Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
Tong Property is a 19-storey, freehold strata-titled office building 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 behind it.
The entire 6th floor of Tong Building on Orchard Street was offered for $31.33 million, based on a warning on September 3. The entire strata office level takes up a section of 6,867 sq ft. The purchase cost mirrors a unit cost of $4,562 psf, which is the maximum psf value for a workplace in the top areas to date. Yap Hui Yee, executive manager of financial investment sales and funding markets at Savills Singapore, agented the agreement.
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It works for Parkway Hospitals to purchase the whole sixth floor of Tong Property, provided its distance to Mount Elizabeth Hospital and Medical Centre, which is simply a quick step up the street.
According to Yap, there was significant attraction from a varying pool of prospective buyers, featuring end-users and family offices.
Yap expects the strata office market to continue its upward trajectory. “With businesses significantly seeking adaptable work space options and adapting to crossbreed work models, strata offices are coming to be a lot more desirable than ever before,” she states. “The resilience of the industry and its ability to fulfill changing need suggest an appealing expectation for the future.”
Furthermore, she dealered the past high at Solitaire on Cecil in the CBD. It was for 3 entire strata floors extending 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The 3 levels were sold for a total of $162.8 million, or $4,300 psf, in April 2023.
The $4,562 psf for the 6th floor of Tong Building is “a record-breaking rate in psf terms, establishing a brand-new benchmark in Singapore’s strata workplace market,” claims Savills’ Yap. She considers the deal “a landmark transactions in Singapore’s property record”.
According to a property title search, Parkway Hospitals Singapore was the purchaser of the office level at Tong Property. Parkway Hospitals Singapore is part of Bursa Malaysia-listed private medical care specialist IHH Healthcare. The medical provider is an existing renter in the facility, occupying half of the sixth storey. The other half of the ground is filled by 2 other health-related companies.
