Yields falling, but shophouses still attractive: Colliers

Singapore

EVEN though yields of shophouses are falling as their rental growth lags the rapid increase in their capital values, investment firms continue to like them, especially when they are available in a contiguous row and allow for master lease arrangements.

A Colliers White Paper released on Tuesday noted that the median rent of shophouses had increased 36 per cent from below S$4 per sq ft (psf) per month before 2012 to a record high of S$5.42 psf in Q4 2014.