Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
According to a property title quest, Parkway Hospitals Singapore was the purchaser of the office floor at Tong Property. Parkway Hospitals Singapore belongs to Bursa Malaysia-listed exclusive medical care specialist IHH Healthcare. The medical vendor is an existing tenant in the establishment, taking up fifty percent of the 6th storey. The other half of the ground is occupied by two various other health-related firms.
The whole 6th level of Tong Property on Orchard Road was offered for $31.33 million, based upon a caveat on September 3. The whole strata office floor takes up a section of 6,867 sq ft. The purchase rate reflects a unit price of $4,562 psf, which is the highest psf price for a workplace in the top areas to date. Yap Hui Yee, executive supervisor of financial investment sales and capital markets at Savills Singapore, brokered the transaction.
Furthermore, she brokered the past high at Solitaire on Cecil in the CBD. It was for three entire strata floors spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three floors were brought an aggregate of $162.8 million, or $4,300 psf, in April 2023.
According to Yap, there was considerable interest from a varying pool of bidders, including end-users and home offices.
It makes sense for Parkway Hospitals to purchase the whole sixth level of Tong Building, provided its closeness to Mount Elizabeth Hospice and Medical Centre, which is simply a quick step up the route.
Tong Building is a 19-storey, freehold strata-titled office building at the edge of prime Orchard Roadway and Mount Elizabeth. It was constructed in 1978 by TG Development. Next door is Paragon mall, and Mount Elizabeth Hospital and Medical Centre are behind it.
The $4,562 psf for the sixth floor of Tong Building is “a record-breaking price in psf terms, setting a new benchmark in Singapore’s strata workplace market,” states Savills’ Yap. She takes into account the deal “a landmark transaction in Singapore’s property record”.
Yap anticipates the strata office market to continue its higher trajectory. “With companies increasingly seeking versatile workspace resolutions and adapting to hybrid job models, strata workplaces are becoming much more attractive than ever before,” she says. “The durability of the industry and its ability to satisfy changing requirement suggest a good outlook for the future.”
