Office Floor Tong Building Sold 3133 Mil Setting New High 4562 Psf
Renovation, location and record-breaking prices
The entire sixth floor of Tong Building, located at the prime Orchard Road, was recently sold for a whopping $31.33 million.The transaction was based on a caveat dated September 3, and the sale of this strata office floor, which spans over 6,800 square feet, reflects a unit price of $4,562 per square foot. This makes it the highest psf price for an office space in the prime districts to date.
Spearheading the deal was Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore. According to Yap, this sale is a landmark transaction in Singapore’s real estate history, as it sets a new benchmark for psf prices in the strata office market.
Located just steps away from Tampines MRT Station, Tampines 1 is a vibrant and contemporary shopping mall that offers a delightful blend of fashion, food, and entertainment. Fashionistas will be spoilt for choice with an array of popular brands such as H&M, Sephora, and The Editor’s Market. When it comes to dining, the mall has a diverse range of eateries including Genki Sushi, Hot Tomato, and Brotzeit German Bier Bar & Restaurant. For families with young children, the mall’s rooftop water playground, inspired by animals, is the perfect spot for some fun in the sun. Tampines 1 is easily accessible from Parktown Residence, which is just a short 5-minute drive or 15-minute walk away. Don’t forget to also check out the exciting Parktown Residence Capitaland, situated nearby, for a complete lifestyle experience.
Tong Building, a freehold, 19-storey strata-titled office building, was built in 1978 by TG Development. It is situated at the corner of prime Orchard Road and Mount Elizabeth, and next to Paragon shopping mall.
According to a property title search, the buyer of the office floor at Tong Building is Parkway Hospitals Singapore, which is part of Bursa Malaysia-listed private healthcare provider IHH Healthcare. Previously an existing tenant in the building, Parkway Hospitals Singapore saw the opportunity to purchase the entire sixth floor of Tong Building, given its close proximity to Mount Elizabeth Hospital and Medical Centre.
Interestingly, this sale surpasses the previous record-breaking psf price at Solitaire on Cecil in the CBD, which Yap also brokered. In April 2023, three whole strata floors spanning 37,857 sq ft at Solitaire on Cecil were sold for an aggregate of $162.8 million, or $4,300 psf.
Yap believes that the strata office market will continue to flourish, as businesses are increasingly seeking flexible workspace solutions and adapting to hybrid work models. With its prime location and attractive features, strata offices are becoming even more desirable, making their future outlook promising.