Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
The entire 6th level of Tong Property on Orchard Street was sold for $31.33 million, based upon a caveat on September 3. The entire strata office ground utilizes a space of 6,867 sq ft. The purchase price shows a unit price of $4,562 psf, which is the highest psf price for an office space in the top sectors to day. Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore, serviced the agreement.
Furthermore, she brokered the past high at Solitaire on Cecil in the CBD. It was for 3 entire strata levels spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three levels were yielded an aggregate of $162.8 million, or $4,300 psf, in April 2023.
It makes sense for Parkway Hospitals to purchase the whole 6th level of Tong Property, given its proximity to Mount Elizabeth Hospital and Medical Centre, which is simply a short walk up the street.
According to a real estate title search, Parkway Hospitals Singapore was the purchaser of the office floor at Tong Property. Parkway Hospitals Singapore is part of Bursa Malaysia-listed private medical care specialist IHH Healthcare. The medical vendor is an occurring occupant in the facility, covering half of the 6th level. The other fifty percent of the ground is occupied by two other health-related companies.
Tong Building is a 19-storey, freehold strata-titled office building at the edge 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 responsible for it.
According to Yap, there was significant attention from a varying pool of bidders, including end-users and home offices.
The $4,562 psf for the sixth level of Tong Structure is “a record-breaking rate in psf terms, setting a new benchmark in Singapore’s strata workplace market,” says Savills’ Yap. She takes into account the deal “a landmark operation in Singapore’s property record”.
Yap assumes the strata office market to proceed its higher trajectory. “With companies significantly seeking versatile work area options and adapting to hybrid work models, strata offices are coming to be a lot more attractive than ever,” she states. “The durability of the market and its capability to satisfy progressing requirement suggest a good outlook for the future.”
