Emerald of Katong Land Bid Price: Site Map Review 

The Emerald of Katong location is at Jln Tembusu Road. The government land sale (GLS) at the Jalan Tembusu land plot commenced on 14 March 2023 and closed on 18 July 2023. In this article, we will review the GLS of Emerald of Katong land bid price. In addition, we will summarise the proposed neighbourhood park requirements by the Urban Redevelopment Authority (URA).

The Emerald of Katong site spans 20,572.1 m² with a maximum gross floor area of 72,003 m². Moreover, the developer has announced they will build 846 residential units from 1 bed to 4 bed+ study unit type.

Emerald of Katong Land Bid Price

Competitive Bidding Landscape

The tender for the Jalan Tembusu site was very competitive. There are 2 bids submitted from Sim Lian Group and a joint venture of City Developments Limited (CDL) and Frasers Property. Sim Lian Group won by a marginal 0.1% higher than the other bid.

Sim Lian Group offered the highest bid of $828.8 million, which translates to $1,069.37 per square foot per plot ratio (psf ppr). The joint venture between CDL and Frasers Property bidded $828.0 million. This translates to $1,068.34 per square foot per plot ratio (psf ppr).

Therefore, this close bidding suggests a strong consensus on the site’s valuation amidst cautious market conditions.

Market Context and Developer Caution

The bids for the Jalan Tembusu plot reflect a cautious approach from developers, influenced by several factors:

• Market Saturation: District 15 is a very popular area as we can see from the substantial influx of new developments. Recent launches include Tembusu Grand, The Continuum, and Grand Dunman, totalling nearly 2,500 units.

• Economic Headwinds: The increase of additional buyer’s stamp duty (ABSD) after 27 Apr 2023, will affect the buyer’s affordability. This is compounded by rising construction costs, which further threaten margins.

Financial Implications for the Emerald of Katong

With the land acquisition cost at $1,069.37 psf ppr, the break-even price for developments on this site is estimated at around $2,000 psf. The projected selling price for the future residential project, potentially named Emerald of Katong, is expected to range between $2,300 psf and $2,380 psf. Indeed, this pricing strategy would need to consider the existing competitive landscape with nearby developments like Tembusu Grand and Grand Dunman, which have recorded healthy sales at similar price points.

Strategic Considerations for Sim Lian

Sim Lian’s acquisition appears to be a strategic move in land banking, possibly anticipating a resurgence in market demand. This is indicated by their recent successful completions and sales at other projects, such as Treasure at Tampines and The Botany at Dairy Farm. Their conservative yet hopeful bid reflects a balanced anticipation of future market dynamics.

Emerald of Katong Neighbourhood Park

Additionally, the Successful Tenderer (“ST”) is encouraged to develop a nearby park. The park aims to create a healing and restorative environment for a broad demographic from nearby neighbourhoods.

Site Context

• Location: Partly on a current surface carpark and part of the Canadian International School site.
• Surroundings: Adjacent to a nursing home to the north, future residential development to the east, and a conserved building to the south.
• Existing Flora: 11 rain trees present, 9 of which are to be retained. Removal or damage to these trees requires explicit approval.

Conceptual Park Design:

• Design Overview: The park will function as a semi-active space for rehabilitation and recreation, featuring diverse native plantings and non-manicured landscapes.
• Site Topography: The ground will slope gently from west to east to integrate smoothly with adjacent developments.
• Zoning: Spatial zoning will separate quieter areas from more active spaces to accommodate nearby nursing homes and residential needs.

Facilities:

• Park Entrances: Multiple access points, BFA compliant, designed to prevent entry by unauthorized vehicles.
• Therapeutic Garden: At least 1000 sqm, featuring health-beneficial zones, shelters, and toilets for therapeutic activities.
• Nature Playgarden: Designed for children aged 2-5, utilizing natural elements for play, covering no less than 1000 sqm.
• Community Garden: Space allocated for future community garden development with necessary utilities planned.
• 3G Fitness Area: A multi-generational fitness area using natural materials, minimum area of 100sqm.
• Lawn & Activity Area: Designed for group exercises and community events, surrounded by seating areas.
• Water Sensitive Urban Design: Integration of water features that can also serve as seating areas, using natural materials like rocks.

Integration with Surroundings:

• Must interface sensitively with its surroundings, particularly with the nursing home and the residential areas.
• Coordination with the nursing home is necessary to align landscape levels and eliminate redundant structures like retaining walls.
• Pedestrian thoroughfare alignment: Includes a mix of planting strips and footpaths to enhance connectivity and aesthetics.

Harmonisation of Gross Floor Area

In a significant move to streamline real estate practices, Singapore’s Urban Redevelopment Authority (URA), along with three other key agencies—Singapore Land Authority, the Building and Construction Authority, and the Singapore Civil Defence Force—introduced a harmonised Gross Floor Area (GFA) definition effective June 1, 2023.

This measure seeks to eliminate inconsistencies and enhance the efficiency of property development across Singapore. So how does this affect Emerald of Katong? What are the changes? We will be tackling this question that many buyers have in mind in 3 parts – what is GFA, its impact on developers and the market implications.

Why Harmonise GFA?

Previously, each agency set its own policy for calculating floor areas. Nonetheless, this led to confusion and inefficiency. Developers and property owners faced challenges in navigating the diverse standards. This is more prominent when planning additions or alterations. The new harmonisation set a benchmark for all agencies to follow when it comes to calculating floor areas – measuring to the middle of the wall, which includes all strata areas as part of the GFA but excludes voids.

Impact on Developers

For developers, this harmonisation translates into a reduction of saleable floor area by approximately 7-8%. As a result, the total area that the developer can sell will decrease. The new guidelines means the the PSF appears higher but in reality buyers are paying the same absolute price for the same livable space.

Take for example a 4 bedroom unit with an area of 126 sqm or 1356 sqft. This includes a 8 sqm or 86 sqft of AC ledge. The price listed would be $2,830,000 ($2,087 psf). Under the new guideline, the unit will be listed as 118 sqm or 1270 sqft. They will not include the AC ledge in the area calculation. The price remains at $2,830,000 ($2,228 psf).

• GFA will be measured to the middle of the curtain wall
• The aircon ledge will be considered part of the GFA (less oversized AC ledges)
• GFA will be measured to the middle of the external wall
• Void areas will be excluded from the strata area computation

To adapt, developers might opt for smaller design elements, like private aircon ledges, or consider centralised cooling systems to optimise the usable space. Furthermore, this change is likely to influence land bid prices as developers adjust to the new guidelines to maintain their margins.

Market Implications

Despite these adjustments potentially leading to lower land bids, experts do not expect home prices to decrease. Additionally, other factors, such as a 30-40% increase in construction costs post-pandemic and elevated interest rates, contribute to maintaining high property costs.

Developers will have to account for the new GFA definition which reduces their total saleable area. This might cause the developer to increase the PSF prices. In essence, while the harmonisation aims to simplify GFA calculation, the property prices are unlikely to drop as a result.

Emerald of Katong Land Bid Price

To sum up, Emerald of Katong land bid price at Jalan Tembusu land bidded by Sim Lian Group underscores a cautiously optimistic outlook. There will be 846 residential units from 1 bedroom to 4 + study bedrooms available. As the market continues to evolve, all eyes will be on this development as it is in the prominent district 15.

Book an appointment with our direct developer sales team today to understand more about the project. Or continue reading our comprehensive analysis comparing nearby developments like Grandeur Park to Tembusu Grand.