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

January 6, 2023


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.

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 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.

More at: https://www.edgeprop.sg/property-new...rs-62-mil-loss