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 Property on Orchard Road was offered for $31.33 million, based upon a warning on September 3. The whole strata office floor utilizes a space of 6,867 sq ft. The acquisition rate shows a unit rate of $4,562 psf, which is the greatest psf fee for an office space in the prime areas to date. Yap Hui Yee, executive supervisor of investment sales and resources markets at Savills Singapore, serviced the deal.
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According to Yap, there was substantial attraction from a diverse pool of prospective buyers, including end-users and home offices.
It works for Parkway Hospitals to purchase the whole 6th level of Tong Building, offered its proximity to Mount Elizabeth Hospital and Medical Centre, that is simply a short step up the street.
Incidentally, she dealered the past high at Solitaire on Cecil in the CBD. It was for three entire strata floors extending 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The 3 storeys were sold for a total of $162.8 million, or $4,300 psf, in April 2023.
The $4,562 psf for the sixth level of Tong Structure is “a record-breaking rate in psf terms, setting a new benchmark in Singapore’s strata workplace industry,” claims Savills’ Yap. She factors in the deal “a landmark operation in Singapore’s property record”.
According to a real property title quest, Parkway Hospitals Singapore was the purchaser of the office level at Tong Property. Parkway Hospitals Singapore is part of Bursa Malaysia-listed private healthcare specialist IHH Healthcare. The medical company is a continuing occupant in the establishment, taking up half of the 6th floor. The other half of the floor is taken up by 2 other medical companies.
Yap expects the strata office marketplace to proceed its higher trajectory. “With businesses increasingly seeking versatile work space services and adapting to hybrid work models, strata workplaces are turning into a lot more appealing than ever,” she mentions. “The strength of the market and its capability to satisfy progressing demand indicate a good expectation for the future.”
Tong Establishment is a 19-storey, freehold strata-titled office complex at the edge of prime Orchard Road and Mount Elizabeth. It was constructed in 1978 by TG Development. Next door is Paragon shopping center, and Mount Elizabeth Hospital and Medical Centre are causing it.
