The strong demand came from local and foreign high net worth individuals.
Shophouse transactions with a value of $5m and above grew 177% QoQ and 281% YoY to reach a record level of $478.6m (US$365m) in the first quarter of 2018, surpassing the previous peak of $363.4m (US$277.4m) witnessed in Q1 2013, Colliers International revealed.
“Demand for such properties has been strong from local and foreign high net worth individuals (HNWIs) as well as property funds and investment companies,” said Colliers International research director and head Tricia Song.
In March, local investment property company 8M Real Estate bought 10 shophouses in prime District 1 near the Singapore River for a total of $82.5m (US$63m). The acquisition will boost its portfolio to more than 40 conservation shophouses, all in Districts 1 and 2, worth about $500m (US$382m).
Another major transaction involved the sale of 273 & 275 South Bridge Road at $26.5m. Silkroad Property Partners bought the property.
“With a positive outlook for residential, commercial and hospitality property sectors, shophouses which are hybrids of these sectors and are scarce in supply, could continue to appeal to boutique investors,” Song said.
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