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 price in psf terms, establishing a new benchmark in Singapore’s strata workplace industry,” claims Savills’ Yap. She factors in the agreement “a landmark transactions in Singapore’s real estate history”.
According to a real property title search, Parkway Hospitals Singapore was the purchaser of the office floor at Tong Property. Parkway Hospitals Singapore is part of Bursa Malaysia-listed exclusive healthcare specialist IHH Healthcare. The medical provider is an occurring tenant in the building, covering fifty percent of the sixth storey. The other fifty percent of the ground is filled by two other health-related business.
Tong Building 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 mall, and Mount Elizabeth Hospital and Medical Centre are behind it.
The entire sixth level of Tong Property on Orchard Street was offered for $31.33 million, based upon a caveat on September 3. The entire strata office floor takes up a space of 6,867 sq ft. The purchase cost shows a unit rate of $4,562 psf, which is the greatest psf fee for an office space in the top areas to date. Yap Hui Yee, executive director of financial investment sales and resources markets at Savills Singapore, agented the arrangement.
It makes sense for Parkway Hospitals to purchase the whole sixth floor of Tong Property, given its distance to Mount Elizabeth Hospital and Medical Centre, that is just a short walk up the road.
Furthermore, she dealered the former high at Solitaire on Cecil in the CBD. It was for 3 entire strata floors covering 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three storeys were brought a total of $162.8 million, or $4,300 psf, in April 2023.
Yap assumes the strata office industry to continue its higher trajectory. “With businesses increasingly seeking adaptable office solutions and adapting to crossbreed work systems, strata workplaces are becoming more appealing than ever,” she mentions. “The durability of the market and its capability to satisfy progressing need imply an appealing expectation for the future.”
According to Yap, there was significant interest from a varying pool of prospective buyers, including end-users and household workplaces.
