COMMERCIAL PROPERTY REPORT
SHOPHOUSE
2025
KEY HIGHLIGHTS
$210 mil
Value of shophouse sales transactions in Q3 2025
$8.58 mil
Value of shophouse leasing transactions in Q3 2025
$6.59 psf
Overall shophouse median rental 20 ($PSF per month) in Q3 2025
Overview
Sales momentum in the commercial shophouse market rebounded in Q3 2025, supported by a recovery in sentiment amongst both buyers and sellers. Buying interest for shophouse has picked up, with the moderation in interest rates, ongoing strength of the Singapore economy, and positive tourism sector outlook. According to advance estimates from the Ministry of Trade and Industry (MTI), Singapore’s economy grew by 1.3% quarter-on-quarter (QOQ) in Q3 2025, following a 1.5% QOQ expansion in Q2 2025. Optimism in the growth outlook and prospects of a de-escalation in US-China trade tensions could help to support the shophouse sector.
Sales Transactions
- Based on caveats lodged, there were 27 shophouse transactions in Q3 2025, up by 50.0% QOQ from the 18 deals in Q2 2025. Year-on-year, the sales volume in Q3 2025 similarly rose by 50.0% from the 18 deals in Q3 2024. As the caveats for some transactions may not have been lodged, the actual sales figure for Q3 may be higher.
- The 27 shophouse deals in Q3 2025 – the highest quarterly sales in about two years – amounted to $210 million, marking a 65.3% increase in value compared with the previous quarter. Sales value was up by about 51.3% YOY from $139 million in Q3 2024.
- In the first nine months of 2025, 65 shophouse deals worth $456.3 million have been sold, compared with the 62 deals valued at $519 million that were transacted in the same period last year (9M 2024). Based on market observations, the key buyer pool for shophouses continues to comprise family offices, high-net worth individuals and institutional investors.
Top Shophouse Transactions
- Of the 27 shophouse transactions in Q3 2025, District 15 (Katong, Joo Chiat) topped sales, with eight deals valued at $47.9 million.
- There were several big-ticket shophouse acquisitions during the quarter that were not caveated. Among them, a portfolio sale of six conservation shophouses along Stanley Street by Anpora Real Estate for over $82 million. According to media reports, the buyers of these shophouses are affiliates of Clifton Partners, a Singapore-based real estate investment firm. The transactions were completed in July this year.
- According to URA Realis data, the top caveated transaction in Q3 2025 was the sale of three adjoining freehold shophouses in Jalan Besar in the Desker Road Conservation Area for $36.5 million in September 2025. The sale price reflects a unit price on land area of $5,723 psf, based on a land area of 6,378 sq ft.
- Another notable deal during the quarter was the sale of a Club Street conservation shophouse for $21 million. The purchase price reflects a unit price of $3,889 psf based on the estimated gross floor area of 5,400 sq ft. According to media reports, the 3- storey corner shophouse was sold by JL Family Office to Singapore-incorporated Asia Success Management.
- In general, there were more big-ticket shophouse purchases during the quarter. Based on caveats lodged, of the 27 shophouse deals in Q3 2025, more than half (or 59%) were priced at above $5 million, while the remaining deals (41%) were transacted at below $5 million.
Shophouse Transaction Volume and Total Value (in $Mils)
Source: PropNex Research, URA Realis
Table 1: Price Range of Shophouses Sold by Quarter
Source: PropNex Research, URA Realis
Shophouse Leasing
- Leasing demand for shophouse space was fairly stable during the quarter, with 816 rental contracts signed in Q3 – a slight uptick of 2% QOQ from 801 contracts in Q2 2025. The value of rental contracts signed in Q3 2025 was down by nearly 4% to $8.58 million compared with $8.9 million in Q2 2025.
- In the first nine months of 2025, about 2,458 rental contracts worth $26.6 million have been signed – slowing from the corresponding period last year (9M 2024) where 2,695 leasing contracts worth $30.7 million were inked.
- Shophouse rentals slipped in Q3 2025, with a monthly median rental of $6.59 psf, according to URA Realis data. On a quarterly basis, rents were down by 1.3% in Q3 2025. On a yearly basis, shophouse rents were down by 0.8%.
- Across selected districts, shophouse rentals saw mixed performance in Q3 2025. District 7 (Middle Road, Golden Mile) booked the highest rental increase of 9% QOQ, followed by District 8 (Little India) with an 8.7% QOQ increase. Conversely, rentals in District 14 (Geylang, Eunos) posted the steepest decline of 21.5% QOQ. Rentals in the prime districts of D1 and D2 also posted quarterly declines of 11% and 4.6%, respectively in Q3 2025.
Shophouse Market Outlook
Against the backdrop of an improving economic outlook and easing interest rates, family offices, high-net-worth individuals, and institutional investors may be re-entering the market, seeking opportunistic purchases in the shophouse segment. Investment demand for shophouses is expected to remain resilient, supported by safe-haven appeal of Singapore. The scarcity and heritage value of shophouses also make them ideal for investors seeking more defensive assets that are perceived to better retain value over time.
In July 2025, the Singapore government announced revisions to the Seller’s Stamp Duty (SSD) for private residential properties. This change may prompt some investors to shift their focus towards the commercial property market. Notably, commercial properties, including shophouses are not subjected to both the SSD and the additional buyer’s stamp duty (ABSD).
In September 2025, the US Federal Reserve cut interest rates for the first time in 2025, and it was also the fourth cut following 11 rate hikes since March 2022. Due to downside risks to growth and a softening labor market in the US, some analysts anticipate further rate cuts by the US Fed in the last quarter of 2025.
Amid a benign interest rate environment, there may be growing investment interest in shophouses, particularly among investors looking to preserve and grow their wealth through alternative assets.
Shophouse Leasing Transactions and Total Contract Value (in $Mil)
Source: PropNex Research, URA Realis
Shophouse Median Monthly Rentals ($PSF) by Quarter
Source: PropNex Research, URA Realis
Table 2: Median Rentals ($PSF per month) of Selected Districts
Source: PropNex Research, URA Realis
Research
Wong Siew Ying
Head of Research and Content
Jean Choo
Senior Research Analyst
Leeann Chan
Research Analyst
Corporate Communications & Business Development
Fazilla Nordin
Assistant Director
Clarissa Yeo
Manager
PropNex Realty (A subsidiary of PropNex Limited) 480 Lorong 6 Toa Payoh #10-01 HDB Hub East Wing Singapore 310480 Main : (65) 6820 8000
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