Penthouses Explained

 

Penthouses gain their value from being the sole “top floor” of any development.

The promise of skies above your heads and unblocked views also factor into the high premiums placed on penthouses. Befitting their status, these “bungalows in the sky” are also often decked out with superior finishes. Their larger floor-to-ceiling height in the development, coupled with the double-volume spaces in the living and dining areas, make the residence appear bigger and brighter.

Perhaps the combination of these factors allowed veteran property consultant Steven Choo to conclude that the penthouse premium is derived from “exclusivity, scarcity and snob appeal”.

History

Rooftop gentrification began during the 1920s. As buildings became taller and views more desirable, the luxury penthouse trend found its roots in New York where skyscraper rooftops were transformed into a new class of housing. Singapore’s earliest records of condominiums date back to 1972. In an era where the urban sprawl was fuelled by foreign buyers and motivated by higher return on investments, housing estates were noted numerous but bland.

The rise of condominiums amidst public housing  “stimulate[d] architects into creating imaginative designs which would demonstrate to the people a better way of living”.

The allure of more modern architecture and facilities could have been the reason why a foreign company put out an ad for a penthouse in D9 and D10 in 1973.

At S$1 million (approximately $2.56mil in 2021, adjusted for inflation), the price tag would have been 11,500 times the monthly salary of an average factory worker earning $87 a month.

Types of Penthouses

The allure of these “castles in the sky” has persisted throughout the decades. As the number of penthouses built in Singapore rose, so has the number of penthouse transactions.

The overall quantum for penthouses spans a large range. Single-loaded penthouses start from $3mil while the luxury triplex can exceed $12mil. Many factors such as views, facilities and amenities affect the overall quantum. It would be a complex task to generalise penthouses by their quantums. So instead, we look at the different factors and how they might meet different lifestyles and preferences, in turn reflecting their price target. On average, penthouse sizes have been maintained at 4-bedroom to 6-bedroom units.

Single-loaded penthouses

The size of single-loaded penthouses is immediately apparent as their floor area is sprawled across a single floor. Due to their large size, they can sit atop two stacks combined. For the lucky owners of The Metropolitan Condominium, this means two things: 1) fewer neighbours and a sense of prestige and 2) a wide dual-angled view of the north and south (check out our home tour video for beautiful illustrations of this!). Other developments like Paterson Residence may opt for an open terrace instead of balcony spaces.

Duplexes

As land plots decrease in size, it has become commonplace to see duplex and triplex penthouses over their single-storied counterparts. In general, there are 3 types of duplexes.

First, duplexes with liveable space on both storeys. This layout is perfect for multi-generational living without the maintenance that a landed house necessitates. A “granny room” usually sits at the first storey, and the living room and kitchen are generous in size. Layout configurations like these are usually designed with the aim of maximising internal liveable space. To offset the confines of an enclosed space, balconies are usually included as windows to the outside world.

Second, duplex penthouses with a hybrid 2nd storey. This configuration may sacrifice a bedroom or two in exchange for a larger terrace area. If balconies are available, they may be partially sheltered by the 2nd storey. In our opinion, this complements the rooftop terrace. Alfresco dining or the simple morning coffee is shaded and provides some comfort from Singapore’s sun. Units like those at Yong An Park have lifts serving both storeys but this may not always be the case in newer developments where the second lift storey is put to better use as living spaces or bedrooms.

Third, duplex penthouses with full roof terraces. These offer a good balance between indoor and outdoor space in a high-rise living setting. Having living spaces contained on the first floor minimises the extra effort to take the stairs. In turn, the dedicated roof terrace demarcates a separation between work and play, with views between 270° to 360°. Residents who enjoy hosting guests will be pleased to know this physical separation also minimises disturbances for other family members.

As a whole, the quantum for all duplex penthouses lie between $3mil to $8mil. Despite the variety of duplex penthouse layouts, we notice that price differences are less to do with the type of duplex penthouse, and more affected by the location and the view. Comparing between the Yong An Park duplex and 8 @ Mount Sophia, the former’s $7.5mil price tag is largely due to its location at the River Valley area and its unblocked views — as compared to the latter which is asking just shy of $4mil but at the Dhoby Ghaut area with more enclosed views.

Triplex

For the even more wealthy, triplex penthouse units are theirs for the taking. These units typically come with 2 storeys of liveable space, with some boasting the prestige with an impressive two-storied high ceiling in the living room. It is also common to see a private lift attached to the prestige of triplex penthouses.

The 3rd storey is typically reserved as a roof terrace, but with penthouses trying to differentiate their clients, developments like Amber Skye reward their most valuable clients with a private pool and panoramic 270° degree view overlooking East Coast Park and the neighbouring landed enclave.

Size over age

Buyers were also drawn to penthouse units of older developments with large floor plates. There were at least 15 transactions of penthouses above 3,000 sqft that were completed between 1991 and 2016. These were sold between $4.3m to $18.0m, with a 7,266 sqft penthouse in St. Regis Residences Singapore topping the list. Again, size may not be the only factor at play but consumer preference for such penthouses could be due to the proximity to choice primary schools.

Price variations

In general, there is an inverse relationship between PSF and quantum. Larger penthouses like the triplex penthouse may command a higher overall quantum, but the PSF is lower than their counterparts of smaller sizes and/or on lower floors. This is because developers and sellers hope to keep quantum within a certain price. Imagine if all the unit sizes in a development were valued using a single PSF, larger units will be too expensive and out of the acceptable quantum range that the market is willing to accept. Thanks to free market economics, the overall price range for penthouses is somewhat contained.

Valued amenities like proximity to MRT networks and malls do play a key role in valuing penthouses. Luxury specifications like branded kitchen appliances and high quality amenities also factor into penthouse prices. Although we recognise their importance, there is one factor that trumps them all — the sea view.

Using open source information, in 2007, NUS researchers used viewshed-index analysis to simulate the price difference between condominium units with and without a seaview in the East Coast Area. On average, unobstructed sea view added an average premium of 15% ($233k) to the property price. The researchers suggested that this 15% increase was significant.

Currently in 2021, a quick glance at penthouses listed online reveal a more pronounced difference. Between inward-facing and seaview penthouse units, there is a 40% difference at Cote D’Azur. In sharp contrast, penthouses at Silversea Condo and Amber Park Residences are fully exploiting the premium. The difference between the largest non-penthouse unit and a penthouse climbs to more than 100%.

Rise of the “super penthouses”

Finally, the crème de la crème.

For the truly crazy rich Asians, the allure of “super penthouses” has only strengthened. As of 2019, Singapore holds 6 out of 11 super penthouses in the world. These super penthouses have at least 6,000 sqft built-in area (excluding open areas like roof terrace; or 10,000 sqft total) and is the one and only unit at the top level or levels of a block or development, with at least two designated car park lots and direct access via a private lift lobby.

Who are the buyers of super penthouses?

Those looking for the novelty factor and who choose to brandish their house as a trophy asset.

1) The novelty factor

By definition, a penthouse is the “top floor” of any residential stack. Therefore only one house out of a stack of 20-50 units enjoys unbridled access to the sky. Moreover, public housing does not have a penthouse as the rooftop houses water tanks and solar panels. Penthouses in private housing thus command novelty and somewhat rarity in urban Singapore. Homeowners have a unique vantage point built right into their homes, as they survey the city skyline from their couches.

As Angela Lim, principal designer of SuMisura, shared with Tatler Asia, “The homeowner who finds solace in the view of the city’s skyline will not be wowed in the same way as a beautifully manicured garden on the ground.” Owners of a super penthouse truly have the best of both worlds—the space and luxury of landed property with a view that landed properties cannot offer.

2) Trophy Assets

Trophy assets declare the uniqueness and differentiate each super penthouse. The most recent of trophy assets is the $138 million, 28,000 sqft Marina Bay Penthouse Collection. This gigantic project consists of 5 penthouses, 24 bedrooms and a 25-metre rooftop pool, spanning 5 stories. The largest penthouse in the collection is a 11,012 sq ft triplex or three-storey unit. The viewing deck perched above the rooftop pool is a cheeky way to boast its unrivalled view overlooking the Marina Bay district.

Micro-penthouses

Fortunately, in the past decade or so, penthouses in Singapore have also taken off in another direction. Research from Knight Frank notes that outside of prime areas, penthouses and their private roof terraces have become “a convenient way to bolster saleable floor area” while offering smaller units at two-bedders and sometimes even one-bedders. Knight Frank suggests that smaller penthouses limit pricing to “affordable lump sum levels.”

Future of penthouses

Districts 2, 4, 5

Having mentioned the premium placed on waterfront properties with unblocked sea views, here at PLB we are excited about the developments along the Greater Southern Waterfront. Over the next 5 to 10 years, residential and commercial developments will start sprouting from Pasir Panjang all the way to Keppel Club and Tanjong Pagar.

Developments like the Avenue South Residences are primed for the GSW. At a height of 192m, the 8 exclusive penthouses tower over neighbouring developments. If that is not enough, the residential precinct taking over Keppel Club could open up new opportunities for trophy penthouses that are even closer to the waterfront.

Other buyers interested in the upcoming highlife and nightlife could keep an eye out for developments along the Tanjong Pagar area instead. The multi-use of the Central Business District and close proximity to Pulau Brani will provide amenities catering to potential residential precincts.

District 19

Penthouses may also find a place at the northeastern tip of D19, near the upcoming Punggol Digital District.

JTC Corporation has confirmed that the Punggol Digital District will provide high value-added services including cyber-security, blockchain and fintech industries.

Our eyes are looking at the residential developments just south of the Digital District.

With a Gross Plot Ratio of 2.1 and 3.0 across three plots of land, the heights of these residential developments will be anywhere from 24 storeys to above 36 storeys. If condominiums are really being developed in those residential plots, the penthouse units will have an unblocked view over Coney Island and the Straits of Johor. For tech-savvy owners looking to be in close proximity to the Punggol Digital District but also interested in the sea view of the Straits of Johor, watch this space with us!

Our Take

Penthouses are certainly here to stay in land-scarce Singapore. The urban jungle is only going to increase as Singapore develops suburban town centres in a bid to decentralise the Central Business District. This means that the density of the city is only going to increase and for city dwellers, the escape may not be outwards but upwards. It is for this reason that penthouses will be priced above other housing types, notwithstanding their locations and neighbouring amenities.

For homeowners looking to escape the urban sprawl in the comfort of their homes, or those looking for a home that conveys status and prestige, penthouses are certainly the right properties for you.

As we await new residential developments along the Greater Southern Waterfront and Punggol Digital District, check out our article to decide if a resale or new launch condominium is best for you. Till then, take care and remember the sky’s the limit in skyscraping Singapore!