SHOPHOUSE REPORT Q2 2025 PDF Free Download
1 / 3/3
100%
SHOPHOUSE
REPORT
2025
AT A GLANCE
SHOPHOUSE
SALES
SHOPHOUSE
RENTALS
TXN VOLUME
18 DEALS TXN VALUE
$127 MIL
TXN VOLUME
800 DEALS TXN VALUE
$8.89 MIL
Dominic Lee
CEA No. : R010497G
KEY HIGHLIGHTS
Value of shophouse sales
transactions in Q2 2025
Overview
Commercial shophouse market activity was relatively subdued
in Q2 2025, as a mismatch in price expectations between buyers
and sellers continue to crimp transactions. In April, the US
introduced sweeping trade tariffs, raising concerns about a
potential slowdown in the global economy. Additionally,
escalating conflict in the Middle East further intensified
geopolitical tensions, adding to market uncertainties. Despite
these challenges, the Singapore economy demonstrated
resilience and expanded by 1.4% quarter-on-quarter (QOQ) in Q2
2025, reversing the 0.5% QOQ decline in Q1 2025, according to
advance estimates from the Ministry of Trade and Industry (MTI).
Sales Transactions
•Based on caveats lodged, there were 18 shophouse transactions in
Q2 2025, falling 10.0% QOQ from the 20 deals in Q1 2025. Year-on-
year, the sales volume in Q2 2025 declined by 14.3% from the 21
deals in Q2 2024. As the caveats for some transactions may not
have been lodged, the actual sales figure for Q2 may be higher.
•The 18 shophouse deals in Q2 2025 amounted to $127 million, a 6.6%
increase in value compared with the previous quarter. Sales value
was still down by about 35% YOY from $195 million in Q2 2024.
•In the first half of 2025, 38 shophouse deals worth $246.3 million
have been sold. Sales activity of shophouses have been on a
downward trend since mid-2022. In terms of sales value, this is the
lowest value of shophouse deals recorded on a half-yearly basis
since 1H 2009 when $192.7 million worth of shophouses were sold
then.
Top Shophouse Transactions
•Of the 18 shophouse transactions in Q2 2025, District 8 (Little India,
Jalan Besar) topped sales, with seven deals valued at $53.1 million.
•There were several big-ticket shophouse acquisitions during the
quarter that were not caveated. Among them, the acquisition of
the 48-key boutique hotel 21 Carpenter, with a purchase price of
about $100 million - equating to a near-record price of $2.08
million per key. The Duxton Reserve Singapore, Autograph
Collection, a 49-key boutique hotel, is also said to have been sold
in early-April at $80 million.
•Separately, the 138-room Hotel 1900 in Mosque Street, near
Chinatown has been put up for sale with a guide price of about
$170 million. Another 42-key boutique hotel The Inn, along Temple
Street has been put on the market for about $90 million.
•Notwithstanding near-term uncertainties, shophouse hospitality
assets remain attractive as Singapore’s tourism sector is poised
for another year of growth in 2025.
•According to the URA Realis caveats data, the top caveated
transaction in Q2 2025 was the sale of a shophouse in the Bukit
Pasoh Conservation Area for $12 million in April 2025. The sale price
for the freehold shophouse amounts to $8,983 psf based on a land
area of 1,336 sq ft.
•In general, there were more big-ticket shophouse purchases
during the quarter. Based on caveats lodged, of the 18 shophouse
deals in Q2 2025, more than half (or 78%) of them were priced at
above $5 million, while the remaining deals (22%) were priced at
below $5 million.
Value of shophouse leasing
transactions in Q2 2025 Overall shophouse median rental
($PSF per month) in Q2 2025
$127 mil $8.89 mil $6.68 psf
Source: PropNex Research, URA Realis
COMMERCIAL PROPERTY REPORT
SHOPHOUSE MARKET
2025
Price Range Q2
2024 Q3
2024 Q4
2024 Q1
2025 Q2
2025
Under $2.5
million 1 0 1 1 1
$2.5 million to
< $5 million 9 4 9 10 3
$5 million to
< $10 million 710 8 6 12
Above
$10 million 4 4 6 3 2
Total
Transactions 21 18 24 20 18
Table 1: Price Range of Shophouses Sold by Quarter
Source: PropNex Research, URA Realis
32 23 33 57 57 73 63 60 52 67 36 36 32 47 36 16 23 21 18 25 20 18
$152
$117
$181
$463
$365
$531
$413
$606
$467
$495
$343
$321
$297
$432
$279
$111
$185
$195
$139
$180
$119$127
$0
$100
$200
$300
$400
$500
$600
$700
0
10
20
30
40
50
60
70
80
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 1
Qtr 2
2020 2021 2022 2023 2024 2025
Transaction Value (in $Mil)
Transaction Volume
Shophouse Transaction Volume and Total Value (in $Mil)
Txn Vol Txn Value (in $Mil)
Wong Siew Ying
Head of Research and
Content
Jean Choo
Senior Research Analyst
Leeann Chan
Research Analyst
Fazilla Nordin
Assistant Director
Clarissa Yeo
Manager
Victoria Koh
Executive
Corporate Communications & Business Development
Research PropNex Realty
(A subsidiary of PropNex Limited) 480 Lorong 6 Toa Payoh #10-01 HDB Hub
East Wing Singapore 310480 Main : (65) 6820 8000
Disclaimer:
While every reasonable care is taken to ensure the accuracy of information printed or presented here,
no responsibility can be accepted for any loss or inconvenience caused by any error or omission. The
ideas, suggestions, general principles, examples and other information presented here are for
reference and educational purposes only.
This information contained herein is not in any way intended to provide investment, regulatory or
legal advice or recommendations to buy, sell or lease properties or any form of property investment.
PropNex shall have no liability for any loss or expense whatsoever, relating to any decisions made by
the audience.
All copyrights reserved.
Source: PropNex Research, URA Realis
2025
Shophouse Leasing
•Leasing demand for shophouse space moderated further
during the quarter. With 800 rental contracts signed in Q2
2025, this represented a decline of 4.9% QOQ from 841
contracts in Q1 2025. Similarly, the value of rental contracts
signed in Q2 2025 was also lower at $8.9 million compared
with $9.1 million in Q1 2025.
•In the first half of 2025, about 1,641 rental contracts worth $18
million have been signed –slowing from the previous half
(2H 2024) where 1,804 leasing contracts worth $20.5 million
were signed.
•Shophouse rentals continued to recover in Q2 2025, with a
monthly median rental of $6.68 psf, according to caveats
lodged. On a quarterly basis, rents were up by 3.1% in Q2
2025. However, rents are down by 2.2% on a yearly basis.
•Across selected districts, shophouse rentals saw mixed
performance in Q2 2025. District 14 (Geylang, Eunos) booked
the highest rental increase of 28.9% QOQ, followed by District
1 (Raffles Place, Cecil, Marina, People's Park) with a 9.1% QOQ
increase. Conversely, shophouse rentals in District 15
(Katong, Joo Chiat) posted the steepest decline of 9.5% QOQ.
Shophouse Market Outlook
While the full impact of the sweeping US trade tariffs was cushioned
partially by the temporary 90-day tariff truce, effective till 2 July
2025, the heightened level of uncertainties has weighed on market
sentiment. As property investment demand is highly sentiment
driven, prolonged periods of uncertainty and volatility will likely
affect investment appetite, particularly for big-ticket purchases. It is
possible that shophouse sales may remain subdued in the near-
term, with buyers and sellers taking a wait-and-see approach.
That said, there may be a silver lining for the shophouse market.
During times of volatility, investors often gravitate toward more
defensive commercial assets, such as shophouses, which are
limited in supply. The scarcity along with their heritage value and
prime locations, could help to preserve their long-term value and
provide stability during turbulent times.
PropNex believes Singapore remains a highly attractive destination
for real estate investment, due to its stable political climate, strong
currency, and excellent connectivity and infrastructure. Additionally,
the country’s robust fiscal position and the government's proactive
approach to supporting the economy, further bolster investors’
confidence.
In July 2025, the Singapore government announced revisions to the
Seller’s Stamp Duty (SSD) for private residential properties. The
holding period was extended from 3 to 4 years, and the SSD rates
were raised. This may potentially have a positive impact on the
commercial property market, as some investors could shift their
focus from residential properties to the commercial real estate
segment. Commercial properties, including shophouses are not
subject to the SSD nor the additional buyer’s stamp duty (ABSD). To
this end, there may be an uptick in investment interest in
shophouses, among investors seeking to park their wealth in
alternative assets.
Meanwhile, leasing demand for shophouses is expected to remain
relatively stable in the near-term, as occupiers monitor the evolving
tariff landscape and its potential impact on the global economy.
Owing to market uncertainties, some occupiers may reassess their
expansion or relocation plans. There are downside risks to
shophouse rentals and occupancy rate, especially if there is any re-
escalation of trade tensions.
COMMERCIAL PROPERTY REPORT
SHOPHOUSE MARKET
838 901 914 892 898 877 910 904 922 908 931 907 864 898 933 871 841 800
$7.32
$7.62
$8.32
$8.17
$8.21$8.31
$8.92
$8.90
$9.86
$9.25
$9.30 $9.55
$9.66
$10.30
$10.73
$9.77
$9.11$8.89
$6.00
$7.00
$8.00
$9.00
$10.00
$11.00
$12.00
700
750
800
850
900
950
2021Q1
2021Q2
2021Q3
2021Q4
2022Q1
2022Q2
2022Q3
2022Q4
2023Q1
2023Q2
2023Q3
2023Q4
2024Q1
2024Q2
2024Q3
2024Q4
2025Q1
2025Q2
Value of rental contracts (in $Mil)
Volume of rental contracts
Shophouse Leasing Transactions and Total Contract Value (in $Mil)
Number of Rental Contracts Total Value of Rental Contracts (in $Mil)
Source: PropNex Research, URA Realis
Source: PropNex Research, URA Realis
$5.37 $5.50 $5.63
$5.89 $5.99
$6.21
$5.98
$6.36 $6.43
$6.83
$6.64
$6.45$6.48
$6.68
$5.00
$5.25
$5.50
$5.75
$6.00
$6.25
$6.50
$6.75
$7.00
2022Q1
2022Q2
2022Q3
2022Q4
2023Q1
2023Q2
2023Q3
2023Q4
2024Q1
2024Q2
2024Q3
2024Q4
2025Q1
2025Q2
Shophouse Median Monthly Rentals ($PSF) by Quarter
Median Rentals
by District
($PSF per month) Q2 2024 Q1 2025 Q2 2025 QOQ YOY
D01 $8.35 $7.68 $6.69 9.1%
-8.5%
D02 $8.08 $8.31 $8.05 3.5% -1.4%
D07 $7.28 $7.16 $6.94 -8.9%
-
11.0%
D08 $6.60 $6.28 $5.69 1.0%
-21.4%
D14 $5.45 $5.30 $4.73 28.9% 11.4%
D15 $6.22 $5.80 $5.64 -9.5% -7.9%
Table 2: Median Rentals ($PSF per month) of Selected Districts
