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 level of Tong Building is “a record-breaking price in psf terms, setting a new benchmark in Singapore’s strata office industry,” claims Savills’ Yap. She takes into account the deal “a landmark transaction in Singapore’s property history”.
The entire sixth floor of Tong Establishment on Orchard Road was sold for $31.33 million, based upon a caveat on September 3. The entire strata office level occupies an area of 6,867 sq ft. The acquisition cost reflects a unit rate of $4,562 psf, which is the maximum psf price for a workplace in the prime areas to date. Yap Hui Yee, executive director of investment sales and resources markets at Savills Singapore, serviced the agreement.
It works for Parkway Hospitals to buy the entire 6th level of Tong Building, given its closeness to Mount Elizabeth Hospice and Medical Centre, which is simply a short step up the road.
Furthermore, she brokered the past high at Solitaire on Cecil in the CBD. It was for three entire strata levels covering 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.
Yap anticipates the strata office market to continue its higher trajectory. “With businesses significantly seeking flexible workspace solutions and modifying to hybrid job models, strata workplaces are coming to be a lot more desirable than ever before,” she mentions. “The resilience of the industry and its capability to fulfill changing need imply an appealing outlook for the future.”
According to Yap, there was significant attraction from a different pool of bidders, consisting of end-users and family workplaces.
According to a property title search, Parkway Hospitals Singapore was the purchaser of the office level at Tong Property. Parkway Hospitals Singapore belongs to Bursa Malaysia-listed exclusive medical care service provider IHH Healthcare. The medical vendor is an occurring lessee in the facility, occupying half of the sixth storey. The other half of the floor is filled by 2 other medical business.
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 causing it.