Office Floor Tong Building Sold 3133 Mil Setting New High 4562 Psf
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A major transaction has taken place in the prime district of Orchard Road. The entire sixth floor of Tong Building, spanning a total area of 6,867 sq ft, was sold for a whopping $31.33 million, as indicated by a caveat filed on September 3. This translates to a per square foot (psf) price of $4,562, the highest ever recorded for an office space in the prime districts.
The deal was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore. Tong Building is a 19-storey, freehold strata-titled office building situated at the corner of Orchard Road and Mount Elizabeth. It was developed in 1978 by TG Development and is located next to Paragon shopping mall, with Mount Elizabeth Hospital and Medical Centre located behind it.
Parkway Hospitals Singapore, a subsidiary of Bursa Malaysia-listed IHH Healthcare, is the buyer of the entire sixth floor of Tong Building, according to a property title search. This medical provider is an existing tenant in the building, occupying half of the sixth floor, while the remaining half is occupied by two other medical companies.
It is a strategic move for Parkway Hospitals to purchase the entire floor, given its proximity to Mount Elizabeth Hospital and Medical Centre, which is just a short walk away. Yap reveals that there was significant interest from a diverse pool of bidders, including end-users and family offices.
The $4,562 psf price achieved for the sixth floor of Tong Building has set a new benchmark in Singapore’s strata office market, surpassing the previous high of $4,300 psf achieved at Solitaire on Cecil in the CBD. This was for three whole strata floors spanning a total area of 37,857 sq ft, which were sold for a total of $162.8 million in April 2023.
Yap believes that the upward trend in the strata office market will continue. With businesses increasingly seeking flexible workspace solutions and adapting to hybrid work models, strata offices have become more attractive than ever. This resilience and adaptability of the sector bode well for its future outlook.