Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
The whole 6th level of Tong Building on Orchard Road 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 cost shows a unit cost of $4,562 psf, which is the highest psf value for a workplace in the prime areas to date. Yap Hui Yee, executive supervisor of financial investment sales and resources markets at Savills Singapore, serviced the transaction.
Furthermore, she brokered the former high at Solitaire on Cecil in the CBD. It was for 3 entire strata levels extending 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The 3 storeys were brought an aggregate of $162.8 million, or $4,300 psf, in April 2023.
Tong Building is a 19-storey, freehold strata-titled office complex at the corner of prime Orchard Roadway and Mount Elizabeth. It was built in 1978 by TG Development. Next door is Paragon mall, and Mount Elizabeth Hospital and Medical Centre are responsible for it.
According to Yap, there was significant attraction from a different pool of prospective buyers, including end-users and household offices.
The Arcady @ Boon Keng 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 exclusive healthcare specialist IHH Healthcare. The medical provider is an occurring tenant in the facility, covering fifty percent of the 6th level. The other fifty percent of the ground is taken up by 2 various other medical business.
Yap expects the strata workplace market to continue its higher trajectory. “With businesses increasingly seeking flexible workspace options and modifying to hybrid work models, strata offices are becoming more attractive than ever,” she says. “The durability of the sector and its ability to fulfill growing demand imply an appealing expectation for the future.”
The $4,562 psf for the 6th ground of Tong Structure is “a record-breaking cost in psf terms, establishing a new benchmark in Singapore’s strata office market,” states Savills’ Yap. She factors in the deal “a landmark operation in Singapore’s real estate history”.
It works for Parkway Hospitals to purchase the entire 6th level of Tong Property, offered its closeness to Mount Elizabeth Hospital and Medical Centre, that is just a brief walk up the street.
