Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
Tong Building is a 19-storey, freehold strata-titled office building at the corner of prime Orchard Roadway and Mount Elizabeth. It was constructed in 1978 by TG Development. Next door is Paragon shopping center, and Mount Elizabeth Hospital and Medical Centre are behind it.
Incidentally, she brokered the past high at Solitaire on Cecil in the CBD. It was for 3 entire strata floors spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three storeys were yielded a total of $162.8 million, or $4,300 psf, in April 2023.
It makes sense for Parkway Hospitals to buy the whole sixth floor of Tong Property, given its closeness to Mount Elizabeth Hospice and Medical Centre, which is simply a brief walk up the road.
According to Yap, there was considerable interest from a diverse pool of bidders, featuring end-users and home offices.
Yap anticipates the strata office marketplace to proceed its higher trajectory. “With companies increasingly looking for flexible work space solutions and modifying to crossbreed work systems, strata offices are becoming much more appealing than ever before,” she says. “The resilience of the market and its capacity to meet progressing need suggest a good outlook for the future.”
The $4,562 psf for the sixth ground of Tong Structure is “a record-breaking price in psf terms, setting a new benchmark in Singapore’s strata office market,” states Savills’ Yap. She factors in the offer “a landmark transaction in Singapore’s realty history”.
The whole 6th level of Tong Building on Orchard Street was offered for $31.33 million, based upon a caveat on September 3. The entire strata office floor occupies an area of 6,867 sq ft. The purchase price shows a unit price of $4,562 psf, which is the maximum psf fee for an office space in the prime sectors to date. Yap Hui Yee, executive manager of financial investment sales and funding markets at Savills Singapore, serviced the deal.
According to a real estate title quest, Parkway Hospitals Singapore was the purchaser of the office floor at Tong Property. Parkway Hospitals Singapore becomes part of Bursa Malaysia-listed exclusive medical care provider IHH Healthcare. The medical provider is an existing tenant in the establishment, covering half of the 6th floor. The other half of the floor is occupied by two other medical companies.
