The Singapore shophouse market experienced a slowdown in the first half of 2025, with only 42 transactions recorded, totalling S$462.9 million. This marks a decline from the 50 transactions and S$520.2 million in sales value seen in the second half of 2024. Despite the reduced activity, the average unit price saw a slight increase of 0.5% to S$6,431 per square foot (psf) on land, according to Knight Frank Singapore.
The market’s subdued performance is attributed to a shift in investor interest towards living sector assets, as the food and beverage (F&B) sector faces challenges. Mary Sai, Executive Director of Capital Markets at Knight Frank Singapore, noted, “With the F&B sector facing challenges in recent times, living sector assets in shophouses are growing more attractive to investors.”
Freehold shophouses accounted for 37 of the 42 transactions, with a total sales value of S$358.4 million, down 25.5% from H2 2024. The average unit price for these properties decreased by 4.1% to S$6,217 psf on land. In contrast, leasehold shophouses saw a significant increase in sales value, rising 165.3% to S$104.6 million, despite one fewer transaction.
Shophouse hotels played a key role in supporting market activity, with notable sales including 21 Carpenter for S$100 million and Duxton Reserve for S$80 million. The market outlook remains cautious, with economic uncertainties and conservative GDP growth projections influencing investor behaviour. Total sales volume for 2025 is expected to be between S$700 million and S$800 million, lower than the S$947.8 million recorded in 2024.
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