The latest report from PropNex reveals that Singapore’s shophouse market experienced a slowdown in Q1 2025, with only 19 transactions totalling S$100m—a 43% decrease from the previous quarter.
This decline is attributed to a mismatch in price expectations between buyers and sellers, coupled with market uncertainties stemming from a potential trade war and slower economic growth. The US’s recent tariffs on Canada, Mexico, and China have further complicated the global economic landscape, impacting investment interest.
Despite the downturn, certain districts showed resilience. District 8 (Little India) and District 19 (Serangoon Garden, Hougang, Punggol) led the sales with five deals each, valued at S$24m and S$19m, respectively. The top transaction was a shophouse in the Telok Ayer Conservation Area, sold for S$14.8m in January.
Leasing activity remained robust, with 836 rental contracts worth S$9.1m signed, although this marked a slight decline from the previous quarter. The median rental rate increased marginally by 0.3% to S$6.47 per square foot per month.
Looking ahead, PropNex suggests that shophouse hospitality assets may see renewed interest due to Singapore’s thriving tourism sector. However, the looming threat of a trade war and high overhead costs could pressure retailers and F&B operators, potentially affecting their ability to absorb higher rents. PropNex maintains that Singapore remains an attractive real estate investment destination, citing its stable political environment and strong infrastructure.
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