The latest report from PropNex Research reveals a subdued commercial shophouse market in Q2 2025, with transactions dropping by 10% compared to Q1 2025. The decline is attributed to a mismatch in price expectations between buyers and sellers, compounded by global economic uncertainties following the US’s introduction of sweeping trade tariffs in April.
In Q2 2025, 18 shophouse transactions were recorded, a decrease from 20 in the previous quarter and 21 in the same period last year. Despite the drop in volume, the total value of these transactions rose by 6.6% quarter-on-quarter to $127 million, although this figure remains 35% lower than the $195 million recorded in Q2 2024.
Leasing demand also saw a decline, with 800 rental contracts signed, down 4.9% from Q1 2025. However, shophouse rentals showed signs of recovery, with a 3.1% increase in the monthly median rental to $6.68 per square foot.
The report highlights that prolonged uncertainty and volatility may continue to affect investment appetite, particularly for high-value purchases. However, shophouses, with their limited supply and heritage value, may attract investors seeking stability during turbulent times. The recent revisions to Singapore’s Seller’s Stamp Duty could also shift investor focus from residential to commercial properties, potentially benefiting the shophouse market.
Looking ahead, PropNex suggests that whilst leasing demand may remain stable, the evolving tariff landscape could impact future market dynamics.
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