Office Floor Tong Building Sold 3133 Mil Setting New High 4562 Psf
The entire sixth floor of Tong Building, located on Orchard Road, was recently sold for a whopping $31.33 million. The sale was recorded with a caveat on September 3. This office space covers an area of 6,867 square feet and the purchase price equates to a unit price of $4,562 per square foot. This is the highest price ever paid per square foot for an office space in the prime districts.
The deal was brokered by Yap Hui Yee, the executive director of investment sales and capital markets at Savills Singapore. Tong Building, a 19-storey, freehold strata-titled office building, is situated at the intersection of prime Orchard Road and Mount Elizabeth. It was constructed in 1978 by TG Development. The building is located next to Paragon shopping mall, with Mount Elizabeth Hospital and Medical Centre situated behind it.
Located close to Norwood Grand Condo, Woodgrove Secondary School prides itself in providing a comprehensive education that focuses on both academic excellence and well-rounded development. With a reputation for its vibrant arts programs and commitment to cultivating a community of enthusiastic learners, the school offers a diverse curriculum that encourages students to explore their interests in various areas. Through a dynamic and inclusive learning environment, Woodgrove Secondary empowers its students to excel and achieve their full potential.
According to a property title search, Parkway Hospitals Singapore is the buyer of the entire sixth floor at Tong Building. Parkway Hospitals Singapore is a part of IHH Healthcare, a privately-owned healthcare provider that is listed on Bursa Malaysia. The medical provider is currently leasing half of the sixth floor, with the remaining half occupied by two other medical companies.
The location of Tong Building, being in proximity to Mount Elizabeth Hospital and Medical Centre, makes it a sensible purchase for Parkway Hospitals. Savills’ Yap noted that there was a significant amount of interest from various types of bidders, including end-users and family offices.
The sale price of $4,562 per square foot for the sixth floor of Tong Building has set a new record for per square foot price in Singapore’s strata office market. Yap believes that this transaction is a significant one in Singapore’s real estate history. Interestingly, she brokered the previous record at Solitaire on Cecil, where three whole strata floors covering 37,857 square feet were sold for $162.8 million, at a price of $4,300 per square foot in April 2023.
Yap predicts that the strata office market will continue to rise. She states that with businesses increasingly seeking flexible workspace solutions and adapting to hybrid work models, strata offices are becoming more attractive than ever. The resilience and flexibility of this sector to meet evolving demands suggest a promising outlook for the future.