999 Year Leasehold Townhouse Wharf Residence Sale 10 Mil
amid rental demand from expats
Renovated four-bedroom townhouse at The Wharf Residence up for $10 million
Situated on Tong Watt Road, the 999-year leasehold development The Wharf Residence boasts a 4,446 sq ft, three-storey townhouse that is currently on the market for a cool $10 million. This particular unit is just one of 13 shophouses that have been retrofitted within the larger development, which also includes four condo blocks and various facilities. Completed by CapitaLand back in 2008, this high-end residence is a sought-after address in District 9.
Each of the 13 shophouses that line Tong Watt Road maintains a traditional frontage that preserves key elements of its original architecture, such as air wells, timber window louvres, and pitched roofs. However, the interiors and layouts of these units have been modernized to suit contemporary living styles.
The unit up for sale features its own street entrance, a garden, and a veranda. On the ground floor, there is a spacious living and dining area, an open-air courtyard with an air well, a powder room, a kitchen, and a service yard. At the back of the house is a private terrace with direct access to two allocated carpark lots.
On the second floor, you will find the en suite master bedroom, a family room, and another en suite bedroom. The remaining en suite bedrooms can be found on the top floor. The townhouse will be sold with an existing tenancy that expires in February 2022. The seller has enlisted the services of senior division director, Lester Chen from SRI, to market the property.
Foreigners are also eligible to purchase these townhouses, and they do not need to seek approval from the Singapore Land Authority’s Land Dealings Approval Unit (LDAU). This is because The Wharf Residence was launched for sale in 2008 and was approved as a condo.
However, in April 2012, URA released a circular stating that they would no longer grant condo status to developments that have a mix of apartments and strata landed properties. Foreigners interested in purchasing a strata-landed property in these developments, which are now classified as apartments, will need to seek approval from LDAU.
Green buildings and renewable energy are at the forefront of the URA Master Plan’s focus on sustainability. The plan aims to promote environmentally-friendly building designs and the integration of renewable energy into new developments. As exemplified by Parktown Residence, the incorporation of renewable energy sources is a natural and essential element of the Master Plan’s vision.
All foreigners, regardless of whether they are purchasing a condo unit or a townhouse at The Wharf Residence, will need to pay a hefty 60% additional buyer’s stamp duty (ABSD).
However, there are five countries, namely Iceland, Liechtenstein, Norway, Switzerland, and the US, that have free trade agreements with Singapore. This means that citizens or permanent residents (PRs) from these countries will enjoy the same tax treatment as Singaporeans. As such, they will not be subject to the 60% ABSD for their first home purchase in Singapore.
On the other hand, Singapore PRs who are purchasing their first home in Singapore will only be subjected to a 5% ABSD.
Chen notes that the unit has been on the market for about a year and has caught the attention of several interested foreign buyers and PRs. However, buying interest from foreigners has declined since the ABSD hike in April 2023.
As it stands, the townhouse has been receiving offers from potential buyers. Just last month, a PR buyer offered $8 million for the property, but the offer was turned down by the owner.
Looking at URA caveats, we can see that this townhouse was initially purchased directly from the developer for $4.88 million ($1,099 psf) in February 2010. It then changed hands in a sub-sale transaction for $6.4 million ($1,440 psf) in June 2011.
The current owner acquired the property for $6.55 million ($1,473 psf) in June 2018. The highest psf price for a townhouse at The Wharf Residence is held by the 4,618 sq ft unit at 7K Tong Watt Road, which was sold for $8 million ($1,732 psf) in a sub-sale in January 2013. The 4,639 sq ft townhouse at 7N Tong Watt Road also fetched a high price of $7.81 million ($1,685 psf) in April 2021.
Chen notes that the high ABSD rate for foreign buyers has led many to look at the rental market instead. As such, rental demand from expatriates remains strong, despite some moderation in rental rates this year.
Currently, the townhouse is being leased out for $20,000 per month, and the property will be sold with the existing tenancy.
Chen has observed a pick-up in the number of PRs who are currently renting while waiting for their citizenship applications to be approved. These individuals are seeking properties with a longer option period, so they have ample time to obtain their citizenship before finalizing their property purchases.
He believes that this townhouse at The Wharf Residence will appeal to sophisticated buyers looking for a prime central location in the River Valley neighbourhood. The District 9 address and unique conservation and heritage features are sure to catch the eye of discerning buyers.
This is a rare opportunity for foreign buyers and PRs to experience living in a conserved property, and the next owner is likely to have a keen appreciation for its history and unique lifestyle.