Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
The whole sixth floor of Tong Establishment on Orchard Road was retailed for $31.33 million, based upon a warning on September 3. The whole strata office ground utilizes a section of 6,867 sq ft. The acquisition price shows a unit price of $4,562 psf, which is the maximum psf price for an office space in the prime sectors to day. Yap Hui Yee, executive supervisor of financial investment sales and capital markets at Savills Singapore, brokered the deal.
It makes sense for Parkway Hospitals to buy the whole 6th floor of Tong Building, offered its closeness to Mount Elizabeth Medical Facility and Medical Centre, which is just a short walk up the route.
Yap expects the strata workplace market to continue its higher trajectory. “With businesses significantly seeking versatile workspace resolutions and modifying to hybrid work models, strata workplaces are turning into more appealing than ever,” she says. “The durability of the market and its ability to meet evolving demand suggest an appealing expectation for the future.”
The Botany at Dairy Farm floor plan
According to a real estate title quest, Parkway Hospitals Singapore was the buyer of the office floor at Tong Property. Parkway Hospitals Singapore belongs to Bursa Malaysia-listed private healthcare provider IHH Healthcare. The medical vendor is a continuing lessee in the building, covering fifty percent of the sixth level. The other fifty percent of the ground is occupied by 2 various other medical companies.
According to Yap, there was considerable attraction from a different pool of prospective buyers, consisting of end-users and family offices.
Incidentally, she brokered the former high at Solitaire on Cecil in the CBD. It was for three entire strata levels spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three levels were brought an aggregate of $162.8 million, or $4,300 psf, in April 2023.
The $4,562 psf for the 6th ground of Tong Building is “a record-breaking rate in psf terms, setting a new benchmark in Singapore’s strata office industry,” says Savills’ Yap. She factors in the agreement “a landmark operation in Singapore’s property record”.
Tong Property is a 19-storey, freehold strata-titled office building at the edge 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 behind it.
