The latest report from PropNex Research reveals that Singapore’s shophouse market experienced a significant slowdown in Q1 2026, with sales transactions dropping to a near three-decade low. The report attributes this decline to a subdued macroeconomic environment and a mismatch in pricing expectations between buyers and sellers.
According to URA Realis data, only 13 shophouse transactions were recorded in Q1 2026, marking a 43.5% decrease from the 23 deals in Q4 2025. This represents the weakest quarterly performance since Q2 1998. Despite the downturn, the report suggests that demand remains, with buyers focusing on shophouses in prime locations with strong tenant profiles and long lease tenures.
The total sales value for Q1 2026 amounted to approximately $88m, a 48% drop from the previous quarter’s $170m. Notably, the largest transaction was a three-storey conservation shophouse on East Coast Road, sold for $16m.
Looking ahead, the shophouse market faces a challenging landscape due to ongoing geopolitical tensions and economic headwinds. However, Singapore’s reputation as a stable investment destination may continue to attract interest in well-located, investment-grade assets. PropNex highlights Singapore’s strong governance, pro-business policies, and robust regulatory frameworks as factors supporting this safe-haven appeal.
Whilst transaction activity may remain moderate, the resilience of capital values is expected to persist, providing some optimism for the market’s future.
