Five-bedroom penthouse at Paterson Suites incurs $6.2 mil loss

/ EdgeProp Singapore |

January 5, 2023 5:30 AM SGT

The seller of the 6,663 sq ft penthouse at Paterson Suites incurred a loss of $6.2 million (31%), which also translates to an annualised loss of 3.3% over 11 years.

SINGAPORE (EDGEPROP) - The seller of a 6,663 sq ft, five-bedroom penthouse unit at Paterson Suites ended 2022 on a sour note when the unit was sold for just $13.8 million ($2,071 psf) on Dec 9, 2022. This is a significant markdown from the $20 million ($3,002 psf) price when the unit was bought from the developer in November 2011.

As a result, the seller incurred a loss of $6.2 million (31%), which also translates to an annualised loss of 3.3% over 11 years. This is also the first time that the unit has changed hands.

This transaction is the most unprofitable sale recorded at Paterson Suites so far. The previous record was for a 1,679 sq ft, three-bedroom unit that incurred a $2.84 million (44%) loss when it was sold for $3.62 million ($2,156 psf) in June 2016.

Paterson Suites is a luxury freehold condominium at Paterson Road in prime District 9. The project was completed in 2010. The condo was designed by local architectural firm DP Architects.

The sale of the 6,663 sq ft penthouse at Paterson Suites on Dec 9 is the first time the unit has changed hands in 11 years. (Picture: Samuel Isaac Chua/The Edge Singapore)

The development is within a highly exclusive residential enclave close to the Orchard Road shopping belt that consists of luxury condos along Grange Road, Orchard Boulevard and Cuscaden Road. Nearby luxury condos include The Marq on Paterson Hill, Gramercy Park and New Futura, while upcoming developments in the vicinity include Irwell Hill Residences and Cuscaden Reserve.

Paterson Suites comprises 102 units that are housed within a pair of 22-storey towers. There is only one penthouse unit at the top of each tower, and both are 6,663 sq ft. The other penthouse was purchased for $13.9 million ($2,086 psf) back in January 2015 and has remained in the buyer’s possession.

The record loss at the condo was the sole unprofitable deal at Paterson Suites in 2022. At least three other units there changed hands in 2022 and raked in profits that ranged from $493,236 (11%) from the sale of a 1,679 sq ft unit for $4.84 million ($2,884 psf) in February; to $178,600 (4%) from the sale of another 1,679 sq ft unit for $4.39 million ($2,616 psf) in June.

On the other hand, less that 500m away is Boulevard 88, where the most profitable transaction between Dec 6 and 27 last year occurred. This was the sale of a 2,799 sq ft, four-bedroom unit. Based on URA caveats, the unit was sold in a sub-sale for $13.78 million ($4,924 psf) on Dec 9. It had previously been bought from the developer for $10.32 million ($3,688 psf) in July 2019. As a result, the seller raked in a profit of $3.46 million (34%), which also translates to an annualised profit of 9% in over three years.

The sale of the four-bedroom unit at Boulevard 88 on Dec 9 marks the third sub-sale at the luxury condo so far. (Picture: CDL)

Boulevard 88 was launched for sale in 2019 and is still under development. However, this has not stopped a handful of sellers from flipping their units. So far, a total of three units at Boulevard 88 have changed hands, including the sub-sale transaction on Dec 9.

In January 2022, a 2,777 sq ft unit was sold for $12.5 million ($4,501 psf) after it had been bought from the developer for $9.38 million ($3,378 psf) in June 2019. Thus, the seller raked in a $3.12 million profit. The next unit was a 2,766 sq ft unit that fetched $13.38 million ($4,836 psf) when it was sold in May 2022, after it had been bought for $10.48 million ($3,788 psf) in March 2019. The seller earned a $2.86 million profit on the transaction.

Based on the latest available developer sales data, Boulevard 88 is nearly fully sold with a cumulative take-up rate of 86.4%. The project has achieved an average selling price of approximately $4,138 psf. According to data compiled by EdgeProp Singapore, nearby developments with average selling prices close to Boulevard 88’s are 3 Cuscaden ($3,935 psf) and Tomlinson Heights ($3,821 psf). The ultra-luxury Park Nova commands prices of about $4,605 psf.

Coincidentally, the second most profitable transaction during the period of review occurred at Tomlinson Heights, where a 2,745 sq ft, three-bedroom unit was sold for $10.9 million ($3,971 psf) on Dec 19 last year. The unit had been bought for $7.5 million ($2,732 psf) back in April 2017. Hence, the seller raked in a $3.4 million (45%) profit on the transaction, which also translates to an annualised profit of 6.8% over nearly six years.

A three-bedroom unit at Tomlinson Heights was sold for $10.9 million ($3,971 psf) on Dec 19 last year. (Picture: Samuel Isaac Chua/The Edge Singapore)

Tomlinson Heights is a freehold condo at Tomlinson Road in prime District 10. It was completed in 2014. The 70-unit development has a mix of three- and five-bedroom units that range from 2,551 sq ft to 6,738 sq ft.

According to URA caveats, there were at least five resale transactions at Tomlinson Heights in 2022, and all were profitable. The most profitable was the resale on Dec 19, followed by the sale of another 2,745 sq ft, three-bedder for $10.25 million ($3,734 psf) on Aug 19. This earned the seller a $2.75 million profit.

Check out the latest listings near Paterson Suites, Boulevard 88, Tomlinson Heights, The Marq on Paterson Hill, Gramercy Park, New Futura, 3 Cuscaden, Tomlinson Heights, Park Nova

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