Quarterly sales of shophouses have plummeted to their lowest level since the third quarter of 1998, according to Huttons’ latest report. The decline is attributed to investors becoming more selective due to uncertain geopolitical and economic conditions. In the first quarter of 2026, only 13 shophouses were sold, marking a 40.9% decrease from the previous quarter and a 35% drop compared to the same period last year.
The total value of shophouses sold in Q1 2026 fell by 44.2% to $88.4m from $119.2m in Q4 2025. Year-on-year, this represents a 25.8% decrease. Notably, more than 60% of the shophouses sold were priced under $5m, the highest percentage since the second quarter of 2020, when the COVID-19 pandemic first impacted market sentiments.
The largest transaction in Q1 2026 involved three adjoining units on East Coast Road, with estimated gains of $7.5m. Districts 8 and 15 were particularly popular, accounting for nearly half of the total transaction volume. Additionally, 84.6% of the shophouses sold were on land with a 999-year or freehold tenure.
Despite steady interest in shophouses since the start of the year, the ongoing conflict in the Middle East is expected to dampen market sentiment in the short term. However, Huttons anticipates that transactions will increase once the geopolitical situation stabilises. Property owners are currently maintaining high asking prices due to market scarcity, whilst some investors are waiting for high-value opportunities.
