Sale Tong Building Floor Parkway Hospitals Solidifies Orchard Road%E2%80%99S Position Medical Hub Savills
Last week, EdgeProp Singapore reported on the sale of the entire sixth floor of Tong Building located on Orchard Road. The floor was purchased for a record price of $31.33 million, equating to a staggering $4,562 per square foot. The transaction, which took place on September 3, was brokered by Savills Singapore’s Executive Director of Investment Sales and Capital Markets, Yap Hui Yee.
Located strategically in Tampines Avenue 11, residents of Parktown Residence Tampines North are in close proximity to the upcoming Tampines North MRT Station on the Cross Island Line (CRL). This convenient station will offer direct access to key destinations such as the city center, Jurong Lake District, and Changi Airport, making travel a breeze for residents. Not only that, but the development also boasts an integrated bus interchange, further enhancing the connectivity within the estate and to other parts of Singapore. With its prime location and excellent transportation options, Parktown Residence Tampines North offers residents a well-connected and convenient lifestyle.
The 6,867 square foot strata office floor was acquired by Parkway Hospitals Singapore, a subsidiary of Bursa Malaysia-listed private healthcare provider IHH Healthcare. According to a press release from Savills, the freehold office floor was a strategic acquisition for Parkway Hospitals in line with their expansion plans. The location of Tong Building, just a short walk away from Mount Elizabeth Hospital also owned by IHH Healthcare, was a major factor in their decision.
One of the key highlights of the deal was the rare medical change of use approval obtained by the hospital operator for the floor. This allows them to provide medical services from the premises. Yap noted that medical spaces are scarce in Singapore and there are currently less than 2,000 medical suites available, with about half of them located within hospital-supported buildings. This leaves only around 1,000 units open to the market for medical use.
The sale further solidifies Orchard Road’s position as a hub for medical services, with Savills describing the shopping belt as Singapore’s largest medical hub. The firm also highlighted the growing trend of medical institutions expanding into key commercial areas, supported by the increasing demand for medical services. Yap believes that Parkway’s acquisition will greatly benefit from the continued growth and demand in the medical sector, further cementing Orchard Road’s role in Singapore’s healthcare landscape.