[New Launch] Emerald of Katong achieves 99% sales at launch, averaging $2,621 psf

Emerald of Katong registered robust sales over its launch weekend, with developer Sim Lian Group moving 835 out of 846 units (98.7%) in just two days. During the VIP preview on 15 November, 401 units (47%) were sold, followed by another 434 units on 16 November. Units sold across the weekend achieved an average price of $2,621 psf.

This performance may have set a new record for the highest number of units sold over a single weekend, surpassing the previous record of 738 units set by J'Gateway in June 2013.

Only 11 units remain available for sale at Emerald of Katong, comprising nine one-bedroom and two five-bedroom units. All two-, three-, and four-bedroom unit types have completely sold out. Buyers showed a clear preference for larger units with study alcoves or flexible layouts, likely purchasing for own-use and requiring adaptable spaces to suit their lifestyle needs.

Best-Selling Project of 2024

Emerald of Katong is poised to emerge as the best-selling project of 2024, both in terms of units sold and percentage take-up over a launch weekend.

The sales performance of this 99-year leasehold development along Jalan Tembusu in District 15 is especially remarkable given that it was launched alongside two other major projects.

The 552-unit Nava Grove, a 99-year leasehold development at Pine Grove (District 21) by MCL Land and Sinarmas Land, reportedly sold 359 units (65% of total units) on 16 November. On the same day, Novo Place, a 504-unit executive condominium (EC) at Plantation Close in Tengah jointly developed by Hoi Hup Realty and Sunway Developments, reportedly achieved a 57% take-up rate.

These three launches capped off an unprecedented fortnight that saw six new residential developments (including ECs) hit the market. 

The market had initially expressed concerns that rolling out six projects within 14 days might lead to some being overshadowed by others.

However, with 3,551 units on offer, home hunters had the opportunity to visit all the showflats and pick their preferred home. In fact, having an abundance of options in such a short window appeared to help buyers make quicker decisions. Had the launches been staggered across two months, buyer momentum might not have been as intense.

It also helped that Kingsford Group brought forward the launch of the 916-unit, 99-year leasehold Chuan Park to 10 November. Buyers whose first choice was Chuan Park but failed to secure a unit there were able to turn their attention to Emerald of Katong. Had both projects launched on the same weekend, prospective buyers would have been caught in a dilemma. By launching Chuan Park earlier, both developments benefited.

Chuan Park sold 696 units (76% of its total units) in a single day at an average price of $2,579 psf.

Holding Prices Steady

Another key factor behind Emerald of Katong's stellar sales was the developer's decision to hold prices steady on launch day, despite the overwhelming response. A total of 3,629 cheques were collected as expressions of interest (EOIs), translating to a subscription rate of 4.3 times. Sim Lian did not revise prices upwards from its initial price list, giving buyers and their agents confidence that even with a queue of over 3,000, they still had a fair chance of securing a unit at the quoted prices.

Caveats lodged show that District 15 has consistently been one of Singapore's most desirable residential enclaves. The appealing East Coast lifestyle coupled with a limited supply of mega-developments drew strong buyer interest to the project.

Compared with other new launches in the Rest of Central Region (RCR), which command a median price of $2,955 psf, Emerald of Katong's starting price of $2,423 psf proved exceptionally attractive.

Buyers who missed out on units at Emerald of Katong spilled over to neighbouring major condominium projects, particularly three 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 healthy spillover sales.

Between 11 and 16 November, The Continuum reportedly moved 22 units, Tembusu Grand sold 12 units, and Grand Dunman notched up five transactions.

The strong buying momentum can be attributed to resilient economic growth and falling interest rates, which have enhanced borrowing capacities and drawn more buyers into the primary market. Lower returns from alternative asset classes may have also encouraged more investors to view real estate as their asset of choice.

November Sales Could Reach Highest Level Since March 2013

Developers' sales for November are projected to reach around 2,200 units, approaching the levels seen in March 2013, when 2,793 units were sold.

Market observations also indicate that an increasing number of local and foreign buyers are leveraging trust structures to purchase residential properties for their children. Investing in private homes serves as a vehicle for wealth planning and capital preservation, reflecting both the growing wealth of domestic buyers and the steady influx of overseas capital into Singapore.

Data from the Monetary Authority of Singapore (MAS) reveals that the number of single-family offices in Singapore rose to 1,650 as of August 2024, up by 250 from the end of 2023.