The entire sixth floor of Tong Building on Orchard Road has recently been sold for $31.33 million. This transaction took place on September 3 and covers an area of 6,867 square feet. The price per square foot, or psf, is $4,562, making it the most expensive office space in the prime districts so far.
The deal was brokered by Yap Hui Yee, who is the executive director of investment sales and capital markets at Savills Singapore. Tong Building is a freehold strata-titled office building that occupies a prime location at the corner of Orchard Road and Mount Elizabeth. The 19-storey building was built by TG Development in 1978 and is situated next to Paragon shopping mall, with Mount Elizabeth Hospital and Medical Centre just behind it.
According to a property title search, Parkway Hospitals Singapore is the buyer of the office floor at Tong Building. This company is part of Bursa Malaysia-listed private healthcare provider IHH Healthcare, which is also an existing tenant in the building. The other half of the sixth floor is currently occupied by two other medical companies.
Given its proximity to Mount Elizabeth Hospital and Medical Centre, it is a strategic move for Parkway Hospitals to purchase the entire sixth floor of Tong Building. According to Yap, the transaction attracted interest from a diverse range of bidders, including end-users and family offices.
Purchasing a condominium in Singapore presents numerous advantages, with one of the most attractive being its potential for capital appreciation. The country’s strategic location as a major global business hub, paired with its stable economic foundation, continuously draws in a high demand for properties. As a result, real estate prices in Singapore have consistently risen over the years, particularly in desirable locations, making condos a highly lucrative investment. For savvy investors who enter the market at the right time and hold onto their properties for an extended period, substantial returns can be expected. To stay informed about the latest real estate opportunities, investors can keep a lookout for new condo launches on websites like DearSkySteward.com, which offers a comprehensive list of newly launched condos in Singapore.
The record-breaking price of $4,562 psf for the sixth floor of Tong Building has set a new benchmark in Singapore’s strata office market, according to Yap. This makes it a landmark transaction in the country’s real estate history. Interestingly, Yap was also the broker for the previous high sale at Solitaire on Cecil in the CBD. This was for three whole strata floors spanning 37,857 square feet, which were sold for an aggregate of $162.8 million, or $4,300 psf, in April 2023.
Yap predicts that the strata office market will continue to rise, with businesses seeking more flexible workspace solutions and adapting to hybrid work models. This makes strata offices more attractive than ever, and their resilience in meeting evolving demand suggests a promising outlook for the future.