A Rare Pair Of Conserved Shophouses In Chinatown Just Hit The Market For $32.5M

A pair of adjoining conserved shophouses along the iconic Pagoda Street in Chinatown have been launched for sale at a guide price of $32.5 million. Located at 54 and 56 Pagoda Street in the heart of Chinatown, the shophouses are within the Kreta Ayer Conservation Area.

The 99-year leasehold shophouses sit on separate land titles but will be sold together as a pair. Collectively, they occupy a land area of about 3,011 sq ft and have a total built-up area of approximately 9,162 sq ft.

The guide price translates to about $3,547 psf on floor area. The properties will be sold in an Expression of Interest (EOI) exercise and are marketed by Cushman & Wakefield.

A rare pair of shophouses on Chinatown’s busiest street

Pagoda Street is usually regarded as the commercial spine of Chinatown, connecting Chinatown MRT station on the North-East Line to the pedestrianised heritage streets including Trengganu Street and Smith Street.

The area also benefits from its location within a well-established tourism belt. Chinatown remains one of Singapore’s most visited cultural districts alongside a network of heritage streets lined with retail, dining, and cultural attractions. This steady stream of visitors contributes to consistent footfall along Pagoda Street throughout the year.

The shophouses at 54 and 56 Pagoda Street are approved for shop use on the ground floor, and the tenants have established an approved outdoor refreshment area in front of the shophouses.

The upper floors, including the mezzanine, second, and third storeys, are currently leased to office tenants. These floors feature efficient layouts, modern interiors, in-unit washrooms, and near full-height windows.

A tightly held heritage asset class

“Opportunities to acquire adjoining conserved shophouses on Pagoda Street are uncommon, particularly assets that are fully tenanted with prominent street frontage,” says Sophia Lim, director at Cushman & Wakefield.

Conserved shophouses are a niche segment within Singapore’s commercial property market. Supply is inherently limited due to conservation guidelines, and most units are held by long-term owners who rarely sell.

This scarcity has contributed to sustained investor demand, particularly for assets located in Chinatown, Boat Quay, and Tanjong Pagar. As commercial properties, the units are not subject to additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Foreigners and corporate entities are eligible to purchase.

Shaun Poh, executive director at Cushman & Wakefield, says, “Prime conserved shophouses in core city locations continue to see sustained demand, particularly assets with full occupancy and a diversified tenant mix across retail and office use.”

He adds that the combination of ground-floor retail and upper-floor office tenants also provides diversification of income streams for the potential buyer, which may help support occupancy rates and rental stability over time.

How does pricing compare?

The guide price of about $3,547 psf based on the total floor area is within the price range of recent transactions for prime shophouses in the Chinatown precinct, according to data compiled by Cushman & Wakefield.

The most recent shophouse transaction on Pagoda Street was the sale of 78 Pagoda Street, a 99-year leasehold shophouse, which fetched $12 million when it was sold last October.

Meanwhile, a freehold shophouse at 31 Pagoda Street fetched $19 million when it was sold in March 2024.

Elsewhere in the heritage precinct, individual shophouses have changed hands within comparable pricing brackets, based on caveats.

Given the prominence of the location and the rarity of adjoining conserved units along Pagoda Street, this offering is likely to draw interest from both local and foreign investors, or family offices seeking stable income assets in prime heritage districts, says Lim.