Despite a robust economic performance in Singapore during Q4 2025, the commercial shophouse market experienced a slowdown, according to PropNex Research’s latest report. The quarter saw 22 shophouse transactions, marking a 21.4% decline from the previous quarter’s 28 deals. Year-on-year, sales dropped by 12% from 25 transactions in Q4 2024. The total value of these transactions amounted to $158.3m, a 27.6% decrease from Q3 2025.
District 8, encompassing Little India, emerged as the top performer in Q4 2025, with seven deals totalling $46.3m. For the entire year, District 8 recorded 24 transactions worth $183m, representing over a quarter of the year’s total sales value. The report highlighted that more than half of the shophouse deals in Q4 2025 were priced above $5m.
Leasing activity also saw a downturn, with 775 rental contracts signed in Q4 2025, a 5.5% decrease from the previous quarter. The value of these contracts was $8.25 million, down 4.1% quarter-on-quarter. The median monthly rental rate was $6.50 per square foot, a slight decrease from the peak in Q2 2024.
Looking ahead, PropNex anticipates potential growth in the shophouse sector in 2026, driven by Singapore’s appeal as a safe haven and a favourable economic outlook. However, challenges such as muted rental growth and geopolitical uncertainties may pose risks.
