Property sector's new buzzword: Penthouse

Move over, shoebox apartments. Penthouse units have claimed the spotlight ever since the launch of a 4,349 sq ft penthouse suite at an executive condominium (EC) in Tampines last month.

The unit, including a 1,600 sq ft roof terrace, was sold for $2.05 million - the most expensive EC penthouse ever sold.

But just what is a penthouse unit? The definition is fuzzy, apart from the apartment being rather swanky and on the top floor. No fixed criteria apply and the term is mainly used as a marketing tool.

Penthouses generally have a large floor area compared with the other units in a project.

For instance, the "penthouses" in 68-unit Kembangan Suites are as small as 635 sq ft, said Ms Chia Siew Chuin, director of research and advisory at Colliers International. Other units in that project, one- and two-bedders, are also smaller, at between 344 and 624 sq ft.

Even selected HDB blocks in some estates including Bishan and Strathmore Avenue in Queenstown can be considered as having penthouse units, Ms Chia said, though the quantity of HDB penthouses is very limited.

However, other analysts set the minimum size at between 2,000 and 2,300 sq ft.

A penthouse usually includes a balcony or roof terrace, a private lift lobby and more than two bedrooms. It also has two or three storeys, analysts added.

For example, an 8,740 sq ft penthouse in Ardmore Park is being marketed for $35 million. A 13,000 sq ft penthouse in Chatsworth Court has an asking price of $50 million while another 11,200 sq ft penthouse at Boulevard Vue is listed at $68 million.

Penthouses appeal to a select group of buyers for their spaciousness, exclusivity and accompanying bragging rights, analysts said.

The typical penthouse buyer is often a wealthy executive, though lately, multi-generational families have pooled their cash to buy such units as well.

But the downside is that penthouse owners who do not intend to occupy the unit for the long term may find it harder to sell it later, for a few reasons.

One is that penthouse buyers are a select group of people, so the resale value of a penthouse depends on limited demand.

Another factor is that the proliferation of so-called "penthouses" in many developments is undermining the term's prestige.

Third, there are very few comparable sales and leases that can be used to benchmark prices because of the scarcity and exclusivity of penthouses.

Source: The Straits Times –12 January 2013