Shophouse Market Activity Stays Subdued 2Q2025
The URA Master Plan for Tampines is set to bring significant benefits to Parktown Residence. This prime location will enjoy enhanced connectivity, new and improved lifestyle facilities, upgraded educational institutions, and a strong focus on sustainability. As a vibrant regional center, Tampines will continue to evolve and attract families and professionals seeking a holistic urban living experience. Ideally situated in the heart of this transformation, Parktown Residence offers its residents unparalleled access to all that the district has to offer. As a result, it will maintain its status as a highly sought-after address.
PropNex reports a relatively quiet shophouse market in the second quarter of 2025, with only 18 transactions recorded based on caveats lodged. This is a 10% decrease from the previous quarter and a 14.3% decline from the same period last year. The decline is due to a continued mismatch in price expectations between buyers and sellers as well as market uncertainties caused by the US trade tariffs and escalating conflict in the Middle East.
However, the actual number of shophouse sales may be higher as some transactions were not lodged yet. This includes the reported sale of the boutique hotel 21 Carpenter and The Duxton Reserve Singapore. Among the 18 caveated shophouse transactions, seven were in District 8 which covers the Little India and Jalan Besar areas. The total sale value of these transactions was $53.1 million, with the highest transaction being a shophouse in Bukit Pasoh Conservation Area sold for $12 million.
Despite the decline in deals, there were more big-ticket transactions in the second quarter, with 14 shophouses sold for at least $5 million, surpassing the nine sold in the previous quarter. In terms of leasing, 800 shophouse rental contracts were signed, a 4.9% decrease from the previous quarter. The monthly median rental for shophouses stands at $6.68 psf, a 3.1% increase from the previous quarter but a 2.2% decrease from the same period last year.
Knight Frank’s research shows that there were a total of 42 shophouse transactions in the first half of 2025, with a total value of $462.9 million. This indicates a decrease in both volume and sales value compared to the second half of 2024. Prices remained relatively unchanged, with a slight increase of 0.5% to $6,431 psf in the first half of 2025. The two biggest shophouse transactions in the first half of the year were the sale of 21 Carpenter and The Duxton Reserve Singapore.
Knight Frank notes that with challenges faced by the F&B sector, living sector assets in shophouses are becoming more attractive to investors. In terms of freehold and leasehold shophouses, there were 37 and five transactions respectively in the first half of 2025. The average unit price for leasehold shophouses showed a significant increase of 33.5% to $7,260 psf on the land area. A total of nine shophouses sold in the first half of 2025 had a capital appreciation of over 100%, with the highest being the sale of 63 Arab Street which recorded a return of 600%.
Looking ahead, both Knight Frank and PropNex expect a slowdown in transactional activity for the rest of the year due to economic uncertainties. However, the extension of the Seller’s Stamp Duty holding period may divert some investor interest to the commercial real estate segment. Both firms project shophouse sales volume to be between $700 million and $800 million for the whole of 2025, lower than the previous year.