Singapore’s record setting US$24 million office sale on Orchard Road signals investor interest

An office floor in a building on 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 story of the Tong Building, which is located next to a luxury mall on the retail strip, is being sold for S$31.3 million (US$24 million), according to a property filing seen by Bloomberg News. That works out to S$4,562 (US$3,500) per square foot based on its 6,867 square feet (638 square meters) 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 the smaller spaces more appealing for some investors.

The office floor is being sold by Nanyang Holdings Pte, according to the filing. The purchaser is Parkway Hospitals Singapore Pte, a private healthcare group.