When it comes to investing in condominiums in Singapore, it is important to consider the government’s property cooling measures. The Singaporean government has implemented various measures over the years to control the number of speculative buyers in the real estate market and maintain its stability. One of these measures, the Additional Buyer’s Stamp Duty (ABSD), imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market. This creates a safer investment environment for those looking to invest in a condo.
The newly launched Emerald of Katong has proved to be a success, with developer Sim Lian Group selling 98.7% of its units (835 out of 846) in just two days. The project’s VIP sales on Nov 15 saw 47% of its units (401) snapped up, followed by another 434 units sold on Nov 16. The average price of the units sold over the weekend was $2,621 per square foot (psf). Sim Lian Group declined to comment on its sales.
“This project could possibly hold the record for the most number of units sold in a day, surpassing J’Gateway’s 738 units sales in June 2013,” says Mark Yip, CEO of Huttons Asia.
There are only 11 units left available at Emerald of Katong, which include nine one-bedroom and two five-bedroom units. All two-, three-, and four-bedroom unit types have been sold out. “Buyers seem to prefer the larger units with a study or flex layout, as they are likely purchasing for owner-occupation and need the extra space to suit their lifestyle needs,” notes Yip.
To get the latest updates on available units and prices for Emerald Of Katong, check out the listings on Ask Buddy.
Emerald of Katong Sales Chart as of 9.30pm, Nov 16 (Sources: Real estate agents)
Emerald of Katong is not only the top-selling project of 2024 in terms of the number of units sold, but also in terms of the percentage sold during its launch weekend, according to Lee Liat Yeang, the real estate senior partner of Dentons Rodyk & Davidson LLP, the developer’s lawyers.
The impressive sales performance of the 99-year leasehold project at Jalan Tembusu in District 15 is particularly noteworthy, as it was launched at the same time as two other projects. The 552-unit Nava Grove, a 99-year leasehold development by MCL Land and Sinarmas Land, reportedly sold 65% of its units (359 out of 552) on Nov 16. On the same day, the 504-unit executive condominium (EC) project, Novo Place, located at Plantation Close in Tengah, developed by Hoi Hup Realty and Sunway Developments, is said to have achieved a 57% sales rate.
These three projects concluded an unprecedented period of six new residential project (including the EC project) launches over the past two weeks. “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 total of 3,551 units on offer, homebuyers had the opportunity to visit all the developments before making their decision on which one to buy.”
“It also helped that Kingsford Group moved forward the launch of the 916-unit, 99-year leasehold Chuan Park to Nov 10 from Nov 16,” adds Gafoor, noting that “those who were not able to secure a unit at Chuan Park had the opportunity to consider Emerald of Katong instead.” This move benefited both projects, as they did not have to compete with each other during the same launch weekend. Read also: Nava Grove achieves 65% sales on launch weekend at an average price of $2,448 psf
Chuan Park was equally successful, with 696 units (76%) sold in a single day at an average price of $2,579 psf.
Keeping prices steady
Another reason for the strong sales at Emerald of Katong was the developer’s decision to keep prices unchanged throughout the launch day, despite the overwhelming response. A total of 3,629 cheques were collected as expressions of interest, which meant that the project was 4.3 times oversubscribed. “Sim Lian did not raise their selling prices from the initial price list,” says Gafoor. “This reassured buyers 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.”
“Compared to other new projects in the RCR [Rest of Central Region], which have a median price of $2,955 psf, Emerald of Katong’s starting price of $2,423 psf is very attractive,” says Marcus Chu, CEO of ERA Singapore.
The strong sales at Emerald of Katong also spurred interest in 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 recorded good sales on Saturday,” says Huttons’ Yip.
Between Nov 11 and 16, The Continuum is reported to have registered 22 new sales, while Tembusu Grand saw 12 units sold, and Grand Dunman recorded five new sales.
Read also: Novo Place EC achieves 57% sales on launch day at an average price of $1,654 psf
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 adds that lower returns from other investment assets may have encouraged more buyers to consider property as their preferred investment option.
The latest figures from the Monetary Authority of Singapore (MAS) show that the number of single-family offices has grown to 1,650 as of August 2024, an increase of 250 from the end of 2023, according to Huttons. During the same period, the M1 money supply – which includes cash, demand deposits, and other liquid deposits – rose by $10.2 billion in the first nine months of 2024.
Check out the latest listings for Emerald Of Katong and other condominium properties on Ask Buddy.