Sale of five-bedroom penthouse at St Thomas Suites results in record $6.3 mil loss

The sale of a five-bedroom penthouse at St Thomas Suites was the most unprofitable resale transaction from March 18 to 25. The 7,686 sq ft unit was sold for $16.03 million ($2,086 psf) on March 21. The penthouse on the 33rd floor had previously fetched $22.33 million ($2,905 psf) when it was last sold in September 2011. As a result, the seller suffered a loss of $6.3 million (28%), which translates to an annualised loss of 2.4% over 13 years.

This penthouse unit was initially sold by the developer for $14.49 million ($1,885 psf) in February 2008 and subsequently sold in 2011. According to caveats, the only other penthouse in the development has remained with the original owner for the past 18 years since it was purchased for $15.16 million ($1,973 psf) in 2007.

Previously, the record for the most unprofitable resale at St Thomas Suites was a 4,672 sq ft unit on the 29th floor that changed hands for $7.25 million ($1,552 psf) in December 2014. It had been bought for $10.34 million ($2,213 psf) in December 2010. Thus, the seller incurred a loss of $3.08 million (29%) or an annualised loss of 8.5% over four years.

The five-bedroom penthouse at St Thomas Suites was sold for $16.03 million ($2,086 psf) on March 21. (Picture: Samuel Isaac Chua/The Edge Singapore)

St Thomas Suites is a freehold condo on Saint Thomas Walk in prime District 9. The 175-unit development was completed in 2010 and comprises twin 33-storey residential towers.

According to caveats, there have been 120 profitable resales at St Thomas Suites in the past 15 years compared to 18 unprofitable transactions. Excluding the recent sale, the last time a unit at St Thomas Suites was sold at a loss was back in 2020. At that time, a 2,013 sq ft unit on the 26th floor fetched $4.1 million ($2,037 psf) when it was sold on Jan 8, but the unit had been bought for $4.15 million ($2,062 psf) in March 2007. The seller incurred a marginal loss of $5,100.

On the other hand, the sale of a four-bedroom unit at Cote D’Azur was the most profitable resale transaction during the week. The 1,539 sq ft unit on the 12th floor was sold for $3.18 million ($2,066 psf) on March 19, but the unit fetched $989,577 ($643 psf) back in July 2002. As a result, the seller made a profit of $2.19 million (221%) on the sale, which translates to an annualised gain of 5.3% over nearly 23 years.

This nearly trumps the record profit at Cote D’Azur, which was set four years ago. On Sept 29, 2021, a 3,412 sq ft unit on the 22nd floor changed hands for $4.8 million ($1,407 psf). This unit had been bought for $2.08 million ($610 psf) in April 2006, resulting in a profit of $2.72 million.

The sale of a 1,539 sq ft unit at Cote D’Azur resulted in a profit of $2.19 million. (Picture: Samuel Isaac Chua/The Edge Singapore)

The 99-year leasehold Cote D’Azur is a 612-unit development on Marine Parade Road in District 15. Based on caveats compiled by EdgeProp Singapore, resale prices at Cote D’Azur have consistently climbed in recent years, from its launch price of about $600 psf in 2002 to about $1,590 psf in April 2022. The average price at the development today is approximately $1,820 psf.

While the rate of price increase at Cote D’Azur has been healthy, other 99-year leasehold condos in the vicinity command higher prices. For example, the neighbouring Silversea, a 383-unit development completed in 2014, has an average price of $2,120 psf. New 99-year developments such as The Shore Residences, a 408-unit condo on Amber Road, have an average resale price of $2,090 psf.

There have been six resale transactions at Cote D’Azur so far this year and all sales have been profitable. Prices range from $2,066 psf for the recent transaction on March 19 to $1,674 psf for a 1,141 sq ft unit that fetched $1.91 million on Feb 21, earning the seller a profit of $560,000.

The second-most profitable transaction during the week took place at Clover by the Park, where a 1,733 sq ft unit was sold for $3.28 million ($1,897 psf) on March 20. The four-bedder on the 15th floor had been bought for $1.27 million ($733 psf) back in July 2008 and the seller raked in a profit of $2.01 million (159%), which translates to an annualised profit of 5.9% over 16.7 years.

A 1,733 sq ft unit at Clover by the Park was sold for $3.28 million ($1,897 psf) on March 20. (Picture: Albert Chua/The Edge Singapore)

This makes it the most profitable resale transaction at Clover by the Park to date. It overtakes the previous record of $1.6 million when another 1,733 sq ft four-bedroom unit changed hands for $2.8 million ($1,616 psf) on Feb 2 last year. The unit had previously fetched $1.19 million ($689 psf) when it was purchased in June 2009.

Clover by the Park is a 99-year leasehold development on Bishan Sterry 25 near Marymount Road in District 20. The 616-unit condo is next to Bishan-Ang Mo Kio Park.

There have been three other resale transactions at Clover by the Park so far this year and each has been profitable. A 1,744 sq ft unit was sold for $3.25 million (1,864 psf) on Jan 6, earning the seller a profit of $1.37 million, while a 1,755 sq ft unit fetched $3.1 million ($1,767 psf) when it was sold on Feb 14 and earned the seller a profit of $1.25 million. The sale of a 1,249 sq ft unit on Feb 28 reaped a profit of $2.48 million when it was sold for $2.49 million ($1,993 psf).