$281.2M in Singapore Shophouse Deals in 2H2025 — But That Number Doesn’t Tell the Full Story

Singapore’s shophouse market recorded 36 transactions in 2H2025, with sales valued at about $281.2 million. This is a slight increase compared to the 34 deals inked in 1H2025 where the sales volume was about $235 million, according to a market report by ERA Singapore.

Overall, sales activity in the shophouse segment dropped to a 10-year low and is a sharp slowdown from the peak in 2021 when 245 shophouses worth $1.8 billion were sold.

Marcus Chu, CEO of ERA Singapore, says that elevated asset prices and increased global economic uncertainty have reduced investor appetite for shophouses in Singapore. “The subdued activity reflects a pricing standoff between buyers and sellers, rather than weak demand. Landed shophouses remain highly sought after, but price expectations continue to be the main obstacle to closing deals,” he says.

He adds that some transactions may go unreported as they were completed through special purpose vehicles, share sales, or transacted without a lodged caveat.

Most expensive shophouse deals in 2H2025

According to caveats, the most expensive shophouse transaction in 2H2025 was the sale of 203,205,207 Jalan Besar, a property in the Desker Road Conservation Area in District 8 . The freehold shophouse sits on a 6,378 sq ft site and fetched $36.5 million ($5,723 psf) when it was sold on Sept 24.

The runner-up is the sale of 65 Club Street, a 999-year leasehold shophouse in the Telok Ayer Conservation Area in District 1. The shophouse, which sits on a 2,083 sq ft site, changed hands for $21 million ($10,082 psf) and the sale was also lodged on Sept 24.

All the top five shophouse sales were freehold or 999-year leasehold properties, and more than 86.1% of the shophouse deals closed in 2H2025 were in this category. However, average prices for freehold shophouses dipped 18% in 2H2025 compared to $3,989 psf recorded in 1H2025.

Elevated freehold prices have also established a price floor for leasehold assets, with 99-year leasehold shophouses seeing a 7.1% increase in the average price to hit $4,758 psf in 2H2025 compared to the first six months of this year.

A noteworthy 99-year leasehold shophouse that changed hands in 2H2025 was the sale of 78 Pagoda Street which fetched $12 million ($10,478 psf).

Research by ERA indicates that over the last decade, about 66.7% of all shophouse transactions in Singapore were valued between $5 to $10 million, and this underscores this as the market’s key pricing band. Transactions under $5 million were mainly 99-year leasehold properties in non-central regions or smaller units of less than 2,000 sq ft.

Popularity of Central Region and conservation status shophouses

Thirty of the 36 shophouse deals in 2H2025 were in the Central Region. This reflects ongoing demand for centrally located assets that offer higher rental yields from uses such as F&B, fitness, and co-living, says Chu.

There were nine transactions each in District 8 (Little India) and District 15 (East Coast/Marine Parade).

Conservation shophouses remain tightly held by owners, supported by the scarcity of such properties in Singapore. Only about 6,500 shophouse have conservation status. For example, two shophouses at 69,71 Kampong Bahru Road were sold for $14.88 million ($6,350 psf) on 19 Sept. The freehold shophouses are in the Blair Plain Conservation Area in District 3.

The lure of trophy assets

Looking ahead, family offices and institutional investors are likely to remain the key buyer groups for shophouses. Most of these buyers prefer assets in the Central Region with freehold or 999-year leasehold tenures.

Likewise, shophouses suitable for residential or co-living conversion will continue to attract the attention of operators looking to expand their portfolios in Singapore.

The absence of additional buyer stamp duties on shophouse transactions, coupled with the property’s rarity and versatility, means that these assets will be on the radar for most high net-wealth local and international buyers.

“Despite ongoing global uncertainties, Singapore remains a stable investment hub, supported by political stability, a strong Singapore dollar, a competitive tax regime, and its capacity to attract long-term capital. These factors continue to drive demand for landed shophouses as assets for capital appreciation and wealth preservation,” says Chu.

ERA forecasts that the shophouse market is poised for recovery in 2026 with 70 to 80 deals amounting to about $550 million to $650 million potentially on the table, as portfolio rebalancing and asset recycling drive big-ticket transactions.