Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
According to a real estate title search, Parkway Hospitals Singapore was the investor of the office floor at Tong Building. Parkway Hospitals Singapore belongs to Bursa Malaysia-listed exclusive healthcare service provider IHH Healthcare. The medical company is an existing tenant in the establishment, covering fifty percent of the 6th floor. The other half of the floor is filled by two other health care business.
Yap expects the strata office marketplace to continue its higher trajectory. “With businesses increasingly looking for flexible work space solutions and adjusting to hybrid job models, strata offices are turning into a lot more attractive than ever,” she mentions. “The resilience of the sector and its capability to satisfy changing requirement indicate a good overview for the future.”
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.
Incidentally, she dealered the previous high at Solitaire on Cecil in the CBD. It was for three entire strata floors covering 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The 3 storeys were brought a total of $162.8 million, or $4,300 psf, in April 2023.
According to Yap, there was significant attraction from a different pool of bidders, featuring end-users and household workplaces.
The $4,562 psf for the 6th level of Tong Structure is “a record-breaking price in psf terms, setting a new benchmark in Singapore’s strata workplace market,” claims Savills’ Yap. She considers the offer “a landmark transactions in Singapore’s realty record”.
The entire sixth storey of Tong Building on Orchard Street was offered for $31.33 million, based on a warning on September 3. The whole strata office level takes up a section of 6,867 sq ft. The acquisition cost shows a unit rate of $4,562 psf, which is the highest psf price for an office in the prime sectors to date. Yap Hui Yee, executive supervisor of investment sales and resources markets at Savills Singapore, serviced the transaction.
It works for Parkway Hospitals to buy the entire sixth floor of Tong Building, offered its distance to Mount Elizabeth Medical Facility and Medical Centre, which is just a short walk up the road.
