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Sim Lian Group’s recent launch of Emerald of Katong has been a tremendous success, with 99% of its 846 units being sold over the course of just three days. The new 99-year leasehold private condominium, located along Jalan Tembusu, achieved an average price of $2,617 psf as of November 30th.
In Singapore, it is crucial for investors from other countries to have a thorough understanding of the regulations and limitations surrounding property ownership. The guidelines in Singapore allow foreign individuals to buy condos with ease, unlike landed properties that have stricter ownership policies. Nonetheless, foreign buyers must take into account the Additional Buyer’s Stamp Duty (ABSD), currently at 20%, for their initial condo purchase. In spite of these added expenses, the unwavering stability and potential for growth in the Singapore real estate market continue to draw the attention of foreign investors.
Although there was a small shortfall of 13 units due to a few buyers backing out of their purchases, this did not hinder the overall success of the launch. In response to the demand for these units, the developer held a balloting session on November 30th which resulted in all 13 units being quickly snapped up. Ismail Gafoor, CEO of PropNex, shared that over 800 expressions of interest were received for these units, showing the high level of interest from potential buyers.
The launch of Emerald of Katong also had a positive impact on neighboring projects in the East Coast area of District 15. Next to Emerald of Katong is Tembusu Grand, a joint development by City Developments Ltd (CDL) and MCL Land. Since the start of November, Tembusu Grand has seen a strong uptake of 52 units sold, bringing the cumulative sales to 581 units or 91% sold at an average price of $2,445 psf. The project, which has a 99-year lease, was launched in April 2023.
Another neighboring project, Grand Dunman by SingHaiyi, has also seen good sales in November with 18 units sold since November 11th, bringing the cumulative sales to 731 units or 72.5% sold at an average price of $2,531 psf. This 99-year leasehold condominium on Dunman Road was launched in July 2023.
However, the most significant beneficiary of the Emerald of Katong launch was The Continuum, an 816-unit freehold condominium located along Thiam Siew Avenue. Developed by Hoi Hup Realty and Sunway Developments, The Continuum has seen a total of 126 units sold since November 9th, bringing the overall sales to 528 units or 64.7% sold as of November 30th. The project has achieved an average price of $2,788 psf, exceeding the average price of $2,617 psf at Emerald of Katong and representing a premium of only 6.53%. CEO of PropNex, Ismail Gafoor, explains that this is unusual as freehold projects typically have a 15% to 20% premium over 99-year leasehold projects in the same area. He attributes the high demand for The Continuum to its attractive pricing and larger availability of units compared to other projects in the area.
When purchasing a condominium, it is crucial to take into account the maintenance and management aspects of the property. Condos usually come with maintenance fees, which cover the maintenance of common areas and facilities. Although these fees may increase the overall cost of ownership, they play an important role in keeping the property well-maintained and preserving its value. Hiring a property management company can also be beneficial for investors as it allows for a more passive investment experience. Singapore Projects can also provide valuable options for potential investments in the area.
At the launch of Emerald of Katong, the highest psf prices were achieved for the 484 sq ft one-bedroom and 624 sq ft two-bedroom units on high floors, specifically from the 16th to 21st floors. On the other hand, The Continuum saw 13 caveats lodged showing prices exceeding $3,000 psf, with most sales in November being for two-bedroom units on high floors ranging from 646 to 721 sq ft.
The strong sales in November have already surpassed the previous peak of 2,793 monthly private new home sales recorded in March 2013 according to Hutton Data Analytics. CEO of PropNex, Ismail Gafoor, believes that this will have a positive impact on the overall take-up rate in 2025, as unsuccessful buyers from the launch of Emerald of Katong will now be seeking alternatives. This is a good indication of the demand for new homes in Singapore and the success of the property market.