Shophouse transactions in 1Q2023 saw a decline in volume but experienced a rise in the average transacted value per shophouse. According to Huttons Asia’s May 1 research report, shophouse transactions reached only 29 in 1Q2023, which is a drop of 12.1% q-o-q and 44.2% y-o-y. Despite this, the average transacted value per shophouse came in at $9.7 million, 8.1% higher than 4Q2022.

In the rental market, the median rents of shophouses in 1Q2023 increased by 1.5% q-o-q islandwide. District 15 saw the greatest growth, rising to $5.49 psf per month. Lee Sze Teck, senior director of research at Huttons, points to “the most popular area among investors” – the Rochor planning area that encompasses Little India and Jalan Besar, accounting for 31% of transactions in 1Q2023.

The total transaction value for shophouses in 1Q2023 tallied $281.8 million, a drop of 5.7% q-o-q. This decrease was due to slow start after the Lunar New Year festivities when only five shophouse transactions were recorded in January. It was followed by nine and 15 transactions in February and March respectively.

The market saw two major shophouse transactions during the quarter. The sale of six freehold shophouses on Serangoon Road for $62.5 million and the sale of a 999-year shophouse at Boat Quay for $37 million helped drive up the average transacted value per shophouse. The Serangoon Road shophouses were purchased by the Singapore Maritime Officers’ Union, while the Boat Quay shophouse was bought by Tai Tak Estates, the holding firm of the family of late banking tycoon Ho Sim Guan.

CapitaLand J’Den Condo Development to launch J’Den Condo in Singapore’s Jurong Lake District in 2023, with price tag of S$2,000 – S$2,100 psf for residential units and 375,000 sq m GFA for office, retail and residential.

Going forward, Lee predicts the value of shophouses to continue rising due to its limited supply, making them a favourable choice for ultra-high-net-worth individuals and family offices. The recent cooling measures announced on April 27 can potentially divert some demand towards the shophouse market as well. Therefore, demand is expected to strengthen and prices to trend upwards in 2023, Lee concludes.