Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
Tong Establishment 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 behind it.
According to Yap, there was substantial interest from a varying pool of prospective buyers, featuring end-users and home offices.
According to a real estate title quest, Parkway Hospitals Singapore was the buyer of the office level at Tong Building. Parkway Hospitals Singapore becomes part of Bursa Malaysia-listed exclusive medical care specialist IHH Healthcare. The medical provider is a continuing lessee in the building, covering fifty percent of the sixth storey. The other fifty percent of the ground is taken up by two various other health care firms.
The entire 6th level of Tong Building on Orchard Street was offered for $31.33 million, based on a warning on September 3. The entire strata office ground utilizes a space of 6,867 sq ft. The purchase price shows a unit cost of $4,562 psf, which is the greatest psf price for an office in the prime areas to day. Yap Hui Yee, executive director of financial investment sales and resources markets at Savills Singapore, brokered the transaction.
The $4,562 psf for the 6th ground of Tong Building is “a record-breaking cost in psf terms, setting a brand-new benchmark in Singapore’s strata office market,” states Savills’ Yap. She factors in the offer “a landmark operation in Singapore’s real estate record”.
Incidentally, she brokered the previous high at Solitaire on Cecil in the CBD. It was for three entire strata levels spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The 3 floors were sold for an aggregate of $162.8 million, or $4,300 psf, in April 2023.
It makes sense for Parkway Hospitals to acquire the entire sixth floor of Tong Building, provided its closeness to Mount Elizabeth Hospice and Medical Centre, which is just a quick walk up the route.
Yap assumes the strata workplace industry to continue its upward trajectory. “With companies increasingly looking for flexible work area resolutions and adapting to crossbreed job models, strata offices are coming to be more attractive than ever,” she says. “The resilience of the industry and its capability to satisfy changing demand indicate a promising outlook for the future.”
