“A record-breaking sale of an entire floor at Tong Building on Orchard Road took place on September 3, with the total purchase price reaching $31.33 million. The deal, brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore, marks the highest price per square foot achieved for an office space in the prime district to date. The entire strata office floor, spanning 6,867 sq ft, was sold for $4,562 psf.
Tong Building, a 19-storey freehold office building at the corner of Orchard Road and Mount Elizabeth, was built in 1978 by TG Development. The prime location, next to Paragon shopping mall and Mount Elizabeth Hospital and Medical Centre, makes it a highly desirable commercial property.
According to a property title search, the buyer of the office floor at Tong Building is Parkway Hospitals Singapore, a subsidiary of Bursa Malaysia-listed private healthcare provider IHH Healthcare. The company is an existing tenant in the building, occupying half of the sixth floor, while the other half is occupied by two other medical companies.
Yap reports that there was significant interest from a diverse pool of bidders, including end-users and family offices. She believes that the purchase price achieved for the sixth floor of Tong Building sets a new benchmark in Singapore’s strata office market, and considers it a landmark transaction in the country’s real estate history.
Interestingly, Yap also brokered the previous record-high sale of three whole strata floors spanning 37,857 sq ft at Solitaire on Cecil in the CBD. This deal, which took place in April 2023, achieved $4,300 psf, making it the previous highest price per square foot for a strata office space.
Yap foresees continued growth in the strata office market, as businesses increasingly seek flexible workspace solutions and adapt to hybrid work models. She believes that the resilience of the sector and its ability to meet evolving demand bodes well for its future prospects.
In conclusion, the sale of the entire sixth floor of Tong Building at a record-breaking price per square foot reflects the attractiveness and potential of Singapore’s strata office market.”
When it comes to investing in a condo, financing plays a crucial role. Luckily, Singapore has a variety of mortgage choices available. However, it is important to keep in mind the Total Debt Servicing Ratio (TDSR) framework, which sets a limit on the amount of loan a borrower can take based on their income and current debt commitments. Familiarizing oneself with the TDSR and seeking guidance from financial advisors or mortgage brokers can assist investors in making well-informed decisions regarding their financing options and avoiding excessive borrowing. Investors can also check out Singapore Projects for more insight into the market.