Value of shophouse deals rises 8% in 2015

Singapore

THE value of shophouse transactions last year reached S$655.6 million, up 8 per cent from S$606.2 million in the previous year. However the number of transactions eased in 2015; a total of 103 caveats were lodged last year - down from 112 in 2014, suggesting bigger-ticket shophouses changed hands last year.

Some market watchers told The Business Times that there has been heightened interest for this property asset class from ultra high net worth investors and family funds, some prepared to accept low entry yields of just 2-3 per cent (on a gross basis) with an eye to capital appreciation in the medium to long term.

Sammi Lim, associate director, investment properties, at CBRE, expects the value and volume of shophouse deals to remain stable this year, similar to 2014 and 2015 levels - chiefly because investors are in it for the long haul. "Buyers will expect higher entry yields as they remain prudent in t…