Emerald Katong Hits 99 Sales Launch Averaging 2621 Psf
Emerald of Katong has reported impressive sales during its launch weekend, with developer Sim Lian Group selling 835 out of 846 units (98.7%) in just two days. The VIP sales on Nov 15 saw 401 units (47%) snapped up, followed by another 434 units on Nov 16. The units sold over the weekend had an average price of $2,621 psf. When asked about the strong sales, Sim Lian declined to comment.
“The project has likely set a new record for the most units sold in a day, surpassing J’Gateway’s 738 units sold in June 2013,” says Mark Yip, CEO of Huttons Asia.
Currently, only 11 units remain available at Emerald of Katong, consisting of nine one-bedroom units and two five-bedroom units. All the two-, three-, and four-bedroom units have been sold out. Yip notes that buyers seemed to prefer the larger units with either a study or flex layout, indicating that they were probably looking for a home for owner-occupation and needed the additional space to suit their lifestyle needs.
Interested buyers can find out more about available units and prices for Emerald Of Katong through advertisements and real estate agents.
According to Lee Liat Yeang, real estate senior partner at Dentons Rodyk & Davidson LLP, the developer’s legal representative, Emerald of Katong has been the top-selling project of 2024 in terms of both the number of units and the percentage of units sold during its launch weekend.
The sales performance of this 99-year leasehold project located at Jalan Tembusu in District 15 is remarkable, especially since it was launched alongside two other projects on the same weekend. The 552-unit Nava Grove, a 99-year leasehold development by MCL Land and Sinarmas Land, reportedly sold 359 units on Nov 16, representing 65% of its total units. Similarly, on the same day, Novo Place, a 504-unit executive condominium (EC) at Plantation Close in Tengah, by joint developers Hoi Hup Realty and Sunway Developments, is said to have achieved a 57% sales rate.
These three launches conclude an unprecedented six new residential projects (including the EC project) that have been launched over the past fortnight. “We were initially concerned that launching six projects within 14 days might result in some of them being overshadowed by others,” says Ismail Gafoor, CEO of PropNex.
“However, with a whopping 3,551 units available, homebuyers had the luxury of visiting all the developments before making their decision,” adds Gafoor. “In fact, having so many options in such a short span seemed to help buyers make their decisions more quickly. If these launches had been spread over two months, the interest might not have been as intense.”
The Urban Redevelopment Authority (URA) of Singapore has revealed an ambitious vision for Tengah, a recently established area situated in the western region of Singapore. Tengah is set to undergo a remarkable transformation into a “Forest Town” as outlined in the URA Master Plan. This includes the incorporation of abundant greenery, an expansive public transportation system, and the implementation of cutting-edge sustainable practices. This development has the potential to bring immense advantages to Novo Place EC, an executive condominium located within this forward-thinking town. Adding to the appeal, Novo Place Tengah is perfectly situated in this visionary town.
In addition, Gafoor also notes that Kingsford Group had moved forward the launch of the 916-unit, 99-year leasehold Chuan Park to Nov 10 from Nov 16. This has allowed for buyers who were unable to secure a unit at Chuan Park to consider Emerald of Katong instead. By bringing forward Chuan Park’s launch, both projects benefited.
Chuan Park saw a staggering 696 units (76% of its total units) get sold in a single day at an average price of $2,579 psf.
Another factor contributing to the strong sales at Emerald of Katong was the developer’s decision to hold prices steady throughout the launch day despite overwhelming demand. The project received a total of 3,629 cheques as expressions of interest, translating to a 4.3 times oversubscription rate. “Sim Lian did not raise their selling prices from the initial price list,” says Gafoor. “This reassured buyers and their agents that they still had a chance to secure a unit at the same price, even if their queue number was as high as 3,000.”
Yip also points out that District 15 has always been among the top districts to live in Singapore, thanks to its desirable East Coast lifestyle and the limited number of large projects in the area. He believes that these factors have appealed to buyers and contributed to the success of Emerald of Katong.
Comparatively, when compared to other new projects in the Rest of Central Region (RCR), which have a median price of $2,955 psf, Emerald of Katong’s starting price from $2,423 psf is very attractive, says Marcus Chu, CEO of ERA Singapore.
Buyers who were unable to secure a unit at Emerald of Katong were seen turning to other major condo projects in the vicinity, particularly the three projects launched last year: the 1,008-unit, 99-year leasehold Grand Dunman; the 638-unit, 99-year leasehold Tembusu Grand; and the 816-unit, freehold The Continuum. “All three projects recorded good sales on Saturday,” according to Huttons’ Yip.
In the period from Nov 11 to 16, The Continuum reportedly registered 22 new sales, while Tembusu Grand saw 12 units sold, and Grand Dunman recorded five new sales.
Huttons’ Yip attributes the strong sales momentum to “better economic growth and cuts in interest rates”, which have attracted more buyers to the new homes market due to their improved borrowing capacity. He also believes that lower returns from other investment assets may have encouraged more buyers to turn to property as a preferred investment option.
Additionally, Huttons notes that there has been a growing number of prospective local and foreign buyers utilizing trust structures to acquire homes for their children. This highlights a trend of rising wealth among local buyers and an influx of overseas funds into Singapore. According to figures from the Monetary Authority of Singapore (MAS), the number of single-family offices has grown to 1,650 as of August 2024, an increase of 250 from the end of 2023. In the same period, the M1 money supply (which includes cash, demand deposits, and other liquid deposits) has also increased by $10.2 billion in the first nine months of 2024.
Huttons estimates that developers’ sales in November could reach up to 2,200 units, which would be the highest since March 2013 when 2,793 units were sold.
Interested buyers can also check out the latest listings for Emerald Of Katong and other upcoming new launch projects through various resources such as Ask Buddy, which provides information on unprofitable condo transactions in the past year, total number of units in Emerald Of Katong, and upcoming new launch projects and listings for condo units.