involvement with Azure, property consultancy firm Colliers International data showed that sales of the surrounding residential properties in Century City grew by 10 percent, demonstrating the huge appeal of celebrity endorsers in the country. In fact, 74 percent of property buyers in the Philippines are most likely to invest in a celebrity-affiliated development, based on a recent report by Nielsen Global Luxury Brands. Meanwhile, in other parts of Southeast Asia, celebrities who gained fame via television programmes had been tapped to attract a wide audience. In the early 2000s, Nigel Cornick, former chief executive officer of Thai luxury developer Raimon Land PCL, teamed up with the Orchestra Group to produce the mini-television reality series called Superstar as part of the promotion for The Lofts Yennakart luxury condominium project in Bangkok. The show, which crowned actor Akara “Gof” Amarttayakul as the winner (he was given a two-bedroom unit at the development as a prize), was widely successful. But Cornick, who is now at the helm of Kingdom Property, says that these days he would only consider hiring star endorsers if the project is genuinely in need of it. “I was the first person who started it in 2007 when I sponsored the Superstar reality television series,” he says. “It’s all a question of the product: how you market it, how you package it. Whenever I need superstars, trust me, I can find them. But it’s got to make sense. I would have brand ambassadors relative to customers who might buy the product.” The Veo, Kuala Lumpur Seemingly taking a page from Cornick’s strategy, Malaysia’s Sime Darby Properties sponsored its own reality series in late 2012 called The Apartment: Style Edition, where eight couples from the Asia-Pacific region were tasked to create stylish living spaces at The Veo luxury condominiums in Desa Melawati. The show was a hit with audiences, and the winning couple, Phillipe Estiot and Iva Agüero, known as ‘Team Dali’, was awarded their own residential unit. “Many celebrities project the image of having a different and special life, which agencies try to transfer to the image of the product [that they’re promoting], and so that increases the value of the product,” according to Professor Prieler. “If there is a match between the celebrity and the product, such as real estate, celebrities can be an excellent way to advertise that product.” WHO’S WHO: A snapshot at some of the world’s best-known celebrities with ties to real estate Paris Hilton The heiress of the iconic Hilton brand went to Manila in 2012 to closely work with local master developer Century Properties in the design and conceptualisation of the Azure Urban Resort Residences. “I really love the concept of Azure because I thought of how cool it is in the middle of the city to have a man-made beach that is so beautiful and breathtaking. If I lived in the Philippines, I would definitely live in Azure,” she announced in early 2014 at the inauguration of the multi-level Paris Beach Club, “This is probably the one project I’m most proud about because real estate is something that runs in my blood.” Donald Trump Trump’s empire includes luxury developments, television shows and beauty pageants. When asked if he would consider hiring one of the contestants in the reality television show The Celebrity Apprentice to endorse his real estate ventures, he said, “There are many who have great talent but the Trump brand doesn’t need any endorsement outside of our name and family. The Trump brand is instantly recognisable worldwide.” Trump, through The Trump Organization, licenses his name to several luxury real estate products worldwide wherein he doesn’t own a stake, but in which he believes. Examples of these are the Trump Golf International Dubai, which is owned and developed by DAMAC Properties, and Trump Tower Manila, the luxury apartments from Century Properties. Sarah Jessica Parker The main star and executive producer of the hit HBO series Sex and the City, Sarah Jessica Parker was the muse of SM Aura Premier, the first luxury shopping complex inside Bonifacio Global City from the Philippines largest mall developer, SM Prime Holdings. Reminiscent of her television character Carrie Bradshaw’s love for shopping and designer brands, Parker was the face of the mall’s ‘Love to Shop’ campaign and she cut the ribbon of The SM Store when it was inaugurated in May 2013. The Hollywood star also graced several billboards and commercials to promote the project. “It’s probably the last 10 to 12 years of my association with fashion, my rather public proclamation about my affection with fashion, and the idea of this store, and everything that it offers and the beauty and fantasy inside the doors—the enormous, incredible shoe department,” the then 47-year-old Parker told media. Anne Curtis Named by TIME Magazine as one of the smartest celebrities on Twitter, actress, television personality and model Anne Curtis used to be the face of SM Residences, one of the biggest condominium developers in her home country the Philippines. During her stint as brand ambassador, her endorsement slogans carried the tagline, ‘Live like a star’. Curtis’ involvement helped popularise the brand across all segments. Jimmy Choo Malaysian-born luxury women’s shoes designer Jimmy Choo, who gained global fame in the late 1990s, has been described by media and communications Professor Prieler of Hallym University as the perfect celebrity to endorse the luxury condominium Star Residences in Kuala Lumpur. He can relate to the target buyers, and his name is closely affiliated with luxury products. During his formal induction as spokesperson for Star Development, he said: “I am honoured to be the ambassador and it is such a privilege to be a partner with Star Development. I am excited to experience the chic lifestyle at Star Development and can hardly wait for it to make its presence felt as an international landmark.” RISING STARS These current developments across Asia hope to drive global interest with the aid of their celebrity brand ambassadors Trump Tower Manila Philippines Set to be completed in 2016, the 61-storey luxury apartment tower in Makati is the first-ever development to be endorsed by The Trump Organization in the Philippines. With a development cost of PHP150 million (USD3.35 million) the residential skyscraper has been appealing to the interest—and bank accounts—of local investors, as majority of units have already been sold to affluent Filipino buyers, according to Century City Development Corporation, the developer. Fame factor: Donald Trump, business tycoon and television personality The District Em Thailand The revamped and expanded Emporium district, which is set to hold its star-studded inaugural party in March 2015, will comprise the original The Emporium Mall, which specialises in luxury and designer brands, plus the upcoming The EmQuartier and The EmSphere, dubbed the newest world-class commercial and entertainment district in the Kingdom. The owners and operators of the commercial hub, The Emporium Group, vows to make the opening next year to be an ultra-glamorous event to represent the quality of the development, including a special appearance by the celebrated founder of the Virgin Group. Celebrity push: Sir Richard Branson, British business magnate Signa Designer Residences, Makati Philippines Under the Robinson’s Luxuria brand, Signa Designer Residences is a tropical-inspired residential tower designed by the famed Royal Pineda architects and the interiors were handled by interior designer Budji Layug and internationally acclaimed industrial designer Kenneth Cobonpue. The Makati-based project is the company’s first-ever branded residential development and will be completed in 2017. Brand ambassador: Maja Salvador, singer and actress Star Residences, Kuala Lumpur Malaysia This three-tower luxury residential project in Kuala Lumpur was launched in November 2013 and is expected to be completed in the second quarter of 2019. Featuring Malaysia’s first Star Walk of Fame attraction that stretches some 200 metres and a posh Sky Park, the contemporary urban development aims to lure other local and international celebrities via Choo’s vote of confidence. Last September, the renowned women’s shoe designer promoted the property through various media interviews in Malaysia and Singapore. Star power: Jimmy Choo, luxury shoe designer Qingdao Oriental Movie Metropolis China In September 2013, Dalian Wanda Group, the empire owned and headed by China’s wealthiest man Wang Jianglin, invited several A-list movie stars from all over the world to support the grand opening of the Oriental Movie Metropolis in Qingdao, which will become fully operational by mid-2017. The attendance of the world’s biggest stars represented the vision of Jianglin to make the 376-hectare Qingdao property the next Hollywood, with plans to produce 130 movies per year, including 30 foreign films. Amenities include a permanent underwater stage, a theme park, and 10,000 sqm studio pavilion. A-list support: Hollywood celebrities, including Nicole Kidman, John Travolta and Leonardo DiCaprio
Global celebrities are lending their star power to luxury residences around the world
From Manila to Mainland China, some of the region’s biggest property developers have been tapping the magic of famous celebrities to help market their latest products.
Collaborations between famous personalities and brands to promote products is of course nothing new, but celebrity involvement in the real estate market has become a noticeable trend in recent years.
“It’s an effective advertising tool,” says global property tycoon and billionaire Donald Trump. “These people are recognisable and that is valuable. It also personalises the product.”
Marketing and selling real estate is never an easy task. Similarly, purchasing a high-end property is no small matter even for the moneyed, so it probably helps when a project has a familiar name that potential consumers can relate to before they make that purchase.
“Celebrity endorsers, nowadays, fulfil a function very similar to that in the past,” notes Michael Prieler, associate professor in the School of Communication at Hallym University in South Korea, who has done extensive research on media content and social phenomena across Asia and the United States.
“First of all, they attract attention, and secondly, they have a certain image that products want to benefit from. In other words, a likeable celebrity who has the image of a luxury lifestyle might be used for an advertisement for luxury homes in the hope that his or her image transfers to the product,” he explains. “In the age of social media, however, celebrities are ever more present, which makes them even more important and effective.”
But what makes a celebrity qualified to endorse a real estate product? After all, fame and name recall alone is not a sure-fire recipe to successfully market a product.
“It’s personalising a product or a place. The top qualities [of an endorser]would be to embody what the product promises,” according to Trump. “In my case, we are a luxury brand and I have a lifestyle that indicates affluence and quality. It’s a good match and it works. I’ve been very successful with branding and making the brand clear as well as specific is important to consider. A brand ambassador is representing the brand and must be aware of that at all times.”
Trump himself is currently endorsing several properties in Asia, although he is not actually a stakeholder. These include the Trump Towers in Manila, Philippines and Pune, India, and a luxury residential development in the United Arab Emirates, DAMAC Properties’ Trump Golf International Dubai, which is set to open in late 2015.
Branded developments, on average, get higher premiums than non-branded properties. According to an analysis by property advisory firm Knight Frank, such properties are priced 31 percent higher than non-branded counterparts.
There are other developers that have entered into licensing agreements with established names like Trump, but others have opted for a different approach.
“The nature of endorsements vary depending on a developer’s requirements,” according to Henry Barrameda, public relations manager for projects at one of the leading luxury developers in the Philippines, Century Properties, which partnered with American socialite Paris Hilton for its Paris Beach Club project inside the Century City master development in Makati.
“Some tap celebrities as spokespersons so they are asked to go the rounds of social media and mainstream media, while others are merely faces to represent the brand,” he says. “There are also others who take on a more entrenched role in the development, such as Ms Hilton with the Azure Urban Resorts Residences. She was actively involved in the Paris Beach Club’s design. In this way, she has a relatively deeper stake in the development.”
Hilton agrees: “I travelled all around the world. I’ve been to the most incredible places—Ibiza, South of France, Fiji—so I basically took all my favourite aspects out of all those different locations and put it all in the Paris Beach Club.”
Elsewhere in the region, Kuala Lumpur developer Alpine Return Sdn Bhd had taken a different approach. The 50:50 joint venture company, which is backed by Symphony Life Berhad (previously known as Bolton Berhad) and United Malayan Land Berhad (UM Land) has selected world-renowned designer Jimmy Choo as brand ambassador for its upscale, mixed-use Star Development project in the Malaysian capital. It did not license the celebrity’s name during the designing stage; instead, Choo was asked to look at the under-construction property, and this, supposedly, convinced him to endorse it.
“Jimmy Choo came by to view the property model; we extended an invitation to him to be Star Development’s ambassador and very kindly, he obliged,” says Alan Koh, chief operating officer at Alpine Return. “It was not easy to find the right person to be our ambassador, but it all fell into place quite naturally.”
The 65-year-old Malaysian-born designer, who is now based in the United Kingdom, is an “excellent example of a celebrity endorsement,” according to Professor Prieler. “He is not only a famous celebrity, he also symbolises other characteristics: he is trustworthy; he has an expertise—after all, he is a famous designer, so he should know if a luxury home is well-made—and he is highly respected. Even people who have achieved a lot in their own lives still respect him for his unique success abroad. And last but not least, he resembles some members of the target audience, especially the older ones.”
In certain markets, such as Japan, luxury products like luxury residences are usually endorsed by older male celebrities, who give a certain amount of integrity.
“Age certainly plays a role, especially depending on the target group of the advertisements,” Professor Prieler says. “Older celebrities are more credible in promoting luxury products and can also be admired by younger as well as older people, while some younger celebrities have credibility issues with older consumers.”
In Greater China, one of the biggest real estate markets today, older male endorsers also tend to be more common. “There are specific images in the endorsers that are sought that are gender-specific. For men, it tends to be suave, mature men in their 40s and 50s, like Jiang Wen, a director, and actors like Chen Daoming and Hong Kong star Tony Leung,” says Jessica Lu, an analyst at China Market Research Group (CMR).
Leung, for instance, was hired by the Shimao Group to promote its deluxe apartment complex called the Shimao Riviera Garden, which was also marketed to US buyers.
“For women, the image tends to be someone who is successful on the one hand but on the other is also known for having a kind, virtuous image,” says Lu. “In both cases, though, it’s necessary that the endorser has a reputation for having a loving family.”
“Developers have used celebrities to promote their properties for some time now, but the main difference lately has been in how they have used stars,” adds Lu. “Ten to twenty years ago, when having celebrity endorsers was newer, only one or maybe two properties in a single city were endorsed, which made those developments stand out more. It was a clear signal of the prestige of a residence, and you saw effective use of slogans like ‘Be a neighbour of Jet Li’, for example.”
High-end developments in China’s Tier 1 cities like Shanghai and Beijing are usually endorsed by world-famous names, such as crossover Chinese stars Jackie Chan and Zhang Ziyi, as well as top Hollywood actors like Matt Damon or Leonardo DiCaprio. In comparison, Lu notes that Tier 2 cities generally use regional stars for endorsement deals.
A different case has been observed in some parts of Southeast Asia. In a recent study conducted in the Philippines, it was found that while a similar numbers of male and female celebrities put their names to properties around the region, luxury homes in the Philippines tend to be represented by big-name females.
“Perhaps we can say it is because both genders generally respond positively to females,” says Century Property’s Barrameda.
Within two months of the announcement of Hilton’s involvement with Azure, property consultancy firm Colliers International data showed that sales of the surrounding residential properties in Century City grew by 10 percent, demonstrating the huge appeal of celebrity endorsers in the country.
In fact, 74 percent of property buyers in the Philippines are most likely to invest in a celebrity-affiliated development, based on a recent report by Nielsen Global Luxury Brands. Meanwhile, in other parts of Southeast Asia, celebrities who gained fame via television programmes had been tapped to attract a wide audience.
In the early 2000s, Nigel Cornick, former chief executive officer of Thai luxury developer Raimon Land PCL, teamed up with the Orchestra Group to produce the mini-television reality series called Superstar as part of the promotion for The Lofts Yennakart luxury condominium project in Bangkok. The show, which crowned actor Akara “Gof” Amarttayakul as the winner (he was given a two-bedroom unit at the development as a prize), was widely successful. But Cornick, who is now at the helm of Kingdom Property, says that these days he would only consider hiring star endorsers if the project is genuinely in need of it.
“I was the first person who started it in 2007 when I sponsored the Superstar reality television series,” he says. “It’s all a question of the product: how you market it, how you package it. Whenever I need superstars, trust me, I can find them. But it’s got to make sense. I would have brand ambassadors relative to customers who might buy the product.”
Seemingly taking a page from Cornick’s strategy, Malaysia’s Sime Darby Properties sponsored its own reality series in late 2012 called The Apartment: Style Edition, where eight couples from the Asia-Pacific region were tasked to create stylish living spaces at The Veo luxury condominiums in Desa Melawati. The show was a hit with audiences, and the winning couple, Phillipe Estiot and Iva Agüero, known as ‘Team Dali’, was awarded their own residential unit.
“Many celebrities project the image of having a different and special life, which agencies try to transfer to the image of the product [that they’re promoting], and so that increases the value of the product,” according to Professor Prieler.
“If there is a match between the celebrity and the product, such as real estate, celebrities can be an excellent way to advertise that product.”
WHO’S WHO:
A snapshot at some of the world’s best-known celebrities with ties to real estate
Paris Hilton
The heiress of the iconic Hilton brand went to Manila in 2012 to closely work with local master developer Century Properties in the design and conceptualisation of the Azure Urban Resort Residences.
“I really love the concept of Azure because I thought of how cool it is in the middle of the city to have a man-made beach that is so beautiful and breathtaking. If I lived in the Philippines, I would definitely live in Azure,” she announced in early 2014 at the inauguration of the multi-level Paris Beach Club, “This is probably the one project I’m most proud about because real estate is something that runs in my blood.”
Donald Trump
Trump’s empire includes luxury developments, television shows and beauty pageants. When asked if he would consider hiring one of the contestants in the reality television show The Celebrity Apprentice to endorse his real estate ventures, he said, “There are many who have great talent but the Trump brand doesn’t need any endorsement outside of our name and family. The Trump brand is instantly recognisable worldwide.”
Trump, through The Trump Organization, licenses his name to several luxury real estate products worldwide wherein he doesn’t own a stake, but in which he believes. Examples of these are the Trump Golf International Dubai, which is owned and developed by DAMAC Properties, and Trump Tower Manila, the luxury apartments from Century Properties.
Sarah Jessica Parker
The main star and executive producer of the hit HBO series Sex and the City, Sarah Jessica Parker was the muse of SM Aura Premier, the first luxury shopping complex inside Bonifacio Global City from the Philippines largest mall developer, SM Prime Holdings. Reminiscent of her television character Carrie Bradshaw’s love for shopping and designer brands, Parker was the face of the mall’s ‘Love to Shop’ campaign and she cut the ribbon of The SM Store when it was inaugurated in May 2013.
The Hollywood star also graced several billboards and commercials to promote the project. “It’s probably the last 10 to 12 years of my association with fashion, my rather public proclamation about my affection with fashion, and the idea of this store, and everything that it offers and the beauty and fantasy inside the doors—the enormous, incredible shoe department,” the then 47-year-old Parker told media.
Anne Curtis
Named by TIME Magazine as one of the smartest celebrities on Twitter, actress, television personality and model Anne Curtis used to be the face of SM Residences, one of the biggest condominium developers in her home country the Philippines. During her stint as brand ambassador, her endorsement slogans carried the tagline, ‘Live like a star’. Curtis’ involvement helped popularise the brand across all segments.
Jimmy Choo
Malaysian-born luxury women’s shoes designer Jimmy Choo, who gained global fame in the late 1990s, has been described by media and communications Professor Prieler of Hallym University as the perfect celebrity to endorse the luxury condominium Star Residences in Kuala Lumpur. He can relate to the target buyers, and his name is closely affiliated with luxury products.
During his formal induction as spokesperson for Star Development, he said: “I am honoured to be the ambassador and it is such a privilege to be a partner with Star Development. I am excited to experience the chic lifestyle at Star Development and can hardly wait for it to make its presence felt as an international landmark.”
RISING STARS
These current developments across Asia hope to drive global interest with the aid of their celebrity brand ambassadors
Trump Tower Manila
Philippines
Set to be completed in 2016, the 61-storey luxury apartment tower in Makati is the first-ever development to be endorsed by The Trump Organization in the Philippines. With a development cost of PHP150 million (USD3.35 million) the residential skyscraper has been appealing to the interest—and bank accounts—of local investors, as majority of units have already been sold to affluent Filipino buyers, according to Century City Development Corporation, the developer.
Fame factor: Donald Trump, business tycoon and television personality
The District Em
Thailand
The revamped and expanded Emporium district, which is set to hold its star-studded inaugural party in March 2015, will comprise the original The Emporium Mall, which specialises in luxury and designer brands, plus the upcoming The EmQuartier and The EmSphere, dubbed the newest world-class commercial and entertainment district in the Kingdom. The owners and operators of the commercial hub, The Emporium Group, vows to make the opening next year to be an ultra-glamorous event to represent the quality of the development, including a special appearance by the celebrated founder of the Virgin Group.
Celebrity push: Sir Richard Branson, British business magnate
Signa Designer Residences, Makati
Philippines
Under the Robinson’s Luxuria brand, Signa Designer Residences is a tropical-inspired residential tower designed by the famed Royal Pineda architects and the interiors were handled by interior designer Budji Layug and internationally acclaimed industrial designer Kenneth Cobonpue. The Makati-based project is the company’s first-ever branded residential development and will be completed in 2017.
Brand ambassador: Maja Salvador, singer and actress
Star Residences, Kuala Lumpur
Malaysia
This three-tower luxury residential project in Kuala Lumpur was launched in November 2013 and is expected to be completed in the second quarter of 2019. Featuring Malaysia’s first Star Walk of Fame attraction that stretches some 200 metres and a posh Sky Park, the contemporary urban development aims to lure other local and international celebrities via Choo’s vote of confidence. Last September, the renowned women’s shoe designer promoted the property through various media interviews in Malaysia and Singapore.
Star power: Jimmy Choo, luxury shoe designer
Qingdao Oriental Movie Metropolis
China
In September 2013, Dalian Wanda Group, the empire owned and headed by China’s wealthiest man Wang Jianglin, invited several A-list movie stars from all over the world to support the grand opening of the Oriental Movie Metropolis in Qingdao, which will become fully operational by mid-2017. The attendance of the world’s biggest stars represented the vision of Jianglin to make the 376-hectare Qingdao property the next Hollywood, with plans to produce 130 movies per year, including 30 foreign films. Amenities include a permanent underwater stage, a theme park, and 10,000 sqm studio pavilion.
A-list support: Hollywood celebrities, including Nicole Kidman, John Travolta and Leonardo DiCaprio
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The price of fame
Real Estate
Miami – A Great Place to Buy Real Estate
Miami has evolved into a cosmopolitan wonder city under the sun. Famous for its great beaches, this city has also earned a reputation of being a sexy, marvelous and trendy place to live. From amazing golf courses like the one at Crandon Park in Key Biscayne to the Miami Metro Zoo, this beautiful city has something to offer to everyone. Owning a piece of paradise is a dream within reach of locals and foreigners as well. People from all parts of the world have already taken advantage of the great opportunities available today in the marketplace.
Miami has some of the most amazing real estate developments like the astonishing Santa Maria located in Brickell, or the unbelievable towers of Icon Brickell. Some other exclusive and impressive Miami condos include, the Jade at Brickell, the 900 Biscayne in downtown Miami, the fabulous Trump Palace in Sunny Isles Beach and the astonishing Icon South Beach just to name a few. These modern Miami luxury condos have all the comforts and amenities only found in five star hotels.
The city of Miami has it all, great golf, amazing beaches, a turquoise beautiful ocean, a warm weather, excellent shopping, an electrifying night life, lots concerts, entertainment and sports events at the famous America Airlines Arena in downtown Miami.
Miami real estate buyers are as diverse as the city culture and population itself. Buyers come from all over the globe, Europeans, Latin Americans, and Asians and of course buyers from all around the United States. Some have chosen this beautiful city to have a second home and some have fallen in love so much that they now call Miami their home making it an exciting melting pot to live in.
Real Estate
Real Estate Investor's Secret Weapon
Real Estate Investors have a unique tool in their arsenal that other types of investors do not. One of the oldest tax code sections is 1031. This secret weapon is called a 1031 exchange. It is one of the few areas of the tax code where the US Government allows taxpayers to sell an asset and not immediately pay the taxes. Even State taxes are deferred. The way a 1031 Exchange works is simple. If you sell piece (s) of investment property, and you are want to buy of another piece (s) of investment real estate of equal value, you can defer indefinitely all taxes (capital gains (15%), recapture tax (25% ) and state income tax). This is the benefit: by not having to pay those taxes, you can keep your money (instead of giving it to Uncle Sam) and smartly reinvest it for yourself to grow your real estate portfolio. 1031 is a free financial tool that let you keep 15-30% of taxes you would have had to pay. In the world of increasing taxes, 1031 is a viable alternative.
There are some guidelines that need to be followed, and I will break them down. First, what is investment real estate? Investment real estate is defined as property used in a trade or business. It could be used to run your office or it could be rental property. One of the nice flexible features of 1031 is that all real estate is exchangeable. This means that a home can be exchanged for a condo or a piece of land can be exchanged for a commercial property. I use the rule of thumb that any property with a deed can be exchanged for another property with a deed. The other nice feature is that you can sell one property and purchase more than one replacement property or vice versa.
There are three main rules that investors need to know about 1031 exchanges. First of all, you must use a Qualified Intermediary (an Independent Middleman) to help facilitate your 1031 exchange. The QI, as they are called will do many things including prepare the Exchange Agreement, Escrow your 1031 proceeds, and most importantly make the exchange go smoothly. The QI must be hired prior to the closing of the relinquished property. Secondly, the Exchangor (the person doing the exchange) has 45 days from the closing date of the relinquished property to identify the replacement property. Identification means to list (not go under contract) up to 3 properties of any value and send them to the QI. Finally, the Exchangor has 180 days (from the date closing on the relinquished property), to close on one of those three identified replacement properties.
I don't want to over simplify 1031. Please consult your tax advisor in addition to your Qualified Intermediary to analyze your exchange and to be sure you are making the best tax decision. I do believe the rule of thumb should be if you want to keep your money invested in real estate, then 1031 is a tool you must consider.
1031 can be a potent weapon for the smart real estate investor. There is nothing worse than having a client not consider 1031 or not have their real estate professional tell them about it and the relinquished real estate closes and the client changes their mind. After the relinquished property closes, it is too late to do an exchange. 1031 is an efficient tool for an investor to build their portfolio. Plan your transactions and watch your real estate fortune grow.
Dave Owens, CPA, CES is the managing Member of Entrust 1031 Exchange. Dave and his staff have successfully performed over 10,000 exchanges since 1997. Entrust has an arsenal of tax free strategies. Feel free to contact Dave for more information or questions at 239-333-1031 or owens66@entrustfreedom.com .
Source by Dave Owens
Real Estate
How to Become a Successful Real Estate Developer
Real estate investment and development has never been a more popular pastime or career changing challenge; if you would like to learn seven secrets for consistently successful real estate investing through development or you would like to know how you can continue to profit from property even if the market takes a downward turn just read on …
1) Do Your Location Homework – did you know that through successful and sustained location research professional property investors actually continue to profit during a market down turn? It's true – whatever the market conditions you can apply their location research approach to your real estate investments and also make consistent profits from property.
Take the necessary time to learn all about a town or city you're considering for your next property development purchase and discover where the up and coming areas of that town are likely to be. If there are inner-city redevelopment projects planned examine the real estate market in the immediate vicinity, if there are areas that are booming right now examine the immediate neighboring areas for their potential for future prices arises for example.
Do not follow the crowd – have the confidence to buck the trend and get ahead of the curve by positioning yourself in a market that is about to boom rather than one in that has already blossomed.
2) Know What You Can Afford – While it can pay to sometimes speculate never be tempted to jeopardize your own home. Work out your finances and be ruthlessly strict about what you can and can not afford as a down payment, for mortgage costs and for the renovation and redevelopment of your next real estate investment. Only proceed within the confines of your tightly allocated budget and do not be tempted to over extend yourself specifically if competition in the property market is tough and the market is slow or stagnant.
3) Identify Your Target Market – Having identified your next location for property investment identify the types of people who buy into renovated assets in that location. Know who your target market are going to be and what they are likely to look for in a property in that location. If for example you're examining inner-city spaces you might identify that your buyers will be young single professionals and that the ideal property type for these people will be luxury low maintenance apartments – seek out suitable properties with the potential for redevelopment into luxury low maintenance apartments and you will fulfill your target market's brief … seek out large homes with substantive gardens in the area and you will have totally missed the market and potentially created a property that will not sell!
4) Renovation Not Rebuild – Know your budget limits and your personal skill restrictions. Do not consider taking on a property that is in need of a complete structural overhaul when your budget is tight or you do not personally have the time, skills or inclining to do the structural work yourself. Be realistic about what you and your budget can achieve and seek properties that fulfil that brief. Pay to have an independent and complete survey done on any property you are seriously considering buying before making a down payment to ensure that there are no hidden surprises waiting for you benefit the floorboards to eat up your budget in its entity.
5) Manage Your Budget – With your survey in hand you can approach builders for statements and seek out prices for fixtures, fittings, finishes and furnishings. Take the prices quoted and sourced and build your budget. Factor in overwriting mortgage and service costs and labor costs as well as your findings and structure and allocate your money accordingly. Watch every single spend and be ruthlessly strict with yourself and your builder. If at all possible have your builder commit to a contract with fixed finish dates and fees and stay on top of every single penny or cent every single day. At the end of each week tally up your outgoings and expenditure and ensure you're not exceeding your budget. If you're overspending rein it in or you will have to shave it off other areas of the development. Remember never to scrimp and save on finishing touches and always give yourself a realistic fall back fund in case of emergencies.
6) Appeal To The Widest Market – Forget putting your personal stamp on any property you develop – you are not going to be living in the property! You should already have identified your target market which will give you a good idea of the level and quality of finish expected, now meet those expectations without adding your own personal taste into the equation. By appealing to the widest market or the lowest common denominator your property will be attractive to the majority of buyers making it faster and easier to sell on and profit from.
7) Make Friends With A Real Estate Agent – Your greatest ally when developing property will be your real estate agent. Make friends with these guys and you will build a beautiful and successful symbiotic relationship in which you both profit to the maximum! Real estate agents are a fountain of untapped knowledge about the local market, who is looking for what property in which area, which additional features cost little to add but which push up the asking price and what a buyer expects from your particular property type. Get the facts from your real estate agent and then apply their advice. You will create a property they can market for top dollar and to the widest market – you will make more profit and they will make a larger commission including a beautiful and lasting friendship!
Finally, remember that when you've bought, renovated and sold on you'll be looking for that next property opportunity and any real estate agent who you've worked with well will be on the hunt for suitable real estate for your next investment making any identical purchases that much easier to source.