Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
The whole 6th storey of Tong Building on Orchard Street was offered for $31.33 million, based upon a warning on September 3. The entire strata office floor occupies a section of 6,867 sq ft. The acquisition cost shows a unit cost of $4,562 psf, which is the maximum psf price for an office space in the prime districts to date. Yap Hui Yee, executive supervisor of financial investment sales and funding markets at Savills Singapore, brokered the transaction.
Incidentally, she brokered the past high at Solitaire on Cecil in the CBD. It was for three whole strata floors spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three levels were sold for a total of $162.8 million, or $4,300 psf, in April 2023.
According to Yap, there was substantial attraction from a different pool of prospective buyers, consisting of end-users and family offices.
The $4,562 psf for the 6th ground of Tong Building is “a record-breaking cost in psf terms, setting a new benchmark in Singapore’s strata workplace industry,” says Savills’ Yap. She takes into account the offer “a landmark transaction in Singapore’s property history”.
Tong Property is a 19-storey, freehold strata-titled office complex at the corner of prime Orchard Road 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 responsible for it.
Yap expects the strata workplace market to continue its higher trajectory. “With businesses increasingly looking for versatile office resolutions and modifying to hybrid job systems, strata workplaces are becoming much more desirable than ever before,” she says. “The durability of the field and its capability to meet growing demand suggest a good expectation for the future.”
According to a real estate title search, Parkway Hospitals Singapore was the buyer of the office level at Tong Property. Parkway Hospitals Singapore belongs to Bursa Malaysia-listed private medical care specialist IHH Healthcare. The medical provider is a continuing occupant in the establishment, covering fifty percent of the 6th level. The other fifty percent of the ground is filled by 2 other health-related business.
It makes sense for Parkway Hospitals to buy the whole 6th level of Tong Building, provided its proximity to Mount Elizabeth Hospital and Medical Centre, which is simply a short step up the street.
