Katong is a neighbourhood that is steeped in rich cultural heritage and offers a unique blend of traditional charm and modern city life. The latest addition to this vibrant community is the Tembusu Grand Condo development. This new project is poised to become one of the most sought-after addresses in the area, offering a wide range of features and amenities that are sure to appeal to a diverse group of potential buyers.
Whether you’re a young professional looking for your first home or a family searching for a spacious and comfortable place to settle down, Tembusu Grand has something to offer. In this article, we will explore the features and amenities of this new development, as well as its prime location in the heart of Katong, to give you a better understanding of what to expect from Tembusu Grand.
Tembusu Grand in Katong: A Closer Look at the Launch Details
Tembusu Grand is located along Jalan Tembusu in Katong, part of the Marine Parade area. As one of the newer additions to District 15, Tembusu Grand is bound to make a huge splash in this neighbourhood. Bringing to this area one of the largest condominiums by the number of units and rejuvenating the area with 4 blocks of 20 to 21 storeys.
Tembusu Grand will be introducing a total of 638 estimated units to this neighbourhood, increasing the supply of the immediate area by 32%. This will be a 99-year leasehold condominium with an expected TOP date in 2027. The Katong area is known for its red-hot properties and even hotter rentals. As one of the most prominent Rest of Central Region (RCR) districts, this location definitely stands out among a selection of new launches in 2023.
Based on the condominiums and apartments in the area, we have the following distribution of units of the surrounding condominiums:
Given the unit distribution of the area, the developers chose to be more strategic with its unit distribution, we might see a larger number of units which are 2-bedrooms and below, priced at a more palatable quantum price while satisfying market demand for smaller units. We might also see a strategic introduction of larger units which are 4-bedroom and above if the developer goes for this strategic route. Based on the information we have now, the unit distribution for Tembusu Grand is as follows (table below). Do note that this is subject to change without notice.
An interesting fact about this new launch is that it is one of the only leasehold developments in a sea of freehold properties in Katong. While some long-term investors might see this as a disadvantage in terms of its lease decay 30 years down the road, it might not be a concern for shorter-term investors or homeowners who are not looking for a forever home.
Due to the large number of freehold residences in supply, Condos in the Katong area have an average age of around 17 years old. This makes Tembusu Grand a very attractive option for prospective property buyers looking for excellent live-in conditions with lesser concerns about maintenance and ageing facilities.
The leasehold nature of the property would also mean that the first few owners of Tembusu Grand will enjoy the property in its pristine state and the potential appreciation upon TOP, or the first decade of stay. This leasehold nature is also partly the reason why leasehold properties sometimes appreciate much faster than freehold properties in the earlier years of its existence. The appreciation is front-loaded for leasehold properties, while freehold properties exhibit a higher but more stable average price over the years.
The recent new launches in the immediate area are Royal Hallmark (32 units, TOP 2025, freehold), Seraya Residences (17 units, TOP 2022, freehold), The Carrara (6 units, TOP 2025, freehold). These new launches have a low number of units and are built by boutique developers. While this group of new launches has its own audience group being long-term investors, property collectors, and corporate investors, Tembusu Grand is looking to make an impression and impact on a different audience group.
Tembusu Grand is clearly a project intended for the mass market. With a large number of units that will drive healthy transaction volume in the future, we can expect Tembusu Grand to have its units move much faster during its TOP period in 2027. This will be an important period to watch for homeowners in this area as property prices in Katong will be influenced by this project. This will rival the many smaller boutique developments in the area, and gives enough reason to trump the freehold status of most condos in this area.
A ballpark estimate of the price of units in Tembusu Grand is around $2,250 psf to $2,500 psf based on the land sales and current state of business expenses for developers. This price range is reasonable given its RCR status and proximity to reputable schools such as Chung Cheng High School (Main) and the whole family of Tanjong Katong Secondary School, Girls’ School, and Primary School.
To top it off, the average rental yield of condominiums around the area is 3.62% with the following table breaking it down below. Smaller units are expected to have much better rental yields in this area.
The location of Tembusu Grand is also a major selling point. The development is situated in the heart of Katong, which is known for its quaint shophouses, traditional food, and vibrant street life. The area is also home to some of the city’s reputable schools, making it an ideal location for families. The development is also conveniently located near major transportation hubs, providing residents with easy access to the rest of the city.
While there aren’t any MRT stations in the immediate vicinity (500m), we have the upcoming Tanjong Katong MRT 700m away from Tembusu Grand (10-min walk) which will complete construction in 2024. We also have Dakota MRT station less than 1km away (15-minute walk). However, Tembusu Grand is very well-connected to the city centre via the East Coast Parkway (ECP), which is a 10-minute drive.
The key amenities for residents in Tembusu Grand will be the reputable schools for families with young children, great and diverse dining options, as well as close proximity to the East Coast Park for outdoor activities and watersports. Katong is definitely one of the more sought after RCR areas when it comes to food culture.
Dive into the MOAT Analysis of Tembusu Grand Condo’s Launch in Katong
In this section we will use PLB’s MOAT Analysis, a proprietary property analysis tool designed to assist real estate investors in the evaluation of investment opportunities. MOAT utilises a wide range of data, including market trends, local demographics, and property-specific information. This enables users to gain a comprehensive understanding of a property’s potential for appreciation and rental income.
The user-friendly interface of MOAT makes it accessible to both experienced and novice investors. By providing valuable insights, MOAT aims to aid investors in identifying potential investments that align with their goals and strategies, and to assist in the decision-making process. We believe that MOAT’s unique capabilities and advanced analytical capabilities can be a valuable asset to any real estate investment portfolio. To learn more about PLB’s MOAT Analysis, you can read more here.
We will be using five nearby condominiums as indicators of how Tembusu Grand will perform on 10 different aspects. The five condominiums we chose are based on location, size, and recency. While there are no other comparable leasehold properties in the immediate vicinity, these properties are still good comparisons for Tembusu Grand to tell us more about the attractiveness of the location in terms of price and amenities. The five condominium properties we will use are 833 M B Residences (TOP 2012, 20 units), Chelsea Lodge (TOP 2000, 78 units), Haig 162 (TOP 2013, 99 units), Haig Court (TOP 2004, 360 units), and Suites@ Katong (TOP 2012, 51 units). Do note that as mentioned earlier, these are freehold properties with a much smaller number of units compared to Tembusu Grand.
Based on these five condominiums, the average score of Tembusu Grand is estimated to be 58.8%. While this might seem like a lower than usual score in our features, it prompts us to take a deeper look at why this is so. The lower score seems to be the result of a lower regional disparity and district disparity score, coupled with low Exit Audience and Volume Effect scores.
The low disparity score may be the result of Katong being an in-demand area, meaning that no disparity gap is present and the prices are well above the average price of the district and reason. This desirable location might mean a higher quality of living at the expense of some appreciation potential due to the already high price.
The low Volume Effect and Exit Audience scores are the results of a high presence of boutique condominium developments in a largely private residential estate. In some sense, Tembusu Grand stands up due to its mass market positioning with the size of its development. It is definitely considered “grand” given the existing supply of private residences in the area.
The 3 aspects which Tembusu Grand does well in are Rental Demand, Quantum Effect, and Parents’ Attraction Effect. Tembusu Grand scores an average of 4.4 for Rental Demand. This area has decent rental yield for smaller units, and will be attractive for investors going for a smaller quantum. Young professionals, expats, and couples are attracted to the Katong area because of its food, culture, and proximity to the city centre. Tembusu Grand also scores an average of 4.4 for Quantum Effect, signalling good overall affordability. Note that this could also be driven by the presence of smaller units. We speculate that the eventual price of Tembusu Grand will still be palatable due to its leasehold status and the absence of the freehold premium.
While the Parents’ Attraction Effect stands at an average score of 2.8, the schools that are near Tembusu Grand are very reputable. Going back to our earlier map (shown below again), within just a 500m radius we can find Chung Cheng High School (Main), Tanjong Katong Girls’ School, Tanjong Katong Secondary, and Tanjong Katong Primary. These are great options for families or couples intending to have children or have young children that might be attending primary or secondary school down the road.
Overall, the MOAT Analysis does indicate that this new development is more pricey than the district and region as a whole, predominantly because of its city fringe status. In some sense, you get what you are paying for when the location is in a prime spot like Katong. Prospective buyers can look to the market moving forward upon TOP due to the large size of the development relative to what is found in this location. Even existing homeowners in Katong should watch this condo closely near its TOP date. This is a prime option for intermediate-career stage buyers with some wealth built up and intending to have children on the way. For HDB or Condo Upgraders, this will be an attractive upgrade option when it comes to quality of living and food options in the area.
The Verdict on Tembusu Grand Condo Launch in Katong
In this section on our verdict of Tembusu Grand, we will summarise what we have discussed in the article in a simple table. Based on the analysis thus far, the Unique Selling Point (USP) of this condominium is its prime location in Katong, its appeal as a mass market condominium, and its newness compared to the older and smaller condominiums in this area.
Join the Excitement of the Tembusu Grand Condo Launch in Katong
In conclusion, the Tembusu Grand Condo development in Katong offers a unique blend of modern luxury and traditional charm that is sure to appeal to a wide range of potential buyers. From its prime location to its luxurious amenities and diverse unit options, Tembusu Grand is an ideal place to call home or invest in. If you’re in the market for a new home or an investment opportunity, we invite you to learn more about this exciting new launch and explore the possibilities it has to offer
We understand that buying a home or making an investment is a big decision, and we want to make the process as easy and stress-free as possible. That’s why we invite you to contact us with any questions or to schedule a visit to the show flat. Our knowledgeable sales team will be happy to provide you with more information about the development and answer any questions you may have. Additionally, we can also provide you with floor plans and pricing information and assist you in finding the perfect unit that fits your needs. Don’t miss out on the opportunity to be a part of the Tembusu Grand community, contact us today to learn more!
The tentative viewing date is on 25 March 2023.
The expected launch date is on 8 April 2023.
Accurate as of 9 January 2023 and is subject to change without prior notice.
Stay tuned for a follow-up article with more detailed information on the launch.
