Shophouse Market Ends Quiet Year 2024 84 Caveated Transactions Huttons
According to the latest quarterly research report from Huttons Asia, the shophouse market has remained relatively quiet in 2024 with only 84 caveated transactions recorded. This number is significantly lower than the yearly average of 200 shophouse deals observed between 1995 and 2023.
Senior director of data analytics at Huttons Asia, Lee Sze Teck, notes that while many buyers did not register a caveat, it is likely that the number of shophouse deals in 2024 is the lowest since 1998.
In terms of volume and value, the 84 caveated transactions in 2024 amounted to $683.6 million, a 38.9% decline from the $1.1 billion recorded in the previous year. However, Lee adds that there were also significant transactions that were not caveated, particularly for properties on Amoy Street, Neil Road, North Bridge Road, and Telok Ayer Street, which he estimates to be worth more than $200 million.
The biggest shophouse deal in 2024 was the sale of The Rail Mall by Paragon REIT for $78.5 million in June. According to Lee, this could be the largest shophouse transaction on record, surpassing the previous record of $74.8 million for a row of shophouses on Jalan Sultan in March 2022.
The Rail Mall shophouses were valued at $62 million in December 2023, indicating a potential gain of $16.5 million for the seller. Most of the shophouse deals in 2024 were for smaller quantums, with more than half valued between $5 million and $15 million.
District 8 saw the highest number of shophouse transactions, accounting for almost half of the total deals in 2024. Lee attributes this to the area’s desirable location near the city centre and relatively lower prices compared to Districts 1 and 2.
Shophouse rents across the island experienced a decline for the second consecutive quarter, dropping 2.6% quarter-on-quarter to $6.47 per square foot per month in 4Q2024. However, for the entire year, shophouse rents increased by 1.7%.
In additional news, a row of conservation shophouses on Telok Ayer Street is currently on the market for $42 million.
The Tampines Avenue 11 mixed-use plot is strategically located near two executive condominium sites. These include the recently launched Tenet, which boasts 618 units and the upcoming tender for another executive condominium at Tampines Street 62. Additionally, the plot is in close proximity to Parktown Residence Condo, providing even more convenient options for residents.