This 100-Year-Old Singapore Shophouse Is Up For Sale At $33.4 Million — Here’s What Buyers Are Really Paying For

A freehold commercial shophouse at 42 South Bridge Road is on the market at a guide price of $33.4 million. The five-storey shophouse with attic has a total floor area of 6,430 sq ft, and the guide price translates to $5,194 psf.

The sale of the property is marketed by CBRE, the exclusive marketing agent, and the shophouse will be sold in an Expression of Interest (EOI) exercise. The sale is open to foreigners and since it is a commercial property, no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) is payable on the transaction.

The shophouse sits on a 1,612 sq ft site between Boat Quay and Clarke Quay. Nearby landmarks include The Riverwalk, Clarke Quay Central, Parkroyal Pickering Singapore, and the conservation shophouses along Boat Quay that face the Singapore River.

This part of the Upper Circular Road Conservation Area has consistently attracted a diverse range of businesses over the years, such as restaurants and bars, boutique hotels, offices, and fitness studios. The district’s vibrant tenant mix reflects its lasting commercial appeal.  

The freehold commercial shophouse for sale will be sold with existing tenancies. The property has obtained restaurant approval for the ground floor, fifth floor, and attic, which are occupied by a bar/coffeehouse and a modern East Asian bistro respectively. The third floor is leased to a private wine club, with the remaining floors used as office space.

The closest MRT station is Clarke Quay on the North-East Line, which is also linked to Clarke Quay Central shopping mall. Other stations in the vicinity include Raffles Place, Chinatown, City Hall, Telok Ayer, and Fort Canning.

Why investors still pay tens of millions for 100-year-old shophouses 

Located at the intersection of several key districts, the site benefits from the robust footfall from office workers in the Central Business District (CBD), especially around Raffles Place, as well as tourists who come to see the Singapore river.

This is a crucial factor which drives the value of commercial properties, and the property’s location between Boat Quay and Clarke Quay puts it in a particularly advantageous position, says Michael Tay, Deputy Managing Director and Head of Capital Markets at CBRE Singapore.

There are about 6,500 conservation shophouses across Singapore, which makes them a rare commodity within the commercial real estate market.

The shophouse for sale also boasts the added flexibility of F&B use, along with its regular, efficient floor plates and a well refurbished facade and interiors, says Tay. He adds that family offices and wealthy investors looking for assets that can be held long term will also consider this property for its value as a legacy asset.

The government’s recent relaxation of use restrictions is a positive development for the wider Boat Quay and South Bridge Road precinct, potentially allowing surrounding buildings to be redeveloped into hospitality and residential uses.

If this results in more commercial buildings being repositioned into new hospitality concepts, it will boost the overall footfall of visitors in this area, says Clemence Lee, Executive Director of Capital Markets at CBRE Singapore. “Over time, the anticipated uplift in activity and spending should support rental growth and drive higher capital values for well-located assets such as 42 South Bridge Road,” he says.

Recorded sales of shophouses in the area have been relatively sparse, although there is a good chance that several deals have not been lodged.

In the Boat Quay conservation area, the sale of 8 Circular Road fetched $12.28 million when it was sold in June 2024. Meanwhile, 36 Circular road changed hands for $16.8 million when it was sold in August 2022.

For investors including business owners and family offices, the appeal of a South Bridge Road shophouse is not just rental income. It is the prestige that comes with owning a piece of Singapore’s commercial history — an asset that can no longer be replicated.