PropNex Research has revealed a significant rebound in Singapore’s shophouse market during the third quarter of 2025, with transactions climbing by 50% quarter-on-quarter. The surge is attributed to improved buyer and seller sentiment, bolstered by a stable economy, lower interest rates, and a positive tourism outlook.
In Q3 2025, 27 shophouse transactions were recorded, marking the highest quarterly sales in two years and amounting to $210m. This represents a 65.3% increase in value compared to the previous quarter. District 15, encompassing Katong and Joo Chiat, led the sales with eight deals valued at $47.9m.
Leasing demand remained stable, with 816 rental contracts signed, a slight 2% increase from Q2 2025. However, the total value of these contracts fell by nearly 4% to $8.58m. Median rentals decreased by 1.3% to $6.59 per square foot per month.
PropNex anticipates continued investment interest in shophouses, driven by their safe-haven appeal and heritage value. However, macroeconomic uncertainties and US-China trade tensions could impact business outlooks and yields. Despite these challenges, shophouses are expected to remain attractive to investors seeking defensive assets.
