Shophouse sales rebound in Q3 as investor interest returns with lower financing costs
PropNex expects investment demand to remain resilient, supported by Singapore’s safe-haven appeal
[SINGAPORE] Activity in the shophouse market rebounded in the third quarter of 2025, with both the number and value of recorded deals rising amid a lower interest-rate environment, a PropNex report showed.
Shophouse sales in Singapore rose to 27 caveated deals in Q3, compared with 18 in the previous quarter – marking the highest quarterly sales in about two years, said PropNex in a market update on Monday (Oct 27).
The 27 deals amounted to S$210 million, up 65.3 per cent in value compared with Q2.
Year on year, sales volume rose 50 per cent from the 18 deals recorded in Q3 2024, and sales value was up by about 51.3 per cent from S$139 million.
In the first nine months of 2025, 65 shophouses worth S$456.3 million changed hands. In comparison, 62 deals valued at S$519 million were transacted in the same period last year.
Family offices, high-net-worth individuals and institutional investors continue to make up the key buyer pool for shophouses, PropNex noted.
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“Against the backdrop of an improving economic outlook and easing interest rates, (such buyers) may be re-entering the market, seeking opportunistic purchases in the shophouse segment,” it said.
“Coveted status”
Notwithstanding a quiet first half of 2025 – when the shophouse market was tepid – investors and buyers continue to show confidence in Singapore, with many on the lookout for opportunities in the shophouse scene, Knight Frank Singapore said in a recent report.
Its data showed that shophouse deals totalled S$462.9 million across 42 units in H1 2025, down from S$520.2 million across 50 units in H2 2024.
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It expects the total sales volume for the full year to come in at around S$700 million to S$800 million, lower than the S$947.8 million recorded in 2024.
“Despite the evident impasse between buyers and sellers, prices at current levels remain supported, due to the coveted status of this limited asset class, as well as the corresponding inherent potential capital appreciation and capital preservation,” it added.
In its report, PropNex said the top caveated deal in Q3 was for three adjoining freehold shophouses in Jalan Besar in the Desker Road conservation area. They were sold for S$36.5 million, or S$5,723 per square foot (psf) on a land area of 6,378 square feet (sq ft).
Another notable deal was the sale of a Club Street conservation shophouse for S$21 million, or S$3,889 psf based on the estimated gross floor area of 5,400 sq ft.
The Business Times previously reported that the three-storey corner shophouse was sold by JL Family Office – set up by ARA Asset Management co-founder John Lim – to Singapore-incorporated Asia Success Management.
PropNex noted there were several big-ticket shophouse purchases that were not caveated during the quarter, including a portfolio sale of six conservation shophouses along Stanley Street by Anpora Real Estate for over S$82 million. The buyers were said to be affiliates of Clifton Partners, a Singapore-based real estate investment firm.
Big-ticket purchases were also higher in Q3, with 59 per cent of the 27 caveated deals transacted for above S$5 million.
Rentals mixed across districts
Leasing demand was fairly stable in the period, with 816 rental contracts signed, up 2 per cent on the quarter. However, the value of rental contracts signed fell by 4 per cent to S$8.6 million, from S$8.9 million in the prior quarter.
Shophouse rentals slipped in Q3, with the monthly median rental of S$6.59 psf down 1.3 per cent on the quarter and 0.8 per cent on the year.
Rentals posted a mixed performance across districts, said PropNex. District 7 (Middle Road and Golden Mile) booked the highest rental increase of 9 per cent on the quarter. District 8 (Little India) followed with an 8.7 per cent quarter-on-quarter rise.
Meanwhile, rentals in District 14 (Geylang and Eunos) fell by 21.5 per cent on the quarter, and prime Districts 1 and 2 posted declines of 11 per cent and 4.6 per cent, respectively.
PropNex expects investment demand for shophouses to remain resilient, supported by the safe-haven appeal of Singapore and scarce supply of the heritage properties. It expects shophouse values and rental demand to hold steady amid a positive economic growth outlook.
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