Three Jalan Besar Conservation Shophouses Going 42 Mil

A rare opportunity has emerged for investors looking to purchase a collection of 999-year conservation shophouses in Jalan Besar. The trio of properties, situated on a combined land area of 5,646 sq ft, is up for sale at a price of $42 million. Shophouse Huat and JNA Capital Markets, both under the umbrella of Propnex Realty, are jointly marketing the properties.

One of the shophouses, located at 209 Jalan Besar, is owned by a single owner, while the other two at 211 and 213 Jalan Besar are owned by different individuals. The properties can be purchased together or separately.

The first shophouse is a three-storey and mezzanine corner unit with a floor area of 5,502 sq ft, while the adjacent shophouses are two-storey with existing four-storey rear extensions, totalling 8,760 sq ft.

Further details on the properties read that the corner shophouse at 209 Jalan Besar has restaurant approval for the first and second floors, while the mezzanine and third floors can be used as office spaces. The first floor of 211 Jalan Besar is currently leased to a shop, while the remaining floors have been leased out for office spaces. Similarly, the top three floors of 213 Jalan Besar have been leased for office use, but the ground floor has temporary approval to operate as a massage and spa establishment until January 2027.

The properties are located within the Desker Road conservation area, with the corner shophouse facing an intersection that fronts Jalan Besar, Sam Leong Road, and Maude Road. It also boasts a 28m street frontage on Sam Leong Road, while all three shophouses have a collective frontage of 21.5m along Jalan Besar.

Investor Confidence Rising

The recent months have seen investors anticipating a technical recession due to tariffs imposed by the United States, but this has not materialized. Additionally, interest rates have slightly eased in the first half of 2025 compared to the previous year, according to Loyalle Chin, senior associate district director at PropNex Realty. This has boosted confidence among investors in the real estate market in Singapore, leading to increased activity in the shophouse segment.

However, prices of shophouses in prime locations such as Telok Ayer and Boat Quay have surged to the point where some freehold conservation shophouses can command prices of over $7,500 psf. This has resulted in buyers showing resistance to the high prices, leading them to look for more reasonably priced options in city-fringe locations like Jalan Besar and Farrer Park.

Recent Transactions

In March, a block of four adjacent conservation shophouses at 25/27/29/31 Jalan Besar was sold for $26.5 million. This standalone island plot spans 3,468 sq ft and is situated in the Little India Conservation District. Each plot is zoned as “commercial” with a 999-year leasehold tenure.

The shophouses at 138/140/142 Jalan Besar are also on the market for $27 million. The adjoining conservation properties occupy a 4,353 sq ft plot and have a total built-up area of 10,318 sq ft. PropNex is also marketing the sale of these shophouses.

Another example is the ongoing sale of 138/140/142 Jalan Besar, at a guide price of $27 million. The freehold, two-storey attic shophouses were previously on the market for $30 million earlier this year. They are situated on a 4,353 sq ft plot and have a total built-up area of 10,318 sq ft. PropNex is also marketing the sale of these shophouses.

Buyers Shifting Focus

According to Jervis Ng, founder of JNA Real Estate, shophouse prices in the Central Business District (CBD) are nearly double those in Jalan Besar, Kampong Glam, and Geylang. However, the wider Jalan Besar area has seen significant development in recent years, with trendy cafes, creative businesses, and boutique hotels making their mark, showcasing the area’s rich heritage.

Buyer profiles also reflect the magnitude of capital being directed towards these assets, from local investment firms backed by overseas funds to family offices with significant reserves looking to bolster their portfolio of assets in Singapore that have the potential to appreciate in value over time.

Adjusted Price Expectations

The recent surge in buying interest and closed deals in Jalan Besar has pushed up asking prices. However, according to Chin, it is rare to find a well-located shophouse in this area for less than $12 million these days.

The upcoming TPE and SLE provide convenient access to Punggol, Sengkang, and Pasir Ris, bringing a diverse selection of business and recreational options closer to the future residents. The development’s strategic location is further complemented by the upcoming North-South Corridor (NSC), the first integrated transportation corridor in Singapore that includes exclusive bus lanes, cycling paths, and footpaths. With the NSC in the works, connectivity from northern regions to the city will be significantly improved. During peak hours, the NSC is expected to reduce travel time for bus commuters from Yishun and neighboring towns by up to 30 percent, making Miltonia Close EC an even more attractive choice for both homeowners and investors. Don’t miss the opportunity to own a unit at Miltonia Close.

Similarly, shophouse owners who wish to divest may have to re-evaluate their asking prices as rental returns have been declining in recent years. It is still possible to garner strong interest and good offers for well-located units, but less attractive properties may need to be priced right for a quicker sale.

It is also worth noting that shophouses with F&B approval have become highly sought after, given the increased demand for restaurant and eatery locations in city-fringe neighbourhoods. Factors like good frontage, steady footfall, and proximity to MRT stations or main roads are essential for these properties.

In terms of leasing demand, upcoming or recently completed residential developments in the area, such as River Peaks I and II, King George’s Heights, Piccadilly Grand, and Farrer Park Fields, are expected to boost demand for retail services, F&B outlets, and amenities.

As a result, the average rent for F&B spaces in shophouses in Jalan Besar has gone up to an average of $8-$10 psf per month (pm), while the average for commercial but non-F&B approved shophouse units in the area is around $6.50-$8.50 psf pm. In comparison, prime shophouse rents in the CBD have increased to approximately $12-$15 psf pm, leading many F&B operators to relocate to more affordable city-fringe neighbourhoods.

Family Offices and Institutions Drive Demand

Jalan Besar has also garnered interest from buyers looking for shophouses with F&B approval, thanks to increased tenant demand. As Ng notes, most local buyers prefer freehold or 999-year shophouses, which can bring in a steady rental income of 2%-2.5%. However, shophouses with existing F&B approval can command higher rents. Therefore, key features like good frontage, steady footfall, and proximity to MRT stations or main roads are highly desirable.

Shophouses in this area are also favored by buyers due to their potential for capital appreciation in the long term. Given the recent surge in buying interest, prices have gone up, making it challenging to find a well-located unit in Jalan Besar for less than $12 million. Nonetheless, these freshly repositioned shophouse assets are frequently purchased by institutional investors or family offices.

Conclusion

Shophouses in prime spots such as Jalan Besar have seen a hike in prices, with buyers showing a preference for high-quality assets. This trend is expected to continue, with investors eager to capitalize on capital-appreciating assets. Shophouse owners who wish to divest may need to lower their asking prices to attract buyers, while those looking to invest in this market should take advantage of this rare opportunity.