A portfolio of three conservation shophouses in Tanjong Pagar has hit the market, with guide prices between $11.75 million and $22.5 million. In total, the entire portfolio has a guide price of $51 million.
CBRE has been appointed as the exclusive marketing agent for the three properties, which are located in District 2 along Keong Saik Road, Craig Road and Tanjong Pagar Road.
"Conservation shophouses in Districts 1 and 2 are among the most sought-after commercial assets in Singapore’s CBD," says Clemence Lee, Executive Director of Capital Markets, Singapore at CBRE.
The properties benefit from the area's centrality and catchment of retail and commercial consumers. According to Lee, the area is a first choice for new-to-market F&B and retail concepts entering Singapore.
Meanwhile, its proximity to the Central Business District (CBD) means that it can capitalise on the large catchment of professionals working there. This part of Tanjong Pagar is also served by Outram Park MRT Interchange on the East-West (EWL) and North-East (NEL) Lines, Maxwell MRT station on the Thomson-East Coast Line (TEL), and Tanjong Pagar MRT station on the EWL.
The portfolio of three shophouses can be purchased individually or collectively for $51 million, says CBRE. Lee adds that available opportunities to acquire well-positioned District 2 conservation shophouses are already rare, let alone the chance to acquire three in a single offering.
"With the flexibility to acquire the shophouses individually or as a portfolio, we expect the offering to draw strong interest from a broad spectrum of investors, from corporates and family offices to high-net-worth individuals," he says.
A Rare Portfolio Of Conservation Properties
The most expensive property in the portfolio is a shophouse on 18 Keong Saik, which sits behind the corner lot between Jiak Chuan Road and Keong Saik Road, and is on sale at a guide price of $22.5 million.
The freehold property sits on a 1,271 sq ft plot, and the three-storey property has a total built-up area of about 3,860 sq ft that includes a mezzanine.
Based on publicly listed resale transactions, there have been two Keong Saik Road shophouses sold on the market in the last 12 months. The most recent was the shophouse at 3 Keong Saik Road that fetched $22 million after it was sold in May.
Meanwhile, the next property in the portfolio is a 99-year leasehold shophouse located at 46 Craig Road, in the row of shophouses in front of Pinnacle@Duxton.
It is a two-storey shophouse with an attic and has a total floor area of 3,916 sq ft. It is listed at a guide price of $11.75 million.
The final property in the portfolio is a 99-year leasehold shophouse at 65 Tanjong Pagar Road. This property is closer to the Duxton Hill side of Tanjong Pagar.
The three-storey shophouse, which includes a mezzanine, has a floor area of 4,400 sq ft. It is listed at a guide price of $14.5 million.
According to CBRE, the shophouses for sale are currently occupied by a diverse mix of established long-term F&B tenants, retail brands, and office tenants. This rental stability offers the new owner a stable portfolio of investment assets that can generate immediate rental income.
Chinatown's latest revitalisation
The three shophouses are also in the vicinity of Chinatown, which is on track to see key revitalisation efforts to refresh the historic precinct's appeal.
The area is already a popular tourist hotspot, with landmarks like Buddha Tooth Relic Temple, Sri Mariamman Temple and the Chinatown Heritage Centre.
The shophouse urbanscape there is also a tourism attraction in its own right, with its storefronts shifting from tourism and lifestyle offerings during the day to dining and nightlife in the evening.
Chinatown is undergoing a fresh wave of rejuvenation, according to CBRE, with a pipeline of new hotels and homes which add to its established character and heritage appeal.
Lee cited recent openings in the area, including Mondrian Singapore Duxton in 2023, a 302-room lifestyle hotel set among the shophouses of Duxton Hill, and lyf Chinatown, a 90-unit co-living property housed within conserved shophouses on Mosque Street, which opened in 2026.
The next few years will also see openings such as the Avani Singapore in 2027, a 200-key lifestyle hotel on Peck Seah Street, and TMW Maxwell in 2028, a 20-storey mixed-use development comprising 324 residences and a commercial podium.
"Together, these projects are expected to expand the area's residential, hospitality and office user base, supporting activity in the neighbourhood and demand for surrounding F&B and retail offerings," Lee said.
Capital Appreciation First, Yields Second
Lee said that conservation shophouse properties in Singapore offer investors some of the best real estate investment assets on the market that have a proven track record of generating long-term capital gains.
The most desirable shophouse properties tend to be freehold or 999-year leasehold properties that are often held for 10 to 20 years, or across multiple generations. On the other hand, most 99-year leasehold shophouses are typically sold before they turn 60 years old.
Conservation shophouse yields in Singapore are especially low due to their high prices, and have historically reaped an average yield of around 2% to 3%. This is relatively low compared to the 3.7% yield that some prime office assets can generate, as well as the 4.8% yields for a handful of prime retail properties.
0 Comments