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 ground of Tong Structure is “a record-breaking cost in psf terms, setting a brand-new benchmark in Singapore’s strata office industry,” states Savills’ Yap. She factors in the agreement “a landmark transaction in Singapore’s property record”.
According to Yap, there was substantial interest from a different pool of prospective buyers, featuring end-users and household offices.
Incidentally, she dealered the previous high at Solitaire on Cecil in the CBD. It was for three whole strata floors covering 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The 3 storeys were brought a total of $162.8 million, or $4,300 psf, in April 2023.
Yap anticipates the strata workplace market to proceed its upward trajectory. “With companies significantly looking for versatile work area resolutions and adjusting to hybrid work models, strata offices are coming to be more appealing than ever before,” she says. “The resilience of the field and its capacity to fulfill changing demand indicate a good expectation for the future.”
The entire 6th storey of Tong Establishment on Orchard Street was sold for $31.33 million, based on a caveat on September 3. The entire strata office floor occupies an area of 6,867 sq ft. The acquisition price mirrors a unit price of $4,562 psf, which is the greatest psf fee for an office in the top areas to day. Yap Hui Yee, executive director of financial investment sales and funding markets at Savills Singapore, serviced the arrangement.
Tong Property is a 19-storey, freehold strata-titled office building at the edge of prime Orchard Road 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.
It works for Parkway Hospitals to purchase the whole sixth floor of Tong Building, given its proximity to Mount Elizabeth Medical Facility and Medical Centre, that is just a brief walk up the route.
According to a real estate title search, Parkway Hospitals Singapore was the buyer of the office floor at Tong Property. Parkway Hospitals Singapore is part of Bursa Malaysia-listed private healthcare specialist IHH Healthcare. The medical vendor is an existing lessee in the establishment, taking up half of the 6th storey. The other fifty percent of the floor is taken up by two other medical companies.
