Wallich Residence hits $4,560 psf

By Bong Xin Ying

/ EdgeProp Singapore |

June 24, 2018 7:00 AM SGT

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The string of en bloc sales in the traditional prime Districts 9, 10 and 11 since the start of the year has driven land prices to record levels of up to $2,910 psf per plot ratio (ppr). That means selling prices of new launches are likely to touch $4,000 psf, according to property consultants.

This has had a spillover effect on the other districts in the Core Central Region: Marina Bay and the CBD core in Districts 1 and 2, as well as Sentosa Cove in District 4, where prices have not appreciated as fast until now.

At Tanjong Pagar Centre in District 2, units at Wallich Residence have been snapped up at progressively higher prices. Wallich Residence contains just 181 luxury residences and spans the 39th to 64th floors of Tanjong Pagar Centre. The residences sit on top of the 38-storey Guoco Tower, which contains Grade-A office space. Tanjong Pagar Centre is an integrated development by GuocoLand and includes retail space as well as the luxury Sofitel Singapore hotel. The entire development is linked underground to the Tanjong Pagar MRT station.

The latest transaction at Wallich Residence was the sale of a 3,509 sq ft, four-bedroom unit on the 58th floor that fetched $16 million ($4,560 psf), according to a caveat lodged with URA Realis on June 4.The 1,111-unit The Sail was the first high-rise residential project to be launched in Marina Bay in 2004. The twin-tower residential development was completed in late 2008. Its units are among the most actively traded in the Marina Bay area.

Wallich Residence, which sits on top of Guoco Tower in Tanjong Pagar Centre, has hit a new high (Samuel Isaac Chua/The Edge Singapore)

This is the highest psf price achieved so far not only at Wallich Residence, but also in the Core Central Region. It is also the second transaction in the 99-year leasehold Wallich Residence to hit the $4,000 psf mark. The first transaction to do so was the sale of a 958 sq ft, two-bedroom unit on the 55th floor that fetched $3.83 million ($4,000 psf) last November.

The more positive sentiment has also led M+S to consider rolling out the second tower of the 1,042-unit Marina One Residences. The 34-storey twin-tower development contains 521 units in each tower and is also part of an integrated development that includes offices and retail space. Transactions of units sold this month at the first tower of Marina One have seen prices ranging from $2.96 million ($2,618 psf) for a 1,130 sq ft, two-bedroom unit on the 32nd floor to $6.64 million ($2,950 psf) for a four-bedroom unit on the 25th floor.

A development that has seen a pick-up in transaction volume in the past month was The Sail at Marina Bay. The 99-year leasehold condo has also seen a slight price recovery in 1H2018. Units sold in the first six months of this year were done at an average price of $1,952 psf, about 5% higher than the average price of $1,851 psf for units sold in the corresponding six months in 2017. .

The 1,111-unit The Sail was the first high-rise residential project to be launched in Marina Bay in 2004. The twin-tower residential development was completed in late 2008. Its units are among the most actively traded in the Marina Bay area.

The latest transaction was that of a 657 sq ft, one-bedroom unit on the 29th floor of the 70-storey Tower 1 that changed hands for $1.23 million ($1,843 psf), according to a caveat lodged on June 11. The seller purchased the unit in a resale in late 2010 for $1.314 million ($1,969 psf).

A same-sized unit on the 21stfloor of the same tower fetched $1.25 million ($1,873 psf), according to a caveat lodged just four days earlier. The previous owner of the unit purchased it for $1.28 million ($1,919 psf), according to a caveat lodged in October 2010.

A third 657 sq ft, one-bedroom unit, this time on the third floor of Tower 1, was sold for $1.06 million ($1,614 psf). The seller purchased the unit for $515,250 ($785 psf) in September 2005, when the tower was launched for sale.

Meanwhile, a 592 sq ft, one-bedroom unit on the 43rdfloor of Tower 1 went for $1.18 million ($1,993 psf) in early June. The seller purchased it in a sub-sale in 2007 for $1.27 million ($2,150 psf).

“Buyers perceive that the average psf price at The Sail presents good value,” says Leong Boon Hoe, chief operating officer of List Sotheby’s International.

Even though the development has seen mixed fortunes for investors, it remains “a popular project for investment”, says Eugene Lim, key executive officer of ERA Realty. According to Lim, people with HDB addresses made up almost one-third of the buyers of units at The Sail this year.

There were 262 rental contracts at The Sail at Marina Bay in the first five months of 2018. Rents achieved for one-bedroom units ranged from Wallich Residence hits $4,560 psf SAMUEL ISAAC CHUA/THE EDGE SINGAPORE Wallich Residence, which sits on top of Guoco Tower in Tanjong Pagar Centre, has hit a new high $2,700 to $4,700; four-bedroom units fetched $6,000 to $7,800, according to URA data.

“This represents an indicative rental yield of 3.2%, according to EdgeProp. This is higher than the 3% and 2.5% at Marina Bay Residences and Marina Bay Suites respectively,” says ERA Realty’s Lim.

The highest psf price at The Sail was achieved by a 1,033 sq ft, two-bedroom unit on the 56thfloor of Tower 1. It fetched $3.615 million ($3,499 psf) in September 2011.

“Prices across all prime districts have shown an increase from the previous trough,” notes List Sotheby’s Leong. “However, prices have yet to catch up to previous highs.” Nevertheless, Leong sees the increase in transaction volume as an indication of market recovery, especially with buyers on the lookout for “prime assets”.

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