Shophouse property deals muted in Q3
Transactions during the quarter were down by half.
Commercial shophouse market activity is muted in the third quarter of the year with only 34 transactions recorded during the quarter, down from 67 in the second quarter PropNex reported.
Of the 34 shophouse transactions, District 8 saw the highest sales at 17 units. It also led in terms of transaction values with a total of $134.4m in deals.
Read more: Shophouse transaction volume drops 49.3% QoQ in Q3
For the quarter, transaction value stood at $330m, representing a 33.2% quarter-on-quarter and 20% year-on-year decline.
In the first nine months, PropNex reported there were 153 deals, which dropped from 193 deals in the same period in 2021.
Transaction value in the first nine months of 2022 slipped slightly to $1.29b from $1.31b in 2021.
“While URA Realis caveat data showed that fewer deals have been transacted in the quarter, the number of deals is likely to become higher as several transactions have not been captured,” PropNex noted.
“The pool of shophouses put up for sale is observed to be shrinking with many owners holding onto these low-risk assets, while capitalising on buoyant occupier demand for shophouse space.”
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