When it comes to investing in Singapore, it is crucial for international investors to have a clear understanding of the country’s property regulations and restrictions. While foreigners have more freedom to purchase condos, owning landed properties is subject to stricter rules. It is worth noting that foreign buyers also have to pay the Additional Buyer’s Stamp Duty (ABSD) of 20% for their first property purchase. However, despite these extra expenses, the stability and potential for growth in the Singapore real estate market remain alluring to foreigners, making properties like Singapore Condo a popular investment option.
In a recent article by EdgeProp Singapore, it was reported that the entire sixth floor of Tong Building on Orchard Road was successfully sold for a record-breaking price of $31.33 million, equivalent to $4,562 per square foot. The sale was recorded on Sept 3.
The deal was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore. The buyer of the 6,867 square feet strata office floor was Parkway Hospitals Singapore, a member of Bursa Malaysia-listed private healthcare provider IHH Healthcare.
Savills released a statement confirming that the acquisition of the freehold office floor by Parkway Hospitals Singapore aligns with the company’s expansion plans. The strategic location of Tong Building, within walking distance from Mount Elizabeth Hospital also owned by IHH Healthcare, was a key factor in the purchase.
Parkway Hospitals Singapore obtained a rare medical change of use approval for the floor, with plans to provide medical services in the near future. According to Yap, finding suitable spaces for medical use in Singapore is a challenge as there are less than 2,000 medical suites available, with only about half of them located within buildings supported by hospitals. This leaves approximately 1,000 medical units available in the open market.
Savills highlights that this transaction affirms Orchard Road’s position as a major hub for medical services. The renowned shopping belt is considered as Singapore’s largest medical hub, with a growing trend of medical institutions expanding into key commercial areas to cater to the increasing demand for medical services.
Yap further adds, “Parkway’s acquisition is well-positioned to benefit from the continuous growth and demand in the medical sector, further solidifying Orchard Road’s role as a central player in Singapore’s healthcare landscape.”