Shophouse volume jumps as average prices sink to $4,663

Total transactions rose to 54 in H2 2025 despite 27% slide in psf prices.

Shophouse transaction volume rose in the second half of 2025, but average prices declined as more deals were completed at lower values, according to Knight Frank.

The consultancy recorded 54 transactions in H2, up from 42 in H1, but average prices fell 27% from $6,431 per sq ft (psf) to $4,663 psf.

For the full year, 96 shophouses changed hands with a total value of about $879.7m and an average price of $5,471 psf.

PropNex data showed activity eased at the end of the year, with 22 caveated transactions worth $158.3m in Q4, down from 27 in Q3. Full-year caveated sales reached $703.6m from 98 deals.

Knight Frank said the price drop reflected a higher share of transactions below $10m as buyers targeted smaller assets. PropNex noted continued price gaps between buyers and sellers and cautious investor sentiment.

Most deals involved freehold shophouses, although prices in this segment also lowered. Leasehold transactions rose in number but values were generally stable.

Leasing activity weakened in Q4, with PropNex reporting rental transactions of $8.25m and a median rent of $6.50 psf per month, down 1.8% quarter-on-quarter.

Knight Frank expects transaction value in 2026 to stay below $1b, citing selective investor demand and tighter pricing expectations.

"Looking ahead, the shophouse sector could see some upside potential in 2026, supported by a cautiously optimistic economic outlook and Singapore’s safe haven appeal," PropNex said.

"PropNex expects commercial shophouses to continue to be on the radar of buyers, including family offices and institutional investors. The shophouse market tends to be resilient, as their scarcity and heritage value help to support prices over the long term," it addded.

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