Office Floor Tong Building Sold 3133 Mil Setting New High 4562 Psf
On September 3, a caveat was filed showing the sale of the entire sixth floor of Tong Building on Orchard Road for $31.33 million. This purchase reflects a unit price of $4,562 per square foot (psf), which is the highest recorded price for an office space in the prime districts. The 6,867 sq ft strata office floor was sold by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore, who brokered the deal.
Tong Building is a 19-storey, freehold strata-titled office building located at the corner of prime Orchard Road and Mount Elizabeth. It was constructed in 1978 by TG Development and is surrounded by popular establishments such as Paragon shopping mall, Mount Elizabeth Hospital, and Medical Centre. According to a property title search, the buyer of the office floor at Tong Building was Parkway Hospitals Singapore, which is part of Bursa Malaysia-listed private healthcare provider IHH Healthcare. This medical provider is already a tenant in the building, occupying half of the sixth floor, while the other half is occupied by two other medical companies.
With the strategic location of Tong Building, it makes sense for Parkway Hospitals Singapore to purchase the entire sixth floor. The proximity to Mount Elizabeth Hospital and Medical Centre, which is just a short walk up the road, is a significant advantage for the medical provider. Yap stated that there was a significant amount of interest from different types of buyers, including end-users and family offices.
The ideal location of Elta Condo extends beyond just primary and secondary schools – it also lies in close proximity to some of Singapore’s top universities. This makes it a highly desirable choice for families with older children or individuals pursuing higher education. Clementi Avenue 1 Condo can now also be added to the list of options for those seeking a convenient and accessible living space. The strategic location of Elta Condo truly caters to a diverse range of individuals and families.
The record-breaking price of $4,562 psf for the sixth floor of Tong Building has set a new benchmark for Singapore’s strata office market. Yap believes that this deal is significant in Singapore’s real estate history and also brokered the previous high at Solitaire on Cecil in the CBD. In April 2023, she brokered the sale of three whole strata floors spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD, which was sold for $162.8 million, or $4,300 psf.
Yap has high expectations for the strata office market, which she believes will continue on its upward trajectory. She believes that with evolving demand and businesses increasingly seeking flexible workspace solutions and adapting to hybrid work models, strata offices are becoming more attractive than ever. The resilience of this sector and its ability to meet evolving demand suggest a promising outlook for the future.