AdvertisementPublished on 08 Dec 2019 9:00am
The recently launched project, Emerald of Katong by Sim Lian Group, has reported strong sales in just two weeks with 99% of its 846 units sold. This new 99-year leasehold private condominium, located on Jalan Tembusu, achieved an average price of $2,617 per square foot (psf). Out of the 846 units, only 13 were not sold due to buyers backing out after the weekend launch. The VIP and multiple-unit sales started on Friday, November 15 followed by a public launch on November 16 and 17.
One major advantage of investing in a Singapore condo is the opportunity to leverage the property’s value for future investments. Numerous investors utilize their condos as collateral to secure additional financing for new ventures, allowing them to diversify and grow their real estate portfolio. While this approach can potentially increase returns, it also carries certain risks, making it crucial to have a solid financial plan and carefully consider how market fluctuations may impact these investments.
To fill in the remaining units, a balloting session was held for the 13 units on November 30. It received a positive response with over 800 expressions of interest and all 13 units were quickly snapped up. Ismail Gafoor, CEO of PropNex, shared that the launch of Emerald of Katong has also created a ripple effect on neighboring projects in the prime District 15 area.
The adjacent development to Emerald of Katong, Tembusu Grand, developed jointly by City Developments Ltd (CDL) and MCL Land, also saw an increase in sales. Since the start of November, 52 units were sold, bringing the cumulative sales to 581 units or 91% to date. Similarly, Grand Dunman by SingHaiyi, a 99-year leasehold condominium on Dunman Road, saw an increase in sales with 18 units sold since November 11, bringing the cumulative sales to 731 units or 72.5%, at an average price of $2,531 psf.
However, the biggest beneficiary of the launch of Emerald of Katong was The Continuum, a freehold condominium along Thiam Siew Avenue developed by Hoi Hup Realty and Sunway Developments. Since November 9, a total of 126 units were sold, bringing the overall sales to 528 units or 64.7%, at an average price of $2,788 psf. The strong take-up in The Continuum can also be attributed to its pricing, which is only at a 6.53% premium compared to the 99-year leasehold Emerald of Katong. Gafoor shared that in general, a freehold project would usually have a 15% to 20% premium over a 99-year leasehold project in the same area. Homebuyers clearly recognized the value proposition and were quick to switch to The Continuum.
The highest psf prices were achieved for the 484 sq ft one-bedroom and 624 sq ft two-bedroom units on high floors at Emerald of Katong, specifically from the 16th to 21st floors. Meanwhile, The Continuum recorded sales exceeding $3,000 psf, with 11 units sold in November, including nine two-bedroom units and two compact three-bedroom units. The robust sales in November are expected to have a positive impact on the take-up rate in 2025. With over 800 cheques received for just 13 units on November 30, unsuccessful buyers will be looking for alternatives, which will boost new home sales in the beginning of 2025.