Shophouses Are Back – What’s Driving the Momentum?

by Gilad | Dec 3, 2025

On the leasing side, the number of tenancies inched up, even as median rents slipped slightly to around $6.59 psf/month. Some districts saw sharper quarterly drops, others posted gains, but islandwide, this looks more like a gentle re-pricing than a structural shift.

For many buyers at today’s prices, yield is not the main objective anyway. Shophouses are being treated as a capital-preservation and legacy asset: limited supply, strong heritage value, and a stable, well-regulated market.

Shophouses remain a high-conviction niche:
· Supply is effectively capped.
· Global liquidity is still looking for “safe but interesting” places to park capital.
· Singapore’s positioning as a wealth hub isn’t reversing anytime soon.

That being said, for investors, this is not a space to “take a punt” – it is one to approach with clear objectives, realistic rental assumptions, and a longer-term horizon.

If you’re considering a move into shophouses – whether for your business, your portfolio, or both – the data is telling a simple story: the window is still open, but you’re not the only one standing at it.

Please do contact me if you’d like to know more.

Image Credit: Photo of Keong Saik Road, Singapore by Rigel on Unsplash

Commercial shophouses in Singapore have always been attractive to investors, particularly foreign investors. Unlike residential property, commercial shophouses incur neither ABSD on purchase nor SSD on exit, with no minimum holding period. But if you thought the shophouse story had peaked, 3Q 2025 says otherwise as we detail in our latest report.

Lower interest rates and a strong equities backdrop pushed more serious money back into this tiny corner of the market – and it’s not just nostalgic buyers chasing pretty facades anymore.

In just one quarter, an estimated 28 shophouses changed hands, up from 20 the previous quarter and 18 a year ago. Transaction value jumped to about $292.5m, while the first nine months of 2025 were already running ahead of 2024 in both volume and value.

Behind the headline numbers: funds, family offices and institutional-style buyers are driving the larger deals, while ultra-high-net-worth individuals are quietly picking up assets in the sub-$10m range – particularly in Districts 8 and 15.