With over 3,500 units launched in District 15 within the past 18 months, the question on everyone’s mind is: Will District 15 be oversupplied? This blog post will explore this issue by analyzing real data, comparing Emerald of Katong with other recent launches, and providing insights into the long-term viability of this popular district.
By the end, you’ll have a clearer picture of whether this is a good time to invest in District 15 and, more specifically, if Emerald of Katong should be on your radar.
How Does Emerald of Katong Compare to Other District 15 Launches?
District 15, known for its proximity to the East Coast and a blend of old-world charm with modern developments, has been a hotbed for new launches. In the past 18 months, we’ve seen some high-profile projects, including Tembusu Grand, Continuum, and Grand Dunman. But how does Emerald of Katong stack up?
Let’s start with a comparative analysis:
Tembusu Grand:
- Launched nearly a year ago, this development sold about 50% of its units on launch day and has continued to perform steadily.
- Smaller units, such as the 1+ Study and 2-bed, 2-bath options, sold out quickly. Meanwhile, larger units like the 3+ Study and 4-bed options are still available.
- Interestingly, the mid-range units, priced between $1.8M and $2.4M, have seen the fastest absorption, a key insight for those considering Emerald of Katong.
Continuum:
- After a slower start, Continuum has now sold about 50% of its units, with the 2-bed units outperforming the more expensive 3-bedroom options.
- Despite pricing challenges (with some units exceeding $1.48M), this freehold development has found its footing in the market.
Grand Dunman:
- With a 70% take-up rate, Grand Dunman has been one of District 15’s more successful launches.
- Notably, even smaller units such as the 1-bedder and 1+ Study have sold well, with only a few remaining.
- However, dual-key units and larger units priced above $3.5M have been slower to move, offering insights into what segments of the market are still untapped.
By looking at the sales trends and pricing strategies of these developments, we can better understand how Emerald of Katong is likely to perform. However, the key question remains: Will District 15 face oversupply, and what does that mean for future profitability?
Oversupply in District 15: Myth or Reality?
With close to 3,500 new units entering the market in District 15 in such a short span, many investors are concerned about the potential for oversupply. The logic is simple—more supply could mean lower prices and reduced profitability.
However, data suggests otherwise. Our team has analyzed the performance of various districts across Singapore, including areas around MRT stations, and found that high supply doesn’t always correlate with lower returns. In fact, we’ve seen many cases where areas with a higher supply of units near MRT stations, such as Great World and Queenstown, have yielded strong profits.
For example:
- Great World: Despite a high concentration of units, properties near the MRT station have outperformed the market average in terms of profitability.
- Orchard: Conversely, despite being a prime area with low supply, some developments in Orchard have yielded below-average returns.
What does this tell us? Don’t assume oversupply automatically means lower profitability.
Through extensive research and backtesting, we’ve developed an Exit Strategy Framework that helps visualize how projects like Emerald of Katong might perform in the future. In District 15, while there may be an influx of units, strong demand continues to support healthy profit margins.
Emerald of Katong: What Sets It Apart?
Now, let’s turn our attention back to Emerald of Katong. There are three critical factors that make this project stand out in District 15:
Pricing and PSF:
- Based on recent launches, we anticipate Emerald of Katong to have a price range between $2,300 and $2,600 PSF. This is in line with other projects in the area but comes with a key advantage—smaller unit sizes due to the new GFA harmonization rules.
- Smaller units mean lower entry quantum, even if the PSF is higher. This could make Emerald of Katong more accessible to buyers who may have been priced out of other District 15 developments.
Strategic Gaps in Supply:
- In developments like Tembusu Grand and Grand Dunman, the smaller units have been the first to go, with limited remaining supply. This leaves an opportunity for Emerald of Katong to target buyers looking for 1- or 2-bedroom units at competitive prices.
- For example, Tembusu Grand’s 1+ Study units are almost entirely sold out, and the few remaining units are priced around $1.4M. If Emerald of Katong can offer similar units at lower prices, it could fill this demand gap.
Long-Term Market Stability:
- While there may be a perception of oversupply, the reality is that demand for District 15 properties remains strong. Families are drawn to the area for its proximity to the East Coast, and investors recognize the long-term potential of developments close to good schools and amenities.
A Deep Dive into Emerald of Katong’s Exit Strategy
As an investor, one of the most important things to consider is your exit strategy. How easy will it be to sell the unit when the time comes, and will you be able to make a healthy profit?
Our Exit Strategy Framework takes into account three critical data points to assess the long-term viability of a project:
Profitability:
- We estimate that Emerald of Katong will deliver an average profitability of 4.8% per annum. This is based on our analysis of recent resale transactions in the Tanjong Katong MRT vicinity, which show that even with a high supply of units, profitability remains healthy.
Supply Ratio:
- The current supply ratio in the area—218 units for sale out of a total supply of 4,514 units—suggests a high level of competition. However, this ratio is comparable to other developments in District 15, such as Grand Dunman and Continuum. As long as you’re aware of this dynamic and plan for a longer holding period, the supply levels shouldn’t negatively impact your ability to sell when the time comes.
Gap Score:
- One of the standout features of Emerald of Katong is its Gap Score, which measures the difference between the project’s pricing and the average resale pricing in the area. Emerald of Katong benefits from being priced lower than many of the older freehold developments nearby, such as The Esta and Amber Residences. This means you’re entering the market with a comfortable price gap, reducing the risk of price stagnation in the future.
Why Emerald Of Katong is a Smart Buy
Here are some key reasons why Emerald of Katong is shaping up to be a smart investment or homebuying opportunity:
- Strategic Location
Emerald Of Katong is nestled within one of Singapore’s most popular districts, offering a perfect balance between urban convenience and East Coast living. While it isn’t within 1 km of top-tier schools like Kong Hwa, its proximity to popular lifestyle amenities and the upcoming Tanjong Katong MRT more than makes up for this. - Affordability in a Competitive Market
With recent launches like Continuum and Grand Dunman priced at the higher end, Emerald Of Katong’s lower entry quantum—thanks to GFA harmonization—offers buyers a rare chance to enter District 15 at a more affordable price point. - Strong Demand for Small-Mid Sized Units
The demand for units priced between $1.8 to $2.4 million has been strong across District 15, and we expect Emerald of Katong’s smaller units to follow the same trajectory. With limited supply in this price range and a growing buyer pool, these units are likely to sell out quickly. - Robust Gap Score
Emerald Of Katong ranks first in our Gap Score analysis, meaning it offers one of the best value propositions in District 15. The Gap Score compares price quantum and PSF between new and old developments, showing that buyers in Emerald Of Katong are entering the market at lower prices than in surrounding resale properties. - Long-Term Profit Potential
While it may take a slightly longer holding period to maximize returns, the long-term profit potential of Emerald of Katong is promising. With new infrastructure developments in the area and the general desirability of District 15, capital appreciation is almost inevitable for those willing to hold their investment.
3 Things to Consider Before Buying in Emerald of Katong
While there’s a lot to love about Emerald Of Katong, it’s important to approach any property purchase with a well-rounded view. Here are a few points to consider:
- Distance to MRTAt 850 meters from Tanjong Katong MRT, the development isn’t exactly next door to public transport. While this distance is manageable and District 15 has historically done well without MRT proximity, buyers who prioritize walkability may see this as a downside.
- No 1km Radius for Top Schools. Unlike some other District 15 developments, Emerald Of Katong isn’t within 1 km of top primary schools like Kong Hwa. This may deter families with school-going children who prioritize proximity to educational institutions.
- Potential FOMO During Launch. With pent-up demand and long anticipation for Emerald of Katong’s launch, it’s important to avoid making emotional decisions on the day of the ballot. We always advise clients to have a clear plan in mind, especially since the fear of missing out (FOMO) can lead to rushed decisions.
Making the Right Move with Emerald Of Katong
Emerald Of Katong offers a unique opportunity to enter District 15 at a competitive price point while benefiting from the area’s consistent demand and long-term profitability. Whether you’re a first-time buyer, investor, or looking to upgrade, understanding the data behind the market will help you make informed decisions and seize the right opportunities.
If you need more detailed insights or a personalized analysis of how Emerald of Katong fits your property goals, feel free to reach out on our WhastApp. Our team is here to assist you in navigating this competitive market and helping you make the Right Move.
