999 Year Leasehold Townhouse Wharf Residence Sale 10 Mil
as River Valley Road area undergoes rejuvenation
A four-bedroom townhouse at The Wharf Residence, located on the highly sought-after Tong Watt Road, has hit the market for a whopping $10 million. This three-storey, 4,446 sq ft unit is one of only 13 retrofitted residential shophouses within the development. The Wharf Residence, completed by CapitaLand in 2008, is a 186-unit development that also includes four 10- to 23-storey condo blocks and various facilities.
Chairman of Hoi Hup Realty, Wong Swee Chun, has voiced his contentment with the acquisition of a new site. He highlighted the immense potential it holds for showcasing their prowess in constructing contemporary, eco-friendly, and functional Executive Condominiums (ECs). With the establishment of Tengah Town in close proximity, future residents of Novo Place EC, now available through Novo Place Hoi Hup, can enjoy a plethora of amenities and facilities. Additionally, they will also have easy access to the revamped Jurong Regional Centre and Jurong Lake District.
Each of the 13 shophouses that face Tong Watt Road are designed to preserve the key elements of their original architecture, such as the air wells, five-foot way, timber window louvres, and pitched roof. However, the interiors and layout of the units have been updated to provide a modern living experience.
The townhouse, which can accommodate a large family, features a street entrance, a garden and a veranda. The ground floor comprises a spacious living and dining area, an open-air courtyard and air well, a powder room, a kitchen, and a service yard. The back of the house has a private terrace that offers direct access to the two allocated carpark lots for this unit.
The Wharf Residence, a 999-year leasehold development, is located in the prestigious District 9. The second floor of the townhouse boasts an en suite master bedroom, a family room, and another en suite bedroom. The remaining bedrooms are located on the top floor, all with en suite bathrooms.
The townhouse is currently tenanted until February next year, adding to its appeal as an investment property. The owner of the property has engaged Lester Chen, senior division director at SRI, to market the sale.
Chen notes that the townhouses at The Wharf Residence are available for purchase by foreigners and do not require approval from Singapore Land Authority’s Land Dealings Approval Unit (LDAU). This is because the development was launched for sale in 2008 and is officially classified as a condominium. However, since April 2012, URA has stated that they will no longer grant condo status to developments with a mix of apartments and strata landed properties. Foreigners who wish to purchase strata-landed properties in these developments, now classified as apartments, will be required to seek approval from LDAU. All foreigners, regardless of whether they purchase condo units or townhouses at The Wharf Residence, must pay a 60% Additional Buyer’s Stamp Duty (ABSD).
That said, citizens or permanent residents from Iceland, Liechtenstein, Norway, Switzerland, and the US have free trade agreements with Singapore and enjoy the same tax treatment as Singaporeans. This means that they are exempt from paying the 60% ABSD for their first home purchase in Singapore. Additionally, for Singapore PRs purchasing their first home in Singapore, the ABSD rate is only at 5%.
Chen reveals that the townhouse has been on the market for approximately a year and has attracted interest from various foreign buyers as well as Singapore PRs. However, foreign buying interest has been relatively subdued since the increase in ABSD rates in April 2023.
Despite this, the property continues to receive offers from potential buyers. Last month, it received an $8 million offer from a PR buyer, which was declined by the owner. According to URA caveats, the property was first purchased from the developer in February 2010 for $4.88 million ($1,099 psf). It was subsequently sold in a sub-sale for $6.4 million ($1,440 psf) in June 2011. The current owner acquired the townhouse for $6.55 million ($1,473 psf) in June 2018. The highest psf price for a townhouse in the development was achieved by the 4,618 sq ft unit at 7K Tong Watt Road, which sold for $8 million ($1,732 psf) in a sub-sale in January 2013. A close second was the sale of the 4,639 sq ft townhouse at 7N Tong Watt Road for $7.81 million ($1,685 psf) in April 2021.
The high ABSD rates faced by foreign buyers have driven many to turn to the rental market, observes Chen. As such, rental demand from expatriates remains strong, despite some moderation in rental rates this year.
The townhouse on the market is currently leased for $20,000 per month and will be sold with its existing tenancy. Looking ahead, Chen expects a further increase in the number of PRs renting while awaiting approval for their citizenship applications. These individuals may request an extended option period for their property purchases to enable them to become citizens before completing the purchase.
He predicts that the townhouse at The Wharf Residence will be particularly appealing to discerning buyers due to its prime location in the central River Valley neighbourhood, coveted District 9 address, and unique conservation and heritage features. He adds that this is a rare opportunity for foreigners and PRs to experience living in a conserved property and notes that the next owner is likely to have a deep appreciation of the history and distinctive lifestyle offered by such a property.