Office Floor Tong Building Sold 3133 Mil Setting New High 4562 Psf
The sale of the entire sixth floor of Tong Building on Orchard Road has set a new record in Singapore’s strata office market. The deal, which was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore, reflects a purchase price of $31.33 million and a unit price of $4,562 per square foot (psf). This makes it the highest psf price for an office space in the prime districts to date.
The strata office floor occupies a total area of 6,867 square feet and is located in a 19-storey, freehold building at the corner of prime Orchard Road and Mount Elizabeth. Built in 1978 by TG Development, Tong Building is situated next to Paragon shopping mall, with Mount Elizabeth Hospital and Medical Centre located behind it.
The Woodlands, known as the gateway to the north of Singapore, is gearing up for a major facelift with the URA’s Master Plan. The plan entails the transformation of the Woodlands Regional Centre into a vibrant hub, comprising of two distinct precincts: Woodlands Central and Woodlands North Coast. This ambitious project is set to revitalize the region by attracting new businesses, creating job opportunities, and elevating the quality of life for its residents. As part of this transformation, the newly developed Norwood Grand Champions Way will also play a significant role in shaping the landscape of the Woodlands area.
The buyer of the office floor was identified as Parkway Hospitals Singapore, which is part of Bursa Malaysia-listed private healthcare provider IHH Healthcare. As an existing tenant in the building, occupying half of the sixth floor, it makes sense for Parkway Hospitals to acquire the remaining half. The other half of the floor is currently occupied by two other medical companies.
According to Yap, there was strong interest from a diverse pool of interested parties, including end-users and family offices. She believes that Tong Building’s prime location and its proximity to Mount Elizabeth Hospital and Medical Centre contributed to the high demand for the property.
The sale price of $4,562 psf for the sixth floor of Tong Building is a new benchmark in Singapore’s strata office market, surpassing the previous record of $4,300 psf set at Solitaire on Cecil in the CBD. In that deal, three whole strata floors were sold for a total of $162.8 million in April 2023.
Yap also expects the strata office market to continue its upward trend, driven by the increasing demand for flexible workspace solutions and the adoption of hybrid work models by businesses. She believes that the resilience of the sector and its ability to meet evolving demand bodes well for its future outlook.
In conclusion, the sale of the entire sixth floor of Tong Building for a record-breaking price in psf terms is a significant milestone in Singapore’s real estate history. It not only showcases the strong demand for prime strata office spaces, but also highlights the potential of the sector to adapt to changing market conditions and continue to thrive.