Savills Singapore, is pleased to announce its successful brokerage of a significant transaction at Tong Building – a prime floor with medical approval at S$31.33 million. This prized asset has been secured by Parkway Hospitals, marking a noteworthy development in the ongoing rejuvenation of Singapore's Orchard Road.
Strategic Rejuvenation of Orchard Road
Orchard Road, renowned for its vibrant retail and commercial landscape, continues to evolve as Singapore's premier medical hub. This strategic rejuvenation aims to modernise and diversify the district's offerings, enhancing its appeal to medical, businesses, and consumers.
This latest transaction underscores the district's transformation and solidifies its status as a crucial centre for medical services. Parkway’s acquisition at Tong Building is a strategic move that aligns with its expansion plans, reinforcing Orchard Road's reputation as a dynamic and versatile medical node. The freehold status of Tong Building adds significant value, providing long-term stability and investment potential in a prime location.
Orchard Road: Singapore's Largest Medical Hub
Orchard Road has emerged as the largest medical hub in Singapore, featuring a concentration of top-tier medical facilities and specialists.
The district's prominence in the healthcare sector is further bolstered by the latest addition of Parkway’s presence, reflecting the growing trend of medical institutions expanding into key commercial areas. This development not only supports the increasing demand for medical services but also reinforces Orchard Road's role as a central player in Singapore's healthcare landscape.
Ms. Yap Hui Yee, Executive Director, Savills Investment Sales & Capital Markets, says: “We are thrilled to have facilitated this key transaction at Tong Building. There are fewer than 2,000 medical suites in Singapore, with approximately 50% located within hospital-supported buildings. This leaves around 1,000 medical units available on the open market, highlighting the scarcity and value of such medical spaces. The floor at Tong Building, which comes with a rare medical change of use approval, is ideally suited for Parkway’s expansion. The building’s proximity to Mount Elizabeth Hospital further boosts its strategic value.”
"Parkway’s acquisition is poised to benefit from the continued growth and demand in the medical sector, reinforcing Orchard Road’s role as a central player in Singapore’s healthcare landscape. We look forward to seeing the continued transformation and success of this iconic district," she adds.