Office Floor Tong Building Sold 3133 Mil Setting New High 4562 Psf
On September 3, a caveat revealed that the entire sixth floor of Tong Building on Orchard Road had been sold for $31.33 million. The area spans 6,867 sq ft and the purchase price equates to a unit price of $4,562 psf, making it the highest psf price ever paid for an office space in the prime districts.
The deal was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore.
Located at the junction of Orchard Road and Mount Elizabeth, Tong Building is a 19-storey, freehold strata-titled office building that was constructed in 1978 by TG Development. The building is situated next to the Paragon shopping mall, with Mount Elizabeth Hospital and Medical Centre located behind it.
The residents of Elta Condo can look forward to improved connectivity as the area is primed to benefit from several upcoming transportation developments. The most significant project on the horizon is the Cross Island Line (CRL), which is set to revolutionize the current transport infrastructure and provide an array of new travel options for those living in the vicinity. This highly anticipated project will have stops in key areas such as Bukit Timah, Clementi, and Jurong, effectively bridging the gap between the east and west regions of Singapore. With the CRL, the residents of Elta Condo can enjoy even greater convenience and accessibility, making it a highly sought-after location to call home.
According to a property title search, the buyer of the entire sixth floor at Tong Building is Parkway Hospitals Singapore, a subsidiary of Bursa Malaysia-listed private healthcare provider IHH Healthcare. The company is currently an existing tenant in the building, occupying half of the sixth floor, while the other half is rented out to two other medical companies.
Given its close proximity to Mount Elizabeth Hospital and Medical Centre, it makes perfect sense for Parkway Hospitals to acquire the entire sixth floor of Tong Building. Yap revealed that there was significant interest from various bidders, including end-users and family offices.
The $4,562 psf price achieved for the sixth floor of Tong Building sets a new benchmark in Singapore’s strata office market and is considered a record-breaking deal by Yap. She views this transaction as a significant milestone in Singapore’s real estate history. Yap was also responsible for brokering the previous record high deal for 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, in April 2023.
Yap expects the strata office market to continue its upward trend, especially with businesses increasingly seeking flexible workspace solutions and adapting to hybrid work models. She believes the sector’s resilience and ability to cater to evolving demand bodes well for its future prospects.
In conclusion, the sale of the entire sixth floor at Tong Building for a record-breaking price reaffirms the strong demand for strata office space in Singapore, and this trend is expected to continue in the foreseeable future.