COTD: Singapore shophouse transactions up 5% in Q2 2025

The total transaction value surged 179% to $332.9m.

The shophouse market in Singapore saw modest growth in the second quarter of 2025, with 21 transactions completed—5% more than in the first quarter and matching the volume in the same period last year.

The total transaction value surged 179% to $332.9m, up from $119.2m in Q1 2025.

However, for the first half of 2025, the total number of shophouse transactions was 41, down 6.8% compared to the same period in 2024. Investor interest increased in Q2, but many buyers held back, waiting for prices to soften amid concerns over trade tariffs.

The total sales value for the first half reached $452.1m, the highest since the second half of 2023, driven by three large deals worth over $200m collectively.

Notable transactions included Timemerchant Capital’s $100m purchase of 21 Carpenter, a 48-key boutique hotel, Lotus One Investment’s $80m acquisition of Duxton Reserve Hotel, and CWL Properties’ $25.8m purchase of a stake in Coliwoo Hotel Gay World.

Investors showed a clear preference for shophouses used for living or hospitality purposes, moving away from food and beverage properties due to tough operating conditions.

About 85% of Q2 sales involved properties priced below $15m. Districts 8 and 15 were the most active, accounting for half of all transactions, with attractive entry prices below $10m.

Additionally, 85% of the shophouses sold in Q2 were on land with 999-year or freehold tenure.

Leasing demand fell 4.9% to 800 leases in Q2, but median rents rose 3.1% to $6.68 per square foot per month.

“Whilst there has been some clarity on the trade tariffs, the situation on sectoral tariffs is still evolving,” said Lee Sze Teck, senior director, data analytics at Huttons.

“Investors are likely to stay on the sidelines unless a compelling asset is available,” he added. “Given the spate of closures of F&B businesses, investors may prefer tenants in other trades.”