999-year leasehold townhouse at The Wharf Residence for sale at $10 mil

A four-bedroom townhouse at The Wharf Residence, a 999-year leasehold development on Tong Watt Road, is on the market for $10 million. The 4,446 sq ft, three-storey unit is one of 13 retrofitted residential shophouses within the 186-unit development, which also consists of four 10- to 23-storey condo blocks and facilities. The project was completed by CapitaLand in 2008. Each of the 13 shophouses that front Tong Watt Road feature a conserved frontage that preserves 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 modernised. Read also: Two strata-titled villas at Sentosa Cove’s Green Collection for sale at $7.25 mil each Advertisement Advertisement The townhouse up for sale features a street entrance, a garden and a veranda. The ground floor has a living and dining room, an open-air courtyard and air well, a powder room, a kitchen, and a service yard. The back of the house consists of a private terrace with direct access to the two carpark lots that are allocated to this unit. The second floor consists of the en suite master bedroom, a family room, and an en suite bedroom. The remaining en suite bedrooms are on the top floor. The townhouse will be sold with an existing tenancy that expires in February next year. The owner has engaged Lester Chen, senior division director at SRI, to market the sale. According to Chen, the townhouses are available for sale to foreigners as well, and they need not seek approval from the Singapore Land Authority’s Land Dealings Approval Unit (LDAU) for their townhouse purchase. This is because The Wharf Residence was launched for sale in 2008 and is approved as a condo. In April 2012, URA issued a circular saying that they will no longer accord condo status to developments with a mix of apartments and strata landed properties. Foreigners who want to purchase strata-landed property in these developments, which are now approved as apartments, will have to get approval from LDAU. All foreigners, regardless of whether they purchase the condo units or townhouses at The Wharf Residence, will have to pay a 60% additional buyer’s stamp duty (ABSD). Read also: Four-bedroom unit at Costa Rhu reaps $2.14 mil profit Advertisement Advertisement However, there are five countries — Iceland, Liechtenstein, Norway, Switzerland and the US — that have free trade agreements with Singapore, and whose citizens or permanent residents (PRs) enjoy the same tax treatment as Singaporeans. These nationalities would not be subjected to the 60% ABSD for their first home purchase in Singapore. Meanwhile, Singapore PRs who purchase their first home in Singapore are only subjected to a 5% ABSD. “The unit has been on the market for about a year and has caught the eye of several foreign buyers as well as permanent residents [PRs]. But overall buying interest from foreigners has waned since the ABSD hike in April 2023,” says Chen. He adds that the unit continues to attract offers from prospective buyers. Last month, a PR buyer approached him with an $8 million offer, but this was turned down by the owner. According to URA caveats, the townhouse was first purchased from the developer for $4.88 million ($1,099 psf) in February 2010. It changed hands for $6.4 million ($1,440 psf) in a sub-sale transaction in June 2011. The current owner then acquired it for $6.55 million ($1,473 psf) in June 2018. The highest psf price for a townhouse at this development goes to the 4,618 sq ft unit at 7K Tong Watt Road, which changed hands for $8 million ($1,732 psf) in a sub-sale in January 2013. It is closely followed by 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 rate faced by foreign buyers has spurred many of them to turn to the rental market, says Chen. Hence, rental demand from expatriates continues to be strong, despite some moderation in rental rates this year, he adds. Read also: Resale unit at The Oceanfront reaps $2.2 mil profit Advertisement Advertisement The townhouse on the market was leased at a monthly rate of $20,000. The property will be sold with the existing tenancy. Chen observes a pick-up in the number of PRs who are currently renting while waiting for their citizenship applications to be approved. In the meantime, they are seeking a longer option period for their property purchases, so that they can obtain their citizenship before completing the purchases, he adds. He reckons the townhouse at The Wharf Residence will appeal to discerning buyers given its prime central location in the River Valley neighbourhood, its District 9 address, and its unique conservation and heritage characteristics. According to Chen, it is a rare opportunity for foreigners and PRs to experience living in a conserved property. “The next owner is likely to have a keen appreciation of the history and the unique lifestyle to be enjoyed in such a property,” he says. Check out the latest listings for The Wharf Residence properties