Last week, it was reported by EdgeProp Singapore that a significant transaction took place at Tong Building on Orchard Road. The entire sixth floor of the building was sold for a record-breaking $31.33 million, at an impressive rate of $4,562 per square foot, according to a Sept 3 caveat.
The brokerage responsible for this deal was Savills Singapore, with Yap Hui Yee, executive director of investment sales and capital markets, playing a crucial role. The 6,867 square feet of strata office space were acquired by Parkway Hospitals Singapore, a member of Bursa Malaysia-listed private healthcare provider IHH Healthcare.
In a statement released by Savills, it was revealed that the purchase of the freehold office floor by Parkway Hospital was in line with their expansion plans. The location of Tong Building, which is a short distance away from Mount Elizabeth Hospital owned by IHH Healthcare, makes it an ideal addition to their portfolio.
Furthermore, Parkway Hospital was able to obtain a rare medical change of use approval for the floor, indicating their intentions to provide medical services in the area. Yap from Savills notes that such spaces designated for medical use are scarce in Singapore, with less than 2,000 medical suites available in the market. She highlights that approximately 50% of these are located within buildings that are supported by hospitals, leaving only 1,000 units available on the open market.
Savills also adds that this transaction solidifies Orchard Road’s position as a hub for medical services, with the renowned shopping belt being described as Singapore’s largest medical hub. This trend of medical institutions expanding into key commercial areas, driven by a high demand for medical services, is on the rise.
Yap believes that Parkway Hospital’s acquisition will greatly benefit from the ongoing growth and demand in the medical sector, further reinforcing Orchard Road’s prominent role in Singapore’s healthcare landscape. She concludes by stating that this deal is a testament to the continuous development and progress of the area.
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