Shophouse Transactions Lower 3Q2024 Uncaveated Deals Show Demand Huttons Asia
TAGS: Huttons, shophouse market, 3Q2024, caveats, transactions, investors
Despite a decline in caveated transactions, the shophouse market in Singapore saw strong interest in the third quarter of 2024, according to Huttons Asia’s latest quarterly report. While there were 18 caveats lodged for shophouse transactions, which is lower than the previous quarter, the total transacted quantum of $138.9 million is still a significant amount. This is 28.8% lower than the previous quarter but on a year-on-year basis, it is much lower at only half of 3Q2023’s transacted quantum.
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Compared to the same period in 2023, the first nine months of 2024 saw a 46.1% decline in the number of shophouses sold, with a total value of $519 million. However, despite the decline in these figures, Huttons’ report revealed that there were a number of deals that were not caveated. Market sources revealed that several shophouses in districts 1 and 2, including those along Amoy Street, Neil Road, and Telok Ayer Street, were sold in 3Q2024. These deals are estimated to be worth more than $70 million, indicating a strong demand for shophouses.
According to Lee Sze Teck, senior director of data analytics at Huttons Asia, this is a sign of investors’ increasing interest in this market segment. He notes that the shophouse market has become attractive due to its scarcity and potential for strong capital gains. With the recent interest rate cuts, shophouses have become a popular asset for wealth creation and preservation. He anticipates that shophouse transaction volume and quantum may increase in the fourth quarter of 2024.
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