The latest report from Huttons reveals a notable increase in the value of shophouse transactions in Q2 2025, with a total of $332.9 million, marking a 179.3% rise from Q1 2025’s $119.2 million. This surge comes despite a slight decline in the overall transaction volume for the first half of 2025, which saw 41 shophouses sold—6.8% lower than the same period in 2024.
The increase in transaction value is attributed to three major deals exceeding $200 million collectively. These include the acquisition of 21 Carpenter, a 48-key boutique hotel, by Timemerchant Capital for an estimated $100 million, and the sale of Duxton Reserve hotel to Lotus One Investment for $80 million. Additionally, LHN Limited sold its stake in Coliwoo Hotel Gay World to CWL Properties for $25.8 million.
Investors are showing a preference for shophouses used for living and hospitality purposes, moving away from those used for food and beverage (F&B) due to challenging operating conditions. This shift is reflected in the fact that 85% of shophouses sold in Q2 2025 were priced up to $15 million, with Districts 8 and 15 being particularly popular.
Looking ahead, Lee Sze Teck, Senior Director, Data Analytics at Huttons, anticipates that transaction volumes and values may remain subdued in the second half of 2025. The ongoing evolution of sectoral tariffs and the closure of several F&B businesses are expected to keep investors cautious, with many likely to remain on the sidelines unless compelling assets become available.
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