.
Investing in a condo in Singapore offers numerous advantages, one of the most noteworthy being the potential for capital appreciation. As a global business hub with robust economic fundamentals, Singapore attracts a constant demand for real estate. Over the years, property prices in the country have consistently shown an upward trajectory, with condos in prime locations experiencing significant appreciation. Savvy investors who carefully time their market entry and hold onto their properties for the long run can reap substantial gains from capital appreciation.
Emerald of Katong has recorded exceptional sales during its launch weekend, with 98.7% of its units (835 out of 846) sold by developer Sim Lian Group in just two days. The VIP sales on Nov 15 saw 47% of units (401) taken up, followed by another 434 units on Nov 16. The average price for units sold over the weekend stood at $2,621 per square foot (psf). Sim Lian Group declined to comment on the sales.
According to Mark Yip, CEO of Huttons Asia, “It probably holds the record for the most number of units sold in a day, besting J’Gateway’s 738 units in June 2013.” Only eleven units remain available at Emerald of Katong, consisting of nine one-bedroom units and two five-bedroom units. All two-, three-, and four-bedroom units have been sold out. Yip notes that buyers were particularly interested in larger units with either a study or flex layout, as they were likely purchasing for owner-occupation and needed the extra space to suit their lifestyle needs.
To get the latest information on available units and prices at Emerald of Katong, check out the advertisement for the development.
According to Lee Liat Yeang, the real estate senior partner of Dentons Rodyk & Davidson LLP, the developer’s lawyers, Emerald of Katong can be considered the top-selling project of 2024 in terms of both the number of units sold and the percentage sold during its launch weekend. The sales performance of the 99-year leasehold project, located at Jalan Tembusu in District 15, is particularly impressive as it was launched on the same weekend as two other projects.
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. 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 projects conclude an unprecedented six new residential projects (including the EC project) 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, he adds, “with 3,551 units on offer, homebuyers had the opportunity to visit all the developments before choosing their preferred one.” Gafoor believes that having multiple options in a short period of time actually helped buyers make decisions more quickly, and that the interest may not have been as intense if the launches had been spread out over two months. He also points out that Kingsford Group moved forward the launch of the 916-unit, 99-year leasehold Chuan Park to Nov 10 from Nov 16, also helping to draw more interest to the various projects.
Nava Grove achieved a sales rate of 65% during its launch weekend, at an average price of $2,448 psf. Meanwhile, Chuan Park, which sold 696 units (76% of its total units) in a single day, recorded an average price of $2,579 psf.
One of the factors contributing to the strong sales at Emerald of Katong was the developer’s decision to hold prices steady throughout its launch day, despite the overwhelming response. A total of 3,629 expression of interest (EOI) cheques were collected, which translates to the project being 4.3 times oversubscribed. “Sim Lian did not raise their selling prices from the initial price list,” says Gafoor. “It reassured buyers and their agents that they still had an opportunity to secure a unit at the same price, even if their queue number was as high as 3,000.”
According to figures from caveats lodged, District 15 has always been among the top districts to live in Singapore, notes Yip. “The East Coast lifestyle and the limited number of large projects attracted buyers to Emerald of Katong,” he says. Yip adds that compared to other new projects in the Rest of Central Region (RCR), which have a median price of $2,955 psf, the starting price for units at Emerald of Katong, which starts from $2,423 psf, is very attractive. Marcus Chu, CEO of ERA Singapore, agrees, saying that buyers who were unable to secure a unit at Emerald of Katong turned to other major condo projects in the vicinity, notably 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,” according to Huttons’ Yip. From Nov 11 to 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.
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 a preferred investment.
Huttons estimates that developers’ sales in November will reach up to 2,200 units, approaching the levels recorded in March 2013, when 2,793 units were sold. On-the-ground observations also indicate a growing number of prospective local and foreign buyers utilizing trust structures to acquire homes for their children, notes Yip. He believes that this trend reflects 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 grew to 1,650 as of August 2024, which is an increase of 250 from the end of 2023. 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.