Wallich Residence 62% sold, 68 units left for sale

GuocoLand has also leased out 10 to 20 units at Wallich Residence, and has achieved high rentals, says group MD

Thu, Aug 20, 2020

Siow Li Sen


Wallich Residence penthouse on the 60th floor features marble, reflective columns and metal in bronze finishes for a luxe feel.
BT FILE PHOTO

https://www.businesstimes.com.sg/rea...-left-for-sale

WALLICH Residence, famed for Singapore's most expensive penthouse, is 62 per cent sold.

That means the 181-unit ultra-luxe project in the Central Business District still has 68 units for sale, said Cheng Hsing Yao, GuocoLand Singapore's group managing director.

Launched in 2017, Wallich Residence houses its residential units on the 39th to 64th floors of Guoco Tower, which sits atop Tanjong Pagar MRT station. On Guoco Tower's lower floors are office, retail and F&B spaces. The office is 99 per cent tenanted.

At 290 metres above sea level, leasehold Guoco Tower is Singapore's tallest building.

Last year, James Dyson, the founder of British consumer electronics maker Dyson, and his wife Deirdre paid S$73.8 million for a triplex penthouse at Wallich Residence. The super penthouse is perched on the top three levels of the 64-storey tower.

Many units have been sold in recent months and a lot of buyers are foreigners, said Mr Cheng in an interview, giving an update on some of the company's residential projects.

The price of a unit at Wallich Residence depends on the floor level of the apartment. The price of units at lower floors can range from S$3,000 to S$3,880 psf (per square foot), while the higher floors ranges from S$3,450 to S$4,240 psf. Penthouses have hit prices close to S$5,000 psf.

The recent buyers are a mix of investors and owner occupiers, unlike the early days when more were bought for investment, he said.

"The foreigners (buying the units), it does not necessarily mean they will be migrating to Singapore. Many have businesses in South-east Asia with Singapore as their base and home," said Mr Cheng. Many now live at home instead of checking into hotels when they are in Singapore, he added.

GuocoLand has also leased out 10 to 20 units at Wallich Residence, and has achieved high rentals, he said.

Rates are S$8 to S$11 per sq ft which is high for residential, and translates to a gross rental yield of about 3 per cent, he said.

The median rent for Core Central Region (CCR, or high-end segment) is S$4.06 psf in the first half of 2020, said Christine Li, Cushman & Wakefield, head of research, Singapore and South-east Asia.

Prime CCR for newer and better quality condos' rent was S$4.97 psf in 1H 2020, she said.

"The occupancy of sold units is not too bad," said Mr Cheng when asked about the significant unlit portions of the upper levels of the building at night which typically reflects on the lack of residents.

Wallich Residence consists of one to four bedroom units, four penthouses, and one super penthouse.

Meanwhile, over in district 9, GuocoLand's 450-unit Martin Modern is 90 per cent sold. Located at the corner of Martin Place & River Valley Close, the leasehold Martin Modern is situated at the lifestyle enclave of Robertson Quay. The project is expected to be ready in June 2022.