Singapore office floor in Orchard Road sells for record rate
Singapore’s strata office market is a relatively niche segment of its commercial property sector
AN OFFICE floor in a building in Singapore’s Orchard Road is being sold for a record rate, in a sign of continued investor interest in the city-state’s prime market.
The sixth storey of the Tong Building, which is located next to a luxury mall on the retail strip, is being sold for S$31.3 million, according to a property filing seen by Bloomberg News. That works out to S$4,562 per square foot (psf) based on its 6,867 square feet of floor area.
Other owners of the remaining floors in the building include major luxury watch brands like Chopard.
Singapore’s strata office market is a relatively niche segment of its commercial property sector, which has largely skirted the downturns seen in other major cities.
Still, high interest rates and significant valuation gaps have weakened appetite for big-ticket transactions in the city, making smaller spaces more appealing for some investors.
The office floor is being sold by Nanyang Holdings, according to the filing. The purchaser is Parkway Hospitals Singapore, a private healthcare group.
The transacted rate surpasses a previous benchmark of S$4,325 psf set last year for a full floor office space at Solitaire on Cecil, a commercial development under construction in the Central Business District, according to data compiled by property consultancy Cushman & Wakefield. BLOOMBERG
Share with us your feedback on BT's products and services
