Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
Yap expects the strata office industry to proceed its upward trajectory. “With businesses increasingly looking for versatile office options and adjusting to crossbreed job models, strata offices are coming to be a lot more appealing than ever before,” she says. “The durability of the industry and its ability to fulfill evolving requirement indicate a promising overview for the future.”
Lakegarden Residences floor plan
Incidentally, she dealered the past 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 three floors were brought a total of $162.8 million, or $4,300 psf, in April 2023.
Tong Establishment is a 19-storey, freehold strata-titled office building at the edge of prime Orchard Road and Mount Elizabeth. It was constructed in 1978 by TG Development. Next door is Paragon shopping mall, and Mount Elizabeth Hospital and Medical Centre are responsible for it.
The entire 6th floor of Tong Establishment on Orchard Street was offered for $31.33 million, based on a caveat on September 3. The entire strata office level occupies an area of 6,867 sq ft. The acquisition cost shows a unit price of $4,562 psf, which is the maximum psf price for an office in the top sectors to date. Yap Hui Yee, executive manager of investment sales and funding markets at Savills Singapore, agented the transaction.
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 exclusive healthcare service provider IHH Healthcare. The medical company is an occurring lessee in the building, covering half of the sixth level. The other half of the floor is filled by two various other medical business.
It makes sense for Parkway Hospitals to buy the whole sixth level of Tong Building, provided its closeness to Mount Elizabeth Hospital and Medical Centre, which is just a quick walk up the street.
According to Yap, there was considerable attention from a varying pool of prospective buyers, consisting of end-users and household offices.
The $4,562 psf for the sixth level of Tong Building is “a record-breaking price in psf terms, establishing a brand-new benchmark in Singapore’s strata office market,” states Savills’ Yap. She factors in the agreement “a landmark transaction in Singapore’s property record”.
