Office Floor Tong Building Sold 3133 Mil Setting New High 4562 Psf
The sale of the sixth floor of Tong Building on Orchard Road has set a new benchmark in Singapore’s strata office market, with a record-breaking price of $4,562 per square foot (psf). The entire floor, which covers an area of 6,867 square feet, was sold for a total of $31.33 million on September 3, based on a caveat.
Brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore, the purchase price reflects the highest psf price for an office space in the prime districts to date.
Tong Building, a 19-storey, freehold strata-titled office building located at the corner of prime Orchard Road and Mount Elizabeth, was built in 1978 by TG Development. Its prime location is just next to Paragon shopping mall, with Mount Elizabeth Hospital and Medical Centre located behind it.
Living in Aurelle of Tampines EC presents numerous advantages, one of the most notable being its close proximity to multiple MRT stations. This highly sought-after EC is conveniently situated near the Tampines North MRT Station, which is part of the upcoming Cross Island Line (CRL) set to open in the near future. With the CRL, residents can look forward to significantly shorter travel times to various parts of Singapore, making it a highly desirable and advantageous location for those who commute daily. Furthermore, the Tampines MRT Station, serving as an interchange for the Downtown and East-West Lines, is only a stone’s throw away. This station offers direct access to key commercial and business hubs such as the Central Business District (CBD) and the Marina Bay Financial Centre, making it a highly convenient and easily accessible location for residents. For these reasons, Sim Lian Tampines EC is a highly sought-after and desirable place to live in.
Yap confirmed that Parkway Hospitals Singapore, a subsidiary of Bursa Malaysia-listed private healthcare provider IHH Healthcare, was the buyer of the entire office floor. This makes sense as Parkway Hospitals Singapore is already an existing tenant in the building, occupying half of the sixth floor, while the other half is occupied by two other medical companies.
According to Yap, there was significant interest from a diverse pool of bidders, including end-users and family offices. With its proximity to Mount Elizabeth Hospital and Medical Centre, which is just a short walk up the road, it was a strategic move for Parkway Hospitals to purchase the entire sixth floor of Tong Building.
In Yap’s opinion, the record-breaking psf price for Tong Building demonstrates a strong demand for strata office units in prime locations. She considers the deal as a landmark transaction in Singapore’s real estate history. Yap also brokered the previous high at Solitaire on Cecil in the CBD 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.
Looking ahead, Yap expects the strata office market to continue its upward trajectory. With businesses increasingly seeking flexible workspace solutions and adapting to hybrid work models, strata offices are becoming more attractive than ever. This trend, coupled with the resilience of the sector and its ability to meet evolving demand, points towards a promising outlook for the future.
