Archive for category: Misc

The shophouse market remained relatively subdued in the second quarter of 2025, recording only 18 transactions according to data from PropNex. This shows a 10% drop from the 20 deals in the previous quarter and a 14.3% decline from the same period last year.

PropNex explains that this decline is attributed to the mismatch in price expectations between buyers and sellers, compounded by the uncertainties caused by trade tariffs and conflicts in the Middle East.

The 18 shophouses that were sold in 2Q2025 had a total sale value of $127 million, which is an increase of 6.6% from the previous quarter but a 35% drop from the same period last year.

However, PropNex notes that the actual number of shophouse sales in the second quarter is likely to be higher as the caveats for some transactions may not have been lodged yet. These include the reported sales of boutique hotels, 21 Carpenter and The Duxton Reserve Singapore.

District 8, which covers Little India and Jalan Besar, saw the most shophouse transactions with a total value of $53.1 million. The highest recorded transaction was a shophouse in the Bukit Pasoh Conservation Area sold for $12 million in April.

Despite the overall decline in deals, there were more big-ticket transactions in the second quarter, with 14 shophouses sold for at least $5 million compared to nine in the previous quarter.

In terms of leasing, 800 shophouse rental contracts were signed in 2Q2025, which is a 4.9% drop from the previous quarter. The total value of these rental contracts also decreased from $9.1 million to $8.9 million. The monthly median rental for shophouses in the second quarter was $6.68 psf, reflecting a 3.1% increase from the previous quarter but a 2.2% decrease from the same period last year.

According to a separate report by Knight Frank, there were a total of 42 shophouse transactions in the first half of 2025, with a total value of $462.9 million. This shows a decline in both volume and sales value compared to the second half of 2024, which recorded 50 deals worth $520.2 million. Prices remained relatively flat, with a 0.5% increase to $6,431 psf on land in the first half of 2025.

The two biggest shophouse transactions in the first half of the year were the reported sales of 21 Carpenter and The Duxton Reserve Singapore. Knight Frank’s Executive Director for Capital Markets, Mary Sai, observes that with challenges faced by the F&B sector, there is a growing attractiveness of living sector assets in shophouses among investors.

The TPE and SLE have made Punggol, Sengkang, and Pasir Ris easily accessible, providing future residents with a wide range of options for work and leisure. Additionally, with the North-South Corridor (NSC) in the works, connectivity from the northern regions to the city will become even more efficient. The NSC, which will be Singapore’s first integrated transport corridor, will include dedicated bus lanes, cycling routes, and pedestrian paths. This development brings even more value to Miltonia Close EC, as it will reduce travel time for bus commuters from Yishun and surrounding towns by up to 30 percent during peak hours. As a result, both homeowners and investors will be drawn to Miltonia Close EC Khatib.

Of the 42 shophouse deals in the first half of 2025, 37 were freehold units with a total sales value of $358.4 million, compared to 49 freehold deals worth $480.8 million in the second half of 2024. There were also five leasehold shophouse transactions worth $104.6 million, compared to six deals worth $39.4 million in the second half of 2024. Despite the lower volume, leasehold shophouses had a higher sales value due to an increase in prices.

Knight Frank also notes that nine shophouses were sold in the first half of 2025 with a capital appreciation of over 100%. The highest recorded was the sale of 63 Arab Street for $7.7 million in May, which was held for 23 years and saw a return of 600%.

Looking ahead, Knight Frank projects a slowdown in transactional activity for the rest of 2025 due to the escalating economic uncertainty. PropNex shares a similar outlook and adds that the government’s decision to extend the Seller’s Stamp Duty holding period for private residential properties may drive investor interest towards alternative assets such as shophouses, as they are not subject to the SSD.