A freehold conservation shophouse on Telok Ayer Street has just been listed at a guide price of $23.76 million. The commercial property will be sold in an Expression of Interest exercise managed by CBRE, the exclusive marketing agent, that closes on November 25.

Located at 171 Telok Ayer Street, the three-storey shophouse sits on a 1,390 sq ft plot and has a total floor area of 4,168 sq ft. Thus, the guide price translates to approximately $5,700 per square foot based on its total floor area.

As a commercial property, the sale is open to foreign buyers, and no Additional Buyer's Stamp Duty (ABSD) or Seller's Stamp Duty (SSD) is imposed on the transaction.

The shophouse will be sold with existing tenancies, with the ground floor space granted a rare permanent restaurant approval, while the upper floors are leased as offices.

The regular and efficient floor plates of the shophouse for sale mean that it could accommodate a wide variety of businesses.

According to CBRE, there is also the potential to enhance the property value through the conversion of the upper floors to alternative uses such as wellness or serviced apartments, subject to approvals.

It is a rare opportunity for investors hunting for a trophy asset in Singapore, especially since the shophouse enjoys a prominent street-level frontage along Telok Ayer Street, close to the junction with McCallum Street.

It is also close to several landmark office and commercial developments in the Central Business District (CBD), such as Frasers Tower, CapitaSpring, and Guoco Tower.

Recent Shophouse Sales Along Telok Ayer

According to URA caveats, the most recent shophouse sale along Telok Ayer was the sale of 176 Telok Ayer, which changed hands for $14.8 million when it was sold in January 2025.

Over at the neighbouring street, the shophouse at 30 Stanley Street transacted for $15.68 million when it was sold in March this year.

Before that, the shophouse at 182 Telok Ayer Street transacted for $16.5 million when it was sold in May 2024.

But then four transactions took place in 2021: 163 Telok Ayer Street ($16.8 million), 112 Telok Ayer Street ($8.55 million), 198 Telok Ayer Street ($17.38 million), and 114 Telok Ayer Street ($8.388 million).

According to market data from CBRE, freehold and 999-year conservation shophouses in prime Districts 1 and 2 have been transacting at prices ranging from $5,000 to $6,800 psf, with price quantums of $16 million to $22 million.

This includes the sale of the shophouse at 85 Circular Road, which fetched $16.2 million after it was sold on Aug 21 this year, and the sale of 22 Keong Saik Road, which changed hands for $16 million when it transacted in June 2026.

"Given the palatable investment quantum of under $25 million for 171 Telok Ayer Street, we expect it to draw strong interest from a wide pool of investors, including corporate investors, family offices and high net-worth individuals," says Clemence Lee, executive director of Capital Markets at CBRE.

Wealthy Owners And Investors Have Long Looked To Shophouses As Wealth Preservation Assets

Shophouses, especially those with a freehold tenure, have been viewed as a reliable investment asset and a long-term wealth preservation asset. In addition, freehold shophouses in conservation areas like Telok Ayer are viewed as trophy properties due to their inherent scarcity, benchmark prices, and prestige.

The value proposition is well-documented. Freehold shophouses, including those with conservation status, are limited in supply and sit in conservation areas less likely to see new development nearby that drastically changes the character of a neighbourhood.

They also feature some of the key attributes and characteristics that luxury brands, Michelin-starred restaurants, and boutiques are more willing to pay premium rents for.

"It is already a preferred location for new-to-market F&B concepts, speciality cafés and cocktail bars, while also linking directly to the dining clusters at Amoy Street, Club Street and Ann Siang Hill," says Lee.

Recently, family offices and affluent individuals have turned to shophouse properties as a store of wealth, especially as ABSD taxes stamp out foreign and corporate buyers from the private residential property market. Prominent international entrepreneurs like Zhang Ying, Jack Ma's wife, Leo KoGuan, and Ray Dalio hold some of these assets in Singapore.

"Freehold conservation shophouses along Telok Ayer Street are among Singapore’s most highly regarded commercial investment assets. They are tightly held by astute investors due to their scarcity and prestige, and are often swiftly acquired when opportunities arise," says Lee.

Right Place, Right Time

In Singapore, parts of the CBD are also undergoing repositioning and rejuvenation, encouraged in part by government policies aimed at turning the CBD into a more vibrant mixed-use precinct.

Under URA's Central Business District Incentive (CBDI) Scheme, introduced in 2019 and subsequently extended, older office towers in the surrounding Cecil Street, Robinson Road, Shenton Way and Tanjong Pagar precincts are being redeveloped into mixed-use developments that combine Grade A offices with residences, hotels and serviced apartments.

"As CBD rejuvenation gathers pace, occupier demand for well-located shophouse space is expected to strengthen, supporting positive rental reversions and capital appreciation over the medium to long term," says Lee.