Shophouse sales hit 28-year low

Transaction value fell 48% to $88m.

Shophouse sales fell to a 28-year low in the first quarter of 2026, as cautious investors and price mismatches weighed on deal activity.

PropNex Research said 13 caveated shophouse transactions were recorded in the quarter, down 43.5% from 23 deals in the fourth quarter of 2025. Sales volume was also 35% lower than the 20 transactions recorded a year earlier.

The deals amounted to about $88m, down 48% from around $170m in the previous quarter. PropNex said this was the lowest quarterly shophouse sales value since the first quarter of 2009, when 39 transactions worth $64.9m were recorded.

The largest caveat transaction was the $16m sale of a three-storey conservation shophouse on East Coast Road, translating to $8,911 psf on land area. A two-storey conservation shophouse in Telok Ayer was also sold for $15.7m, or $9,272 psf on land area.

Overall average transacted prices fell 12.6% QoQ to $4,963 psf on land area. Prices in Districts 1 and 2 fell 15.5% to $9,272 psf, whilst Districts 14 and 15 declined 10% to $3,894 psf.

Leasing activity also softened, with 779 rental contracts signed in the quarter, down 1.8% from the fourth quarter of 2025. Rental contract value fell 3.2% to $8.12m, whilst median monthly rent declined 1.5% to $6.39 psf.

PropNex said the market is expected to face a more challenging 2026 amid macroeconomic headwinds and geopolitical tensions, although Singapore’s safe-haven appeal could support demand for well-located and investment-grade shophouses.