The decision to invest in a condo in Singapore has gained momentum among not only local but also foreign investors thanks to the strong economy, stable politics, and exceptional quality of life in the city-state. With a thriving real estate market, there are plenty of opportunities available, and among them, condos are the most sought after due to their convenience, facilities, and promising returns. In this article, we will delve into the advantages, factors to consider, and key steps to take when purchasing a condo in Singapore, as well as explore the latest new condo launches.
The entire 6,867 square feet of the sixth floor of Tong Building on Orchard Road has been sold for $31.33 million, as evidenced by a caveat lodged on September 3rd. This translates to a unit price of $4,562 per square foot, which is the highest recorded for an office space in the prime districts thus far. The deal was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore.
Tong Building is a freehold strata-titled office building standing at 19 storeys in the heart of Orchard Road and Mount Elizabeth. Constructed in 1978 by TG Development, the building is in close proximity to Paragon shopping mall, Mount Elizabeth Hospital and Medical Centre. The buyer of the office floor is Parkway Hospitals Singapore, who are part of Bursa Malaysia-listed private healthcare provider IHH Healthcare. The medical provider is an existing tenant, occupying half of the sixth floor, while the remaining half is occupied by two other medical companies.
According to Yap, there was a significant amount of interest from various bidders including end-users and family offices. The sale price of $4,562 per square foot is a record-breaking figure in terms of unit price, setting a new standard for Singapore’s strata office market. Yap sees this deal as a significant transaction in Singapore’s real estate history, having brokered the previous record high at Solitaire on Cecil in the CBD. In April 2023, three whole strata floors spanning 37,857 square feet were sold at an aggregate price of $162.8 million, or $4,300 per square foot.
Given its location near Mount Elizabeth Hospital and Medical Centre, it makes sense for Parkway Hospitals to acquire the entire sixth floor of Tong Building. Yap predicts a bright future for the strata office market as businesses increasingly look towards flexible work arrangements and hybrid models. She believes that the sector’s resilience and ability to adapt to changing demands bodes well for its future performance.