Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
The $4,562 psf for the 6th level of Tong Building is “a record-breaking price in psf terms, setting a new benchmark in Singapore’s strata office market,” says Savills’ Yap. She considers the deal “a landmark operation in Singapore’s property record”.
According to Yap, there was substantial attraction from a different pool of prospective buyers, including end-users and household workplaces.
Incidentally, she brokered the former high at Solitaire on Cecil in the CBD. It was for 3 entire strata levels extending 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three storeys were brought an aggregate of $162.8 million, or $4,300 psf, in April 2023.
The whole sixth level of Tong Property on Orchard Road was offered for $31.33 million, based upon a caveat on September 3. The whole strata office level takes up a section of 6,867 sq ft. The acquisition cost mirrors a unit rate of $4,562 psf, which is the greatest psf value for an office space in the prime areas to date. Yap Hui Yee, executive manager of investment sales and capital markets at Savills Singapore, agented the arrangement.
Yap anticipates the strata workplace marketplace to continue its higher trajectory. “With businesses significantly looking for adaptable work space services and modifying to hybrid work systems, strata offices are becoming more attractive than ever before,” she says. “The strength of the field and its capability to satisfy changing need imply a promising overview for the future.”
Tong Establishment is a 19-storey, freehold strata-titled office complex at the corner of prime Orchard Roadway and Mount Elizabeth. It was built in 1978 by TG Development. Next door is Paragon shopping center, and Mount Elizabeth Hospital and Medical Centre are responsible for it.
According to a property title quest, Parkway Hospitals Singapore was the purchaser of the office floor at Tong Property. Parkway Hospitals Singapore is part of Bursa Malaysia-listed exclusive medical care provider IHH Healthcare. The medical provider is a continuing tenant in the building, occupying half of the 6th storey. The other half of the ground is occupied by 2 other health-related business.
It works for Parkway Hospitals to purchase the whole sixth floor of Tong Property, offered its proximity to Mount Elizabeth Medical Facility and Medical Centre, that is simply a brief walk up the route.
