Loss of $6.2 million from Paterson Suites’ five-bedroom penthouse

The buyer of a 6,663 square ft penthouse apartment with five bedrooms in Paterson Suites closed 2022 in a disappointing manner when the unit was purchased at a price of $13.8 million ($2,071 per sq ft) on the 9th of December 2022. This is a substantial reduction from the original $20 million ($3,002 per square foot) cost when the unit was purchased by developer developer in November of 2011.

In the end, the seller suffered the loss that was $6.2 millions (31%), which is also an annualized cost that was 3.3% over 11 years. It is also the first time the unit has been sold.

The sale is the most profitable sale by Paterson Suites so far. Previous records were one square foot 3-bedroom unit which incurred the $2.84 million (44%) loss when it was sold for $3.62 million ($2,156 per square foot) in June of 2016.

The Lakegarden Residences architect is set to house luxurious residential property that will host 300 sophisticated and elegant apartments.

Paterson Suites can be described as a deluxe freehold condominium located at Paterson Road in District 9. The development was completed in the year 2010. The design was done by the local architectural business DP Architects.

The development is located in an exclusive residential enclave that is located close to The Orchard Road shopping belt that includes luxury condominiums on Grange Road, Orchard Boulevard and Cuscaden Road. The nearby luxury condominiums include the Marq located on Paterson Hill, Gramercy Park and New Futura, while upcoming developments within the vicinity comprise Irwell Hill Residences and Cuscaden Reserve.

Paterson Suites comprises 102 units which are located in two towers that are 22 stories tall. There only one penthouse unit on one of the towers and both have 6,663 square feet. The penthouse on the other hand was bought at $13.9 million ($2,086 per square foot) in January of 2015 and is still in the possession of the buyer.

The highest loss recorded at this condo is the only profitable deal in Paterson Suites in 2022. Three units were sold in 2022, and they earned profits which ranged between to $493,236 (11%) from the sale of a 1,679 square foot property at $4.84 million ($2,884 per sq ft) in February. Then, it went up or $178,600 (4%) from the purchase of a 1,679 sq ft unit at $4.39 million ($2,616 per square foot) during June.

However just 500 meters further away lies Boulevard 88, where the most profitable sale between December 6 and 27, last year was made. This was the purchase of a 2,799 sq . ft 4 bedroom unit. In accordance with URA restrictions the unit was offered for sale in the form of a sub-sale at $13.78 million ($4,924 per sq ft) on December 9. It was purchased by developers developer in exchange for $10.32 million ($3,688 per sq ft) in July of 2019. The seller earned profits that was $3.46 millions (34%), which can translate to an annualized income of 9% over three years.

Boulevard 88 was launched for sale in the year 2019 and is in the process of being developed. But this hasn’t kept a few sellers from selling their units. In the past the total number of buildings on Boulevard 88 have changed hands and included the sub-sale deal on the 9th of December.

In January 2022 2777 sq ft unit was sold at $12.5 million ($4,501 per square foot) after it was taken over by developers developer at $9.38 million ($3,378 per sq ft) in June of 2019. The seller took in $3.12 million gain. The second property was an 2,766 square foot unit that sold for $13.38 million ($4,836 per sq ft) at the time it was auctioned off in May 2022. It was sold after having been purchased at $10.48 million ($3,788 per sq ft) at the end of March in 2019. The seller made $2.86 million profit from the deal.

Based on the most current available developer sales figures, Boulevard 88 is nearly 100% sold with a taking-up at 86.4%. The project has an average sale price of $4,138 per square foot. Based on data collected from EdgeProp Singapore, nearby developments with median selling prices comparable the Boulevard 1988’s include 3 Cuscaden ($3,935 per sq ft) as well as Tomlinson Heights ($3,821 psf). The luxurious Park Nova commands prices of approximately $4,605 per square foot.

In a similar vein, the second-most profitable deal during the time of review was Tomlinson Heights, where a 3,745 sq ft unit was purchased at $10.9 million ($3,971 per square foot) on December 19 the previous year. The property was bought at $7.5 million ($2,732 per square foot) in April 2017. The seller took in $3.4 million (45%) profit on the deal, which amounts to an annualized income in the range of 6.8% over nearly six years.

Tomlinson Heights is a freehold condominium located at Tomlinson Road in prime District 10 in the District 10. It was completed in the year 2014. The 70-unit project has an assortment of three and five-bedroom apartments which range from 2,551 sq feet to 6,738 sq feet.

According to URA restrictions the property was subject to at least five resales within Tomlinson Heights in 2022, and all of them were profitable. The most profitable one was the resale on December 19, which was followed by the sale another 2,745 sq feet three-bedder, for $10.25 million ($3,734 per square foot) on the 19th of August. The seller made $2.75 million gain.