Savills is excited to announce the sale of two exceptional freehold office floors located on levels 9 and 10 in the prestigious Tong Building, situated in the heart of Orchard Road. The total strata area of the two floors is approximately 13,734 square foot.
This offering represents an extremely rare opportunity to acquire prime office space in one of Singapore’s most sought-after commercial districts.
In light of the recent Urban Redevelopment Authority (URA) regulations disallowing further strata subdivision in Orchard Road and some parts of the Central Business District, these freehold office floors stand out as a significant investment. The limited availability of such properties in this prime location underscores their value and desirability.
Savills is proud to share that it has successfully brokered a total of three floors, ie levels 6, 9 and 10 in Tong Building within a remarkable six-week period. The sale of Level 6 was transacted last month for $31.33 million, or $4,562 per square foot. The cumulative sales of Levels 6, 9, and 10 reached approximately $100 million, with an average blended price of $4,845 per square foot.
The overwhelming response and competitive bidding for these floors have highlighted the strong demand for freehold office space in Orchard Road. Key bidders include:
• Family Offices: Many family offices are seeking wealth preservation strategies and recognise the intrinsic value of strata offices in this globally iconic shopping belt.
• Medical Groups and Users: With Orchard being the largest medical node in Singapore, medical professionals are increasingly drawn to this area, capitalising on its accessibility and status.
• Owner-Occupiers: Numerous owner-occupiers are keen on establishing their corporate headquarters in Orchard Road, benefiting from the prestige and strategic location that this area offers.
Yap Hui Yee, Executive Director, Savills Investment Sales & Capital Markets, comments: “We are thrilled to have brokered these 3 notable strata floors transactions at Tong Building in the past six weeks. Savills has witnessed firsthand the robust interest in this iconic commercial building. The freehold status of the office floors adds significant long-term value, making it a compelling choice for those seeking to preserve their wealth and capital. Investors are also attracted to Tong Building due to its prime and strategic location in Orchard Road, the world’s renowned shopping belt that offers unparalleled accessibility and visibility.”
“Moreover, the regular layouts and column-free spaces available in Tong Building provide flexibility for a range of potential uses, from corporate offices to creative workspaces. This adaptability, coupled with Orchard’s recent revitalisation efforts aimed at enhancing the shopping and business environment, have attracted both local and international businesses. This rejuvenation story adds another layer of value to the properties, making them an enticing investment for savvy buyers. The robust interest from buyers underscores the property’s appeal as a sound investment in one of Singapore’s most prestigious locales." Ms Yap adds.