Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
The whole 6th storey of Tong Property on Orchard Street was retailed for $31.33 million, based upon a warning on September 3. The whole strata office level takes up a section of 6,867 sq ft. The purchase cost mirrors a unit cost of $4,562 psf, which is the highest psf price for an office space in the prime sectors to day. Yap Hui Yee, executive manager of financial investment sales and resources markets at Savills Singapore, brokered the deal.
It makes sense for Parkway Hospitals to purchase the whole 6th level of Tong Property, provided its closeness to Mount Elizabeth Hospital and Medical Centre, which is just a short step up the route.
Incidentally, she dealered the former high at Solitaire on Cecil in the CBD. It was for 3 whole strata floors spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three storeys were yielded an aggregate of $162.8 million, or $4,300 psf, in April 2023.
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 mall, and Mount Elizabeth Hospital and Medical Centre are behind it.
According to Yap, there was substantial attraction from a diverse pool of bidders, including end-users and household offices.
Yap expects the strata workplace marketplace to continue its upward trajectory. “With companies increasingly looking for flexible office solutions and modifying to hybrid work systems, strata offices are turning into a lot more appealing than ever,” she says. “The durability of the market and its capacity to meet evolving need suggest a good outlook for the future.”
The $4,562 psf for the sixth floor of Tong Structure is “a record-breaking rate in psf terms, setting a brand-new benchmark in Singapore’s strata workplace industry,” says Savills’ Yap. She considers the deal “a landmark transactions in Singapore’s realty history”.
According to a property title quest, Parkway Hospitals Singapore was the purchaser of the office floor at Tong Property. Parkway Hospitals Singapore belongs to Bursa Malaysia-listed exclusive medical care service provider IHH Healthcare. The medical company is a continuing occupant in the building, taking up fifty percent of the sixth storey. The other half of the ground is taken up by two various other health care companies.
