Last week, it was reported by EdgeProp Singapore that the entire sixth floor of Tong Building on Orchard Road was successfully sold for a record-breaking price of $31.33 million, which equates to a staggering $4,562 per square foot (psf) based on a Sept 3 caveat. The deal was facilitated 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 is Parkway Hospitals Singapore, a member of Bursa Malaysia-listed private healthcare provider IHH Healthcare.
This significant transaction illustrates Parkway Hospital’s plans for expansion as it aligns with their recent acquisition of the freehold office floor. The prime location of the Tong Building, which is a short walking distance from Mount Elizabeth Hospital, also owned by IHH Healthcare, was a key factor in the buyer’s decision. Additionally, Parkway Hospital was able to secure a rare medical change of use approval for the floor, proving to be a major advantage in providing medical services in the area.
Savills’ Yap commented that designated spaces for medical use are limited in Singapore, with less than 2,000 medical suites available and only half of them located in hospital-supported buildings. This leaves approximately 1,000 medical units available on the open market, making this deal even more valuable.
According to Savills, this deal solidifies Orchard Road’s position as a leading center for medical services, with the shopping belt being described as Singapore’s largest medical hub. This trend of medical institutions expanding into key commercial areas is also supported by the rising demand for medical services. Yap added that with the continued growth and demand in the medical sector, Parkway Hospital’s acquisition is positioned to benefit greatly and further solidify Orchard Road’s role as a significant player in Singapore’s healthcare landscape.
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